Commercial Auto Repair Insurance
Garage operations represent a wide range of insurance needs, extending beyond the basic property and liability protection. Below are some important coverages you should consider for your garage:
Property Insurance
Description - Insurance which indemnifies a person with an interest in physical property for its loss or the loss of its income-producing ability.
Example- You have a fire on your premises damaging your building & contents. This insurance will provide coverage up to the limits for each on your policy. |
General Liability Insurance
Description - A liability contract designed to provide the owner of an operation with the liability protection needed for the special hazards that exist there. It includes liability for bodily injury, property damage, personal injury, advertising injury, and fire damage.
Example – A customer comes to your facility and slips on a patch of ice on the sidewalk into one of your buildings, breaking his or her arm. They file a lawsuit against your company and win. You are ordered to pay for the doctors bills. This payment would come out of your general liability insurance. |
Garage Keepers Insurance
Description - Coverage for losses for which the insured is legally liable, caused by fire or explosion, theft of an entire vehicle, riot and vandalism, collision, and upset to automobiles in his care, custody and control.
Example – Your garage has a fire and causes damage to one of the vehicles you are working on in the garage. This coverage would provide coverage for the vehicle up to the limit of the policy. |
Business Auto Coverage
Description – Provides coverage for both your company’s vehicles and the liability a company may have from their driving exposures.
Example – You carry $1,000,000 liability coverage and comprehensive and collision coverage on your vehicles. On his way to pick up a part in a company truck your driver causes an accident with another vehicle. Your liability insurance would pay for the property damage and bodily injury for the other vehicle and your collision coverage would pay for the damage to your vehicle. |
Equipment Breakdown Coverage
Description – Helps protect you against the financial loss from the sudden accidental breakdown of machinery and equipment, including office equipment, heating and air conditioning systems, motors, electrical panels, production machinery, etc.
Example – A gear in a production machine suddenly breaks, shutting down your production line. Equipment breakdown coverage for your production equipment pays up to the policy limit for your cost to repair or replace the damaged gear and your lost income or extra expense caused by the accident. |
Business Income & Extra Expense Coverage
Description - A commercial property form providing coverage for "indirect losses" resulting from property damage, such as loss of business income and extra expenses incurred.
Example – Your business has a fire, forcing you to shut down production and move to another facility until the damage is repaired. Even though your production has stopped you still have expenses that need to be paid such as taxes, loans & payroll. Business income coverage covers these normal expenses. While extra expense coverage provides for those “extra” expenses involved with changing locations such as rent of the temporary location and the cost of moving the equipment. |
Crime Coverage
Description – A policy that protects you from employee theft, forgery and alterations, and left of money and securities.
Example - Your bookkeeper begins fraudulently changing credit card charge amounts and corresponding work orders. They then credit their own bank account and credit cards with the extra funds they charged to the company. This loss would be covered up the limit on the policy for employee theft. |
Employment Practices Liability Insurance
Description – Protects you against the risks of employment practices claims such as discrimination, sexual harassment and wrongful termination.
Example – An employee files a sexual harassment suit against another employee and your company. The filing employee wins and receives a cash judgment. Your employment practices liability policy would cover both the legal costs and the judgment amount up to your policy limits. |
Umbrella Liability Policy
Description - A liability policy designed to provide liability protection above and beyond that provided by standard liability contracts.
Example – Your company carries a $1,000,000 general liability policy and a $1,000,000 umbrella policy. You are sued for a general liability claim and the judge awards the plaintiff $1,200,000. Your general liability policy will cover the first $1,000,000. Your umbrella policy will then cover the remaining $200,000. |
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