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Insurance Clauses - Garage Insurance

Garage Liability

Contractor shall obtain, at contractor’s expense and keep in effect during the term of this contract, garage liability coverage for garage operations.  Coverage shall include garage keepers legal liability for autos left for service or repair and shall not be less than $ ____________ combined single limit.

Use for contract services involving auto dealers, service stations, auto repair shops, and other auto related businesses.

Garage Liability covers the legal liability of auto dealers, garages, repair shops, service stations and other auto-related businesses for claims of bodily injury and property damage arising out of business operations. Includes premises liability, products liability and automobile liability coverages.

​Assess the risks of the particular contract and use the Risk Assessment Tool to determine appropriate insurance limits and risk control measures. Ask questions such as, but not limited to: Will employees or clients go to the garage to pick-up, drop off, or wait for vehicles? Or, will the contractor pick-up and deliver vehicles? What is the chance that the maintenance, repair, or alteration performed on the vehicle will cause injury if not properly done?

Garagekeepers Legal Liability Coverage

​Contractor shall obtain, at contractor’s expense and keep in effect during the term of this contract, garagekeepers legal liability coverage for autos left for service, repair, storage or safekeeping, With a combined single limit of not less than $__________ per location.

​Use whenever the contract involves leaving vehicles in the possession of any type of garage operation.

When a vehicle is left at a garage (auto dealer, service station, repair shop and/or other related auto businesses for repairs/maintenance/service you should request garage liability insurance which includes coverage for garagekeepers’ legal liability.

​​Garagekeepers´ legal liability covers owners of storage garages, parking lots, body and repair shops, etc., for legal liability as bailees with respect to damage to automobiles left in their custody for safekeeping or repair.

Garagekeepers’ legal liability covers the vehicle(s) left on the contractor’s premises for storage or parking.  It is intended to cover damage to an auto held by a garage in their care, custody and control.

​Assess the risks of the particular contract and use the Risk Assessment Tool to determine appropriate insurance limits and risk control measures. Insurance limits should be high enough to cover the value of any vehicles left for safekeeping (yours and others) at any time. Review the limits that the contractor carries to make sure that any per vehicle sub-limits are acceptable, i.e., a $10,000 sub-limit would not be adequate for a vehicle valued at $20,000​. ​