Safety First: What Could Go Wrong? 3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

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Safety First: What Could Go Wrong? 3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

By Zuma Insurance Services | July 12, 2017

auto repair shops


Every business faces its own unique challenges and risks. Whether your auto repair shop has been in business for decades or you’ve just opened the garage doors, ensuring the safety of your employees and clients should be at the top of your safety list. While there are a great many insurance options available for protecting your team and your bottom line, additional coverage options like Garagekeepers Liability insurance help protect against the truly unexpected.

What is Garagekeepers Liability Insurance?

This insurance coverage is designed to protect against damage to a customer’s vehicle while in your auto shop. It covers damage by fire, theft, vandalism or collision. This optional coverage is great for any business owners who offer towing services or operate service stations because it protects your customer’s vehicles whenever you keep it in a covered location for parking, storing or to provide services.

Does My Business Need Garagekeepers Liability Coverage?

At Zuma Insurance, we believe it’s important to explore optional coverage options whenever you choose an insurance policy that is tailored to fit your business needs. If your business provides towing services or auto repair services, this type of coverage will protect against liability claims whenever you store customer vehicles on-site.

3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

1. Late Night Breakdown

An auto repair shop was called to tow away a broken-down car very late at night when their garage was already closed. The customer was aware and knew that repairs wouldn’t begin until the morning, so the driver stored the car in the shop overnight. Unfortunately, someone broke into the shop overnight and vandalized the customer’s car. The garage didn’t have the right level of coverage and had to pay for the damages out-of-pocket.

Safety First: What Could Go Wrong? 3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

Safety First: What Could Go Wrong? 3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

2. The Mysterious Ding

When picking up her new Mercedes from her local auto repair shop after a few minor repairs, a customer noticed that there was a ding on her driver’s side that wasn’t there before. Not knowing what happened, her mechanic suggested she notify her insurance company to file a claim. Upset, the customer successfully filed a claim. And unfortunately for the repair shop, they were forced to pay for the expensive cosmetic repairs to her new car.

3. Parking Lot Risk

Even with warning signs, when customers park their broken down vehicles outside to wait for repairs, shop owners are responsible for damages. Like in the case where a customer left his expensive laptop and work tools in his car over the weekend. While it was waiting for repairs someone broke in and stole everything inside. He filed a claim against the repair shop and won because they didn’t invest in the right level of protection.

Protect Your Business with Total Insurance Coverage

Safety First: What Could Go Wrong? 3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

Safety First: What Could Go Wrong? 3 Times Auto Repair Shops Should Have Used Garagekeepers Liability Insurance

Because garagekeepers liability is considered an additional or optional coverage option, many business owners skip this coverage altogether, only to find that they could have used it after an accident. Keep these factors in mind when building your insurance policy at Zuma Insurance:

  • Whether one car is damaged or 50, you are responsible for any vehicles stored in your shop in the event of a fire, vandalism, theft or other disasters.
  • Cosmetic repairs can be costly. Even if you are unsure how a vehicle was damaged in your shop, you can end up paying for repairs without proper coverage.
  • Don’t skip out on coverage just because it’s considered “optional.” It may keep your business afloat if a vandal decides to hit your parking lot!

Don’t get caught without the right level of protection when your business needs it the most. Instead, invest in a comprehensive insurance policy that includes optional coverage like garagekeepers liability, with Zuma Insurance. Visit us online to get a free quote and invest in a new policy today.