A mix of general liability and auto liability insurance is garage liability insurance. It safeguards enterprises in the automobile industry against potential liabilities like premises liability, auto liability, mishaps during test drives, and third-party bodily injury/property damage due to poor repair.
The exception for real work accomplished does, however, apply. For instance, if a mechanic changes the oil and forgets to replace the oil cap, the oil leaks and damages the engine; the liability would cover the property damage but not the oil, oil filter, or oil cap. The actual cost of the work would be borne by the insured.
Several different risks connected with running an automotive business are covered by garage liability insurance, including:
client injuries
- Your garage auto insurance would pay for the injured person's medical bills if they were treated at your vehicle repair business or garage.
- damage to customer property
- This policy would pay for the cost of repair or replacement if an accident on your property harmed a customer's or visitor's property. Customers' cars are not included in this, though.
- legal fees
- This policy would assist in covering the costs of your legal defense if a client filed a lawsuit against your company following an accident that resulted in harm or property damage. Settlements and court-ordered judgments are included as well.
- defective repairs
- The majority of garage policies cover products-completed operations. This coverage aids in protecting costs if a client has injuries or other losses due to a faulty component, poor repair, or any liability claim involving the services or features you offered.
