When service centers keep customers’ vehicles on their property, they assume substantial risk. Centers may be held financially liable for any damage that occurs to customers’ vehicles, and that potential liability is multiplied by however many vehicles are kept. One way that Massachusetts auto service centers may protect themselves from vehicle damage liability claims is by purchasing garage keepers insurance.
Garage keepers insurance policies provide specialized coverage for non-owned vehicles. Should a customer’s vehicle be damaged, the coverage might pay to repair or replace the vehicle.
Most Massachusetts businesses that keep customers’ vehicles should have garage keepers liability. Without coverage, an incident that damages multiple vehicles could be financially devastating.
This broadly encompasses many businesses in the auto service industry, including:
Dealership auto service centers
Independent mechanics and garages
Quick oil change locations
Tow truck operators
Depots where trucks are parked
Trucking companies with non-owned equipment
In some cases, valet car parking services might also need garage keepers liability. An insurance agent who specializes in these policies can help businesses determine whether this insurance is right for them.
The exact terms of a garage keepers policy determine what exactly that policy covers. Depending on terms, policies might cover incidents such as:
Garage keepers policies often exclude customers’ belongings from their protections, and any policies that do offer coverage for belongings usually provide only limited protection. For this reason, many businesses have policies that stipulate customers are responsible for whatever is inside their vehicles.
If businesses want a policy that provides substantial protection for customers’ belongings that are kept in vehicles, a knowledgeable insurance agent can check what policies are available.
Garage keepers policies are liability policies, which means they normally protect against instances where a business might be held financially liable. These particular policies generally protect against incidents where a business might be held liable for damage to customers’ vehicles.
These aren’t property policies, which are policies that normally protect assets that businesses themselves own. These policies, thus, usually don’t cover businesses’ own vehicles. Commercial auto coverage is likely a better choice for protecting owned vehicles.
(Garage keepers policies can protect vehicles that are owned by other businesses which are customers of the policy-holding business.)
The premiums charged for garage keepers policies are based on numerous factors, and thus vary from one policy to another. Some of the details that can impact cost include:
Number of vehicles covered
Value of vehicles covered
Business’ location
Business’ recent insurance claims
Policy’s chosen deductibles and limits
An independent insurance agent can help businesses compare different custom quotes to see how much insurance will cost in a specific situation. An independent agent isn’t connected to any one insurer, and is thus able to compare policy options from among multiple insurance companies.
If you need help getting garage keepers insurance in Massachusetts, contact the independent insurance agents at Paul T. Murphy Insurance. Our agents are well-versed in the different coverages that auto service centers and similar businesses need. We have the expertise necessary to help you find a garage keepers policy that’ll keep your business well protected against potential customer claims.
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This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.
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