Garage Liability Insurance
For the person who owns a car dealership or anyone who is operating an automotive repair shop, we recommend a garage liability and dealer’s open lot DOL insurance policy. ABC Insurance Services recognizes the importance of having the proper level of liability and property insurance protection for your dealership. We represent carriers with whom we have direct appointments and we maintain relationships with other Garage Liability Insurance carriers so that we can often provide multiple sources to quote this important coverage.
Two types of operations eligible for garage liability:
1. Dealers - a person or firm engaged in the commercial purchase and sale of automobiles.
2. Non-Dealers – Business operation engaged in repairing, servicing non-owned autos.
Garage liability coverage is the broad liability insuring agreement provides bodily injury and property damage liability coverage similar to that provided by the commercial general liability policy and the business auto policy. The policy agreement for garage operations other than covered autos promises to pay all sums an insured legally must pay for damages because of bodily injury or property damage when caused by an accident and resulting from garage operations other than the ownership maintenance or use of covered autos. The garage policy provides liability coverage for products that are produced or sold in a garage business. Within the policy is a completed operations coverage which would be applicable in the event that resulted from property damage to an auto as the direct result of any work the insured performed on that auto.
It is necessary that every employee and officer of your company must be listed on your garage policy, whether or not they drive a company vehicle. This list should include managers, sales persons, mechanics, lot boys, runners, detailers and office clerical personnel. At ABC Insurance Services, we need to be aware of the job classification and full or part time status of each person. Employees with faulty driving records (ie, tickets, suspensions, etc) may cause your policy to be cancelled or not renewed. In some cases, the carrier may choose to charge you a higher premium or perhaps they may suggest that you exclude a specific driver from your coverage policy. If a particular driver is excluded, you must be diligent in not allowing him/her to drive any of your vehicles.
Please be aware that DUIs and DWIs are a red flag to insurance companies. In most cases, they will choose to refuse to cover a dealership that has even one owner or employee with a DUI or DWI conviction on their driving record. In any event, the price will be much higher when such convictions are discovered.