Garage Keepers Legal Liability Insurance
Garage Keeper’s Legal Liability policy is intended to coverage damage to an auto held by a garage in their care, custody or control. This is while a vehicle is for sale, service, repair, parking or installing equipment into the vehicle.
Garage Keepers Direct Primary responds regardless of fault – if the coverage is not written on a direct primary basis then the at fault party’s insurance responds first at the time of a claim.
General Liability or Garage Liability is the coverage that responds to the on premise Liability exposure.
Garage Claims Example
Insured was working on customer’s vehicle while it was on a hoist and the vehicle caught fire in the insured’s garage. The customer’s car was a total loss and insured’s carrier paid $40,000.
Insured was working on customer’s vehicle that was left in neutral. The vehicle rolled out of the garage into the parking lot and into incoming traffic. It hit a pickup truck and a man on a motorcycle. The claim had Damage to customers vehicle $20,000, damage to the pickup truck $8,000, Motorcycle Damage $5,000 and Bodily Injury damage to the driver of the Motorcycle $30,000.
Customers Vehicles were parked beside the garage on the insured’s property within a secured area. The vehicles were all vandalized. Equipment was stolen out of the vehicles resulting $12,000 Property Damage.