Commercial garages can be full of hazards. They are often filled with moving vehicles, expensive equipment, a surplus of employees and potentially dangerous tools. Even the safest garages will occasionally have accidents, and that’s why it’s essential to make sure that your business is covered. That’s where garage general liability coverage comes in.
Garage general liability (GGL) can be thought of as a combination of a commercial general liability policy and a business auto policy that’s designed to cover the typical operations of commercial garages. However, as with most insurance policies, there are some important exclusions and distinctions you should understand as you elect your coverage.
Garage General Liability: An Overview
Garage general liability is designed to cover losses that could occur in the day-to-day operations of your garage. A standard garage general liability policy breaks down covered liabilities into two distinct classes:
- Garage operations other than covered autos. This section includes coverage liability for property damage to the garage itself, as well as bodily injury to owners, their employees and their customers.
- Operation of autos. This refers to aspects of coverage similar to many business auto policies. Specifically, a GGL policy will cover vehicles owned by the business, vehicles being held for sale or any other vehicles owned by someone else and being used in business operations. For example, this would include damages incurred if a business’s manager is driving a demo vehicle and causes an accident, or if the company’s parts driver gets in an accident while making a delivery.
It’s important to note that a GGL policy will have some exclusions. The most important of which is the “care, custody or control” exclusion. This means that personal property left in the care, custody or control of the garage—including customers’ vehicles—will not be covered by the GGL policy.
If a customer’s car is damaged while in your company’s care, or if it causes damage while in your company’s care, your GGL could leave you exposed. However, there is a separate coverage commonly sold along with a GGL policy called “garagekeepers coverage” which is designed specifically to provide coverage for that exposure.
Keeping you Covered
Your partners at Brown & Brown Gulf States are here to help you find the appropriate coverage. To learn more about your GGL coverage options, or for more information on garagekeepers coverage, contact us today!
This content is strictly informational and should not be used as specific advice on insurance products, legal, accounting, and/or tax related matters. Insureds should always contact the appropriate licensed professional for their insurance, legal, accounting, or tax needs.
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