Garage Liability Insurance is unusual in that it combines your Business / Premises Liability Coverage with Automotive Liability Coverage.
Garage liability policies cover bodily injury liability, and property damage, caused by Garage operations. This coverage is commonplace on lots, where dealerships are looking for coverage for all cars on the lot, as well as those in repair. Note: Garage Liability generally contains a Care, Custody and Control exclusion, in that if a non-owned or customer owned vehicle is damaged, it will not be covered. An easy fix for this, is to add Garage Keepers Coverage.
This coverage is a bit complex, but in combining these exposures, it will typically cover your General Liability exposures associated with operating your shop or service along with your Commercial Auto Liability exposures when in a customer’s vehicle or, sometimes, even your own vehicle which is owned by your business.
This particular coverage requires an experienced agent to delve into your specific situation in order to figure out what you may or may not need in an insurance program.
There have been recent changes by Insurance Carriers to this type of coverage, which has muddied the water for both agents and shop-owners in placing this type of Insurance. Many Insurance Carriers, however, still utilize the older but more effective format, which we still use and recommend.