Commonalities And Differences Between Garage Coverage And Garagekeepers Liability Insurance

There are certain commonalities and differences between garage insurance and garagekeeper liability insurance. The main similarity, and maybe the only commonality, is that both coverages are needed in the businesses that are affiliated with using vehicles. The differences are several, and to understand the dissimilarities we will begin with defining both concepts.

Garage Liability. This is necessary to deliver protection for bodily injury and property damage resulting from garage operations. Garage activities refer to activities affiliated with ownership, maintenance, and use of sites for garaging businesses. Garage Liability takes into account two major coverages:

1. Garage Liability - Covered Auto: This is probably the most critical coverage that a garage businesses need to have. Garages have different auto liability exposure, and for that reason they must have to have different types of coverage. The insurance sector provided a Symbol System for Auto Liability. This is a brief explanation:

* SYMBOL 21 = Any Auto. This is the most broad symbol where coverage applies to any auto.
* SYMBOL 22 = All Owned Autos. Coverage under this symbol applies to any and all automobiles that are owned by the establishment, including trailers that are towed by the owned automobiles.
* SYMBOL 23 = Owned Private Passenger Autos Only. Coverage associated with this code includes all owned private passenger automobiles.
* SYMBOL 24 = Owned Autos Other Than Private Passenger Autos Only. Coverage here applies to other than private passenger type automobiles owned by an insured, including trailers pulled by an owned automobiles.
* SYMBOL 25 = Owned Autos Subject to No Fault. This symbol applies to any auto which is owned by an insured in any no-fault jurisdictions.
* SYMBOL 26 = Owned Autos Subject To A Compulsory Uninsured Motorist Law. This is applicable to any automobile that is owned by the insured in states where uninsured motorists is a compulsory coverage.
* SYMBOL 27 = Specifically Described Autos. Coverage applies to only certain automobiles that are specifically listed on the policy.
* SYMBOL 28 = Hired Autos Only. Coverage applies to autos that the insured leases, hires, rents, or borrows from any one who is not an officer, owner or employee of the business.
* SYMBOL 29 = Non Owned Autos Only. Coverage applies to automobiles that the insured does not own, lease, hire, rent, or borrow, but that are used in the business. This includes vehicles owned by own partners, staff, or any members of the business while these vehicles are used in the business activities.
* SYMBOL 30 = Autos Left for Service/Repair/Storage. This is applicable to automobiles that are left at auto service establishments for maintenance or repair.
* SYMBOL 31 = Autos on Consignment. Coverage applies to any and all autos left on the premises of the insured for sale based on consignment basis. This does not apply to automobiles left at car dealers.

2. Garage Liability - Other Than Covered Auto: This includes features of the Commercial General Liability, other than auto liability. CGL coverages such as premises (ie slip and fall) are normally covered here.

Garagekeepers Liability Insurance. This is physical damage coverage on customers' autos that are left in the custody of the insured for repair or routine maintenance. The coverage options are collision, comprehensive (any thing other than collision), specified causes of loss (fire, lightning, or explosion; theft; or mischief or vandalism).
Garagekeepers can be included as primary or legal. Garagekeepers Legal Liability (also called Garagekeepers Direct Excess, coverage applies to losses in excess of the auto owner's coverage. To say it another way, the policy will pay after the client's automobile policy pays, and only if the insured is legally liable for the damage of the automobile. Garagekeepers Primary Liability (also referred to as Garagekeepers Direct Primary,) the garage insured would share the loss with the auto owner's insurer, without regard to who is at fault. Garagekeepers Primary Liability allows for more protection for garages.

Businesses Needing Garage Liability. The following are examples of businesses that require garage liability:

Towing Operations, Car Dealers, Mechanic Shops, Auto Body Shops, Valet Parking, Lube Shops, Car Washes, or any businesses that deal in the trade or service of with autos industries.
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