Garagekeepers Is Vital Auto Detailing Insurance Coverage
When starting any business, one of the first concerns of the new owner should be what types of insurance are needed. For anyone starting an auto detailing business, general liability alone won't do the job because it doesn't cover a customer's vehicle while in the care, custody and control of the business owner. Any auto detailing insurance agent can confirm this. A potential detailing or tinting customer might request to see a "certificate of insurance". This breaks down exactly what the policy covers in regards to the services the shop is performing. This will ensure that their car is indeed protected while under the care of the business and its employees.
Fortunately for garage owners worried about liability when storing parked cars, several insurance companies offer what is known as Garagekeepers Legal Liability Insurance. This type of policy was designed especially for a garage owner, service stations and other people whom regularly, and temporarily, keep other people's cars in their possession. This is a policy that generally covers damages to vehicles up to a set amount specified by the policyholder.
For example, a garage that works on high-end sports cars or operates in an area prone to crime and break-ins might opt for a higher liability limit that one that operates on less expensive cars in a fairly sedate neighborhood. When taking out a Garagekeepers Legal Liability policy, the garage owner must also specify a deductible. The lower the deductible, the higher the amount of premiums they will pay in order to keep the policy current. But the higher the deductible, the more the owner must pay out of pocket when an insurable incident does occur.
Coverage of at least $100,000 will cover any damages to the more expensive vehicles that may end up in the custody of an auto body shop. The amount of coverage should exceed the value of the cars being serviced. This means that the shop is covered regardless if a worker drives someone's car into a wall or the shop burns down while a customer's car is in it.
Be aware that a Garagekeepers policy doesn't cover some instances, such as theft by an insured, defective parts, faulty work, or loss of items inside the vehicle or equipment. There are also some events that are not covered, including letting someone drive a vehicle if they are not considered an employee (for instance, an independent contractor) and they get into an accident. Their personal insurance also won't cover it because they were driving the vehicle while working for another person.
By not having Garagekeepers coverage, an important type of auto detailing insurance, an owner exposes himself and his business to a variety of risks. Speak to insurance agent about the specific details that make up Garagekeepers insurance.
Fortunately for garage owners worried about liability when storing parked cars, several insurance companies offer what is known as Garagekeepers Legal Liability Insurance. This type of policy was designed especially for a garage owner, service stations and other people whom regularly, and temporarily, keep other people's cars in their possession. This is a policy that generally covers damages to vehicles up to a set amount specified by the policyholder.
For example, a garage that works on high-end sports cars or operates in an area prone to crime and break-ins might opt for a higher liability limit that one that operates on less expensive cars in a fairly sedate neighborhood. When taking out a Garagekeepers Legal Liability policy, the garage owner must also specify a deductible. The lower the deductible, the higher the amount of premiums they will pay in order to keep the policy current. But the higher the deductible, the more the owner must pay out of pocket when an insurable incident does occur.
Coverage of at least $100,000 will cover any damages to the more expensive vehicles that may end up in the custody of an auto body shop. The amount of coverage should exceed the value of the cars being serviced. This means that the shop is covered regardless if a worker drives someone's car into a wall or the shop burns down while a customer's car is in it.
Be aware that a Garagekeepers policy doesn't cover some instances, such as theft by an insured, defective parts, faulty work, or loss of items inside the vehicle or equipment. There are also some events that are not covered, including letting someone drive a vehicle if they are not considered an employee (for instance, an independent contractor) and they get into an accident. Their personal insurance also won't cover it because they were driving the vehicle while working for another person.
By not having Garagekeepers coverage, an important type of auto detailing insurance, an owner exposes himself and his business to a variety of risks. Speak to insurance agent about the specific details that make up Garagekeepers insurance.
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