Garage liability insurance is a type of insurance coverage designed for businesses that operate in the automotive industry, particularly those involved in repairing, servicing, or selling vehicles. This type of insurance provides coverage for bodily injury and property damage that may occur on the premises of an automotive-related business. Garage liability insurance is essential for businesses that have a physical location, such as auto repair shops, dealerships, or service stations.

Key features and coverage areas of garage liability insurance include:

1. **Bodily Injury Coverage:** This component of garage liability insurance provides coverage for injuries sustained by third parties on the business premises. For example, if a customer or visitor is injured while at an auto repair shop, the bodily injury coverage may help cover medical expenses, legal costs, and other related expenses.

2. **Property Damage Coverage:** Garage liability insurance also covers damage to the property of others that occurs on the business premises. This could include damage to customers’ vehicles, adjacent properties, or other assets.

3. **Products and Completed Operations:** Coverage for products and completed operations is often included in garage liability insurance. This protects the business against liability for damages arising from services provided (completed operations) or products sold.

4. **Garagekeepers Coverage:** This coverage is particularly important for businesses that take custody of customers’ vehicles for repair, service, or storage. Garagekeepers coverage helps protect against damage to customers’ vehicles while they are in the care, custody, and control of the business.

5. **Employee Liability:** Garage liability insurance may also cover bodily injury or property damage caused by employees while performing their job duties. This can include accidents that occur during test drives or while driving customers’ vehicles.

6. **Medical Payments:** Some garage liability policies may include medical payments coverage, which provides for the payment of medical expenses for injuries sustained by third parties on the business premises, regardless of fault.

It’s important for businesses in the automotive industry to carefully review and tailor their garage liability insurance coverage based on the specific risks and operations of their business. The size and scope of coverage can vary, and businesses may need to consider additional coverages, such as pollution liability or employee dishonesty, depending on their operations.

Garage liability insurance is a crucial component of risk management for automotive businesses, helping protect them from the financial consequences of accidents, injuries, or property damage that may occur in the course of their operations. Businesses should work closely with insurance professionals to assess their unique risks and obtain appropriate coverage.