Garagekeepers Legal Liability Vs Garagekeepers Primary Liability Insurance

By Jacky Mendez

There are certain commonalities and dissimilarities between garage insurance and garagekeeper liability coverage. The key commonality, and possibly the only similarity, is that the two coverages are needed in the establishments that are associated with using vehicles. The dissimilarities are several, and to understand the differences we will begin with defining both terms.

Garage Liability. This is necessary to provide protection for bodily injury and property damage resulting from garage activities. Garage operations refer to actions connected with ownership, maintenance, and use of sites for garaging businesses. Garage Liability encompasses two major coverages:

1. Garage Liability - Covered Auto: This is probably the most critical coverage that a garage businesses must have. Garages have different auto liability exposure, and for that reason they must have to have different types of insurance. The insurance division came with a Symbol System for Auto Liability. This is a brief overview:

* SYMBOL 21 = Any Auto. This is the most broad symbol where coverage applies to any auto.
* SYMBOL 22 = All Owned Autos. Coverage under this code applies to any and all autos that are owned by the establishment, including trailers that are pulled by the owned autos.
* SYMBOL 23 = Owned Private Passenger Autos Only. Coverage affiliated with this symbol includes all owned private passenger automobiles.
* SYMBOL 24 = Owned Autos Other Than Private Passenger Autos Only. Coverage here applies to other than private passenger type vehicles owned by an insured, including trailers pulled by an owned automobiles.
* SYMBOL 25 = Owned Autos Subject to No Fault. This symbol is relevant to any auto which is owned by an insured in any no-fault jurisdictions.
* SYMBOL 26 = Owned Autos Subject To A Compulsory Uninsured Motorist Law. This applies to any auto that is owned by the insured in states where uninsured motorists is a compulsory coverage.
* SYMBOL 27 = Specifically Described Autos. Coverage is applicable to only certain autos that are specifically scheduled on the policy.
* SYMBOL 28 = Hired Autos Only. Coverage applies to vehicles that the insured leases, hires, rents, or borrows from any one who is not an officer, owner or employee of the business.
* SYMBOL 29 = Non Owned Autos Only. Coverage applies to vehicles that the insured does not own, lease, hire, rent, or borrow, but that are used in the business. This includes automobiles owned by own partners, staff, or any members of the business while these vehicles are used in the business transactions.
* SYMBOL 30 = Autos Left for Service/Repair/Storage. This applies to autos which are left at auto service businesses for maintenance or repair.
* SYMBOL 31 = Autos on Consignment. Coverage applies to any and all vehicles left at the location of the insured for sale based on consignment basis. This does not apply to autos left at car dealers.

2. Garage Liability - Other Than Covered Auto: This incorporates features of the Commercial General Liability, other than automobile liability. CGL coverages such as premises (ie slip and fall) are usually insured here.

Garagekeepers Liability Insurance. This is physical damage coverage on customers' automobiles that are left in the custody of the insured for repair or servicing. The coverage options are collision, comprehensive (any thing other than collision), specified causes of loss (fire, lightning, or explosion; theft; or mischief or vandalism).

Garagekeepers can be included as primary or legal. Garagekeepers Legal Liability (also called Garagekeepers Direct Excess, coverage applies to losses in excess of the vehicle owner's coverage. To put it differently, the policy will pay after the client's vehicle policy pays, and only if the insured is legally responsible for the damage of the vehicle. Garagekeepers Primary Liability (also referred to as Garagekeepers Direct Primary,) the garage insured would share the loss with the auto owner's insurer, regardless of who is at fault. Garagekeepers Primary Liability allows for more protection for garages.

Businesses Needing Garage Liability. The following are instances of businesses that need garage liability:

Towing Operations, Car Dealers, Mechanic Shops, Auto Body Shops, Valet Parking, Lube Shops, Car Washes, or any businesses that deal in the trade or service of with automobiles industries.

Author is member of Insurance Navy, a Chicago leader of business and auto insurance. You can get information about cheap vehicle insurance or information about Harvey Illinois auto insurance by visiting company's website.