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© 2016 Chris-Leef General Agency, Inc.

Garage related risks are a plentiful potential book of business.  Used Auto Dealers & Garage Service risks are on most street corners! Chris-Leef wants to help you build a book of garage business. We will strive to come alongside you to help you develop value and income for your Agency by:

  • Providing garage expertise, products, services, and education to determine your insureds’ exposures and fulfill their insurance needs.  

  • Quick interaction with you on your Garage and Auto related submissions

  • Binding new business for you by having access to six premier garage markets. Those being: Colony, National Casualty, Scottsdale E & S, Atlantic Casualty, MUSIC, & National Indemnity

 

Give us a call, (913)631-1232x1301 or email us at today and let us help you find coverage!

 Why Chris-Leef?

Coverages & FAQ's

Garage Liability

 

Who needs it?  If an insured is selling, servicing, repairing, storing, or parking vehicles, they need Garage Liability Insurance. 

What is it? A basic definition of garage liability is, in a sense, the equivalent of combining a business auto form with a commercial general liability form including products and completed operations. There are premises coverage and auto coverage included on one form.  Personal & Advertising Injury and Damages to Leased Premises are not automatically included.  These are available under the broadened coverage endorsement and must be purchased separately. 

 

There are two different coverage forms: The Garage Coverage form, CA0005 or the Auto Dealers Coverage Form, CA0025.

Garage Liability vs General Liability - Examples of who needs what.

 

Garage Liability

Auto Dealer

Valet Parking

Full-service Car Wash

Towing Service with Impound Lot

Salvaged Titled Vehicles Sales

Tire Sales and Installation

General  Liability

Auto Parts Manufacturer

Self-Parking

Self Service Car Wash

Tow for Hire

Salvage Yard with 100% uninstalled Parts sales

Tire Sales without Installation

Garage Keeper Coverage

 

This is not Garage liability. It is a totally different and separate coverage. Garage keeper is essentially Bailee coverage. Garage keeper coverage is an optional line offering protection to the garage business for loss to a customer’s auto left in the insured’s care, custody or control. The policy clarifies that by saying, “while the insured is attending, servicing, repairing, parking or storing it in your garage operations.”  Garage keepers excludes faulty work performed by you.

All garage keepers intends to accomplish is to buy back the physical damage coverage lost in the care, custody or control exclusion under the liability portion of the garage form.

What is DOL? (Dealers Open Lot)

 

This is a first party coverage which covers the physical damage on their vehicles held for sale and vehicles owned by the dealership but furnished to specified people for their personal use.  These optional coverages are:

 

Comprehensive:  Covers anything except collision with another object or overturn unless specifically excluded – Example: wind/hail/flood

 

Or Specified Cause of Loss:  Fire, lightning, or explosion, theft, windstorm, hail or earthquake, flood, mischief or vandalism, the sinking, burning, collision, or derailment of any conveyance transporting the covered “auto”.

 

Collision: Covers everything that Comp does not.  Collision with another object or overturn.

 

These coverages have a co-insurance requirement.  Costs of valuations are Actual Cash Value.

 

Who needs to be listed on a garage application?

 

ALL employees need to be listed on the application, even inactive investors, secretaries, and spouses. Most times people think if they aren’t dealing with the cars there’s no exposure. A garage policy is a combination between a General Liability & Auto policy so you still have a premises exposure with these employees.

All household members of driving age and college students should be included. Anyone who has access to the vehicles should be listed.  They won’t necessarily be included in the rating but they must be addressed. 

Garage Keeper Legal Liability vs Garage Keeper Direct Primary coverages

 

Legal Liability is where the insured must legally be liable for the loss to the customer’s auto.

Claim Example: A valet service gets into an accident while driving a customer’s auto. They are legally liable for this if the accident was their driver's fault because the vehicle was in their employees’ control.  Typically wind/hail is not covered as an insured cannot be held legally liable for an act of God.

 

Direct Primary is where a loss will be considered without regard to the insured’s legal liability.  This is a much broader coverage because the vehicle is covered even if the insured is not legally liable. This has a much higher exposure and therefore can be purchased at an increased premium.

 

Claim Example: The insured locks the customers’ vehicles away at night,  sets the alarm, locks the building where the vehicles are kept, but the vehicles get stolen.  It would be covered under Direct Primary garage keeper coverage. 

 

Under the same scenario, if Legal Liability coverage had been purchased, the claim would not be covered as the insured took every precaution to prevent the theft.