Automotive industry players are often exposed to possible body injuries from operations as well as property damage. Damage to a client’s vehicle may lead to unprecedented losses if your business is not insured. Garage keepers insurance and garage liability insurance policies in California are designed to take care of such eventualities.
Let’s take a look at what tells them apart.
This is an umbrella policy that supplements the general liability policy. It covers any unfortunate incidents that crop up from direct garage operations. Most commercial liability insurance coverages hardly cover such accidents. Garage liability insurance should not be purchased unless their value is clear to the business owner.
Customer’s injuries and employee dishonesty are both covered by the policy. Courtesy vans are included in the added premiums. The premiums can also include loss from the company’s faulty parts as well as damage from the company’s products. The policy holder’s personal property and tools are not protected.
Garage liability insurance policies in California include a maximum coverage amount as part of the policy. Unlike general liability policies that extend through the whole business, this policy is restricted to only what happens within the garage.
Garage keepers insurance in CA is restricted to incidents that occur when the policyholder is handling the client’s car. Damages while storing the vehicle and during test drives are the most common scenarios that warrant this policy. It will also extend to vandalism and theft when the car is in the keeper’s care.
The garage keeper insurance policies are available in a number of options including direct primary, legal liability as well as direct access. They cover different case scenarios and the direct access option offers the best options.
The major difference between the two policies is that one covers liability while the other takes care of the physical damage. The garage liability is a must-have for all automotive service providers. Businesses can go on without many hitches even in the absence of the garage keepers policy. The policy is however essential for vehicles awaiting service as they are not covered under the garage liability policy. They have different requirements set by insurance companies who try to keep the premiums as low as possible.
Depending on the extent of your services, you can pick one of the policies or go for both of them. The coverage options, limits, and deductibles will all influence the cost of the policy you choose to go for. A higher deductible and lower limit results in lower premiums. When the limits are increased, and the deductibles reduced then the premium will be higher. The premiums will obviously increase if you add an extension.
Businesses with multiple stores should consider having a policy for each store. Zuma Insurance offers both these policies and can be a good place to start your search for a suitable policy. Low-truck operators, automobile dealers, repair shops, packing lots operators and service stations are all eligible for either of the two policies. Possession of both policies will adequately take care of any loss exposures.
Property in your garage will not always be safe. Contact Zuma Insurance today to protect your business and prepare yourself for anything that may happen in your garage.