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Even experienced insurance agents might become confused when it comes to Garagekeepers/Garage Liability Insurance. The two coverages, which typically go hand in hand, are written as separate policies. However, they are both equally important. In this article, we’ll explore the difference between the two.
The intent of the policy is to cover bodily injury or property damage caused by an accident arising out of garage operations. The policy defines garage operations as the ownership, maintenance or use of locations for garage business. It also includes the ownership, maintenance or use of the autos. The types of autos covered are defined in Section I, but for an auto dealer, you typically cover all owned autos, as well as non-owned autos used in the garage business (normally vehicles being worked on or stored), explains Insurance Journal.
The biggest hurdle that relevant businesses face is the ambiguity of the language and the exclusions that might apply.
Exclusion No. 6 is the care, custody or control exclusion. It excludes property damage involving: (d) Property in the insured’s care, custody or control.
This policy extends coverage to the customer’s auto while under the care of the dealership, mechanic, or storage facility. Often, the initial garage liability policy will exclude damage caused to the vehicle while under the car, custody or control of a garage business, which is where this policy comes in to supplement it.
This policy includes the following coverages:
- Direct primary – When no one is at fault for the loss (such as storm damage).
- Direct excess coverage – This awards coverage regardless of who’s at fault.
- Legal liability – For cases of negligence.
About Mavon Insurance
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