Garage Keeper Insurance
The garage keepers section of the policy covers the insured's liability for loss to a covered autos or auto equipment left in the insured's care while the insured is attending, servicing, repairing, parking or storing the auto in the garage operation. Garage keepers coverage is necessary because liability for such damages is excluded under the garage liability section of the policy with the care, custody, or control exclusion. The causes of loss that may be insured against are collision, comprehensive, or specified causes of loss. The specified causes of loss are fire, explosion, theft, and mischief or vandalism. The limit of insurance shown in the policy is the most the insurer will pay for each loss at each location listed in the policy. In addition to the limit of insurance the garage keepers policy pays supplementary payments that could be made to cover the cost of expenses incurred while the insurer is defending the insured against suits alleging covered losses.
Garage keepers insurance can apply on a legal liability basis, which means the insured must be legally obligated for the damages in order for the insurer to respond to a claim. The insured can also pay an extra premium for direct coverage. The direct coverage endorsement will pay for losses to customer’s cars without the usual requirement that the insured be legally liable. This endorsement is also known as goodwill coverage by many insured's because it preserves good customer relations when a customer expects to be paid for a loss even though the garage is not legally obligated to do so. |
