Garage Keepers Insurance – What You Need to Know

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Garage keepers insurance is a type of insurance policy for businesses that have custody of other people’s vehicles. This type of insurance is essential for any business that provides services such as towing, repair, storage, or parking. In this article, we will discuss the basics of garage keepers insurance, what it covers, and why your business needs it.

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What is Garage Keepers Insurance?

Garage keepers insurance is a policy that provides coverage for a business that keeps customers’ vehicles in its care, custody, and control. This type of insurance is essential because it provides protection against damage or loss of these vehicles while they are in your possession. Garage keepers insurance is typically purchased by businesses such as auto repair shops, tow truck companies, valet parking services, and storage facilities.

Garage keepers insurance covers damages that may occur to a customer’s vehicle while it is in your care, custody, and control. This coverage can include damages caused by fire, theft, vandalism, collision, or other similar risks. It is important to note that garage keepers insurance only covers damages to a customer’s vehicle and does not cover damages to your own property.

What are the Types of Garage Keepers Insurance?

There are two types of garage keepers insurance policies:

Type
Description
Direct Primary Coverage
This coverage provides protection for the customer’s vehicle regardless of who is at fault in the event of damage or loss. This type of coverage is typically more expensive but provides more comprehensive protection.
Direct Excess Coverage
This coverage provides protection for the customer’s vehicle only if your business is found to be at fault for the damages or loss. This type of coverage is typically less expensive but provides less comprehensive protection.

When choosing a type of garage keepers insurance policy, it is important to consider the level of protection needed and the cost of the policy.

Why Your Business Needs Garage Keepers Insurance?

If your business keeps customer’s vehicles in its care, custody, and control, then garage keepers insurance is essential. Without this type of insurance, your business could be liable for damages or loss of these vehicles, which can be costly and damaging to your reputation. Garage keepers insurance provides protection and peace of mind for your business and your customers.

Garage keepers insurance not only protects your business from financial liability but also helps you build trust with your customers. By providing comprehensive protection for their vehicles, you are demonstrating that you value their property and are committed to providing the best possible service.

FAQ

What is the cost of garage keepers insurance?

The cost of garage keepers insurance varies depending on the level of coverage needed, the type of policy, and the size of your business. Typically, the cost of garage keepers insurance can range from a few hundred dollars to several thousand dollars per year.

What does garage keepers insurance cover?

Garage keepers insurance covers damages that may occur to a customer’s vehicle while it is in your care, custody, and control. This coverage can include damages caused by fire, theft, vandalism, collision, or other similar risks.

Who needs garage keepers insurance?

Any business that keeps customer’s vehicles in its care, custody, and control needs garage keepers insurance. This includes businesses such as auto repair shops, tow truck companies, valet parking services, and storage facilities.

What is the difference between direct primary coverage and direct excess coverage?

Direct primary coverage provides protection for the customer’s vehicle regardless of who is at fault in the event of damage or loss. Direct excess coverage provides protection for the customer’s vehicle only if your business is found to be at fault for the damages or loss. Direct primary coverage is typically more expensive but provides more comprehensive protection, while direct excess coverage is typically less expensive but provides less comprehensive protection.

What are the benefits of garage keepers insurance?

The benefits of garage keepers insurance include protection against financial liability, peace of mind, and building trust with your customers. By providing comprehensive protection for their vehicles, you are demonstrating that you value their property and are committed to providing the best possible service.

Conclusion

Garage keepers insurance is an essential type of insurance for businesses that keep customer’s vehicles in their care, custody, and control. This type of insurance provides protection against damages or loss of these vehicles while they are in your possession. By having garage keepers insurance, you can protect your business from financial liability and build trust with your customers. When choosing a garage keepers insurance policy, it is important to consider the level of protection needed and the cost of the policy.

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