Garage liability insurance protects auto service centers from liability claims resulting from faulty repair work, employee discrimination claims, and customer injuries. It is different from garage maintenance insurance, which covers damage to customers’ vehicles.
Garage liability insurance is a type of liability coverage purchased by companies that operate some type of auto service center. Garages, general repair shops, body repair shops, tire service centers, and car dealerships that offer auto repair services often have this type of coverage. Although garage liability insurance is often confused with garage attendants insurance, the two policies provide protection in different situations.
The scope of coverage offered with a garage liability insurance plan will generally focus on protecting the insured party in the event a customer encounters difficulties as a result of the installation of faulty parts. The terms and provisions of the policy may also cover problems caused by the processes used by a service technician in servicing a customer’s vehicle. This type of coverage allows the customer to be reimbursed for any out-of-pocket expenses created by faulty repair work, while also ensuring that the store owner is not in financial jeopardy as a result of the incident.
In many cases, garage liability insurance will also cover incidents that have to do with the general operation of the repair shop or service center. For example, if an employee were to file a discrimination claim, liability coverage would protect the interests of the owner. Many such policies would also protect the store owner from discrimination claims filed by people who applied for work in the business, but were ultimately not hired.
At the same time, garage liability insurance offers liability protection in the event a customer is injured in any way while their vehicle is being repaired. This means that if a customer were to fall and sustain an injury while on the premises, liability coverage would help offset the costs resulting from a lawsuit or settlement with that customer. Often, the policy would cover medical expenses, as well as any other compensation awarded by a judge in the event the matter becomes a lawsuit and is heard by the court having jurisdiction in the area.
Sometimes there is confusion between garage liability insurance and a type of liability coverage known as garage maintenance insurance. Garage attendant insurance focuses on providing protection in the event a customer’s vehicle is damaged while on the insured’s premises. This means that if the repair shop is robbed and a customer’s car is stolen or damaged, the attendant’s insurance coverage will pay for claims related to that action. By contrast, garage liability insurance generally does not provide this particular type of protection.
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