Is garagekeepers required?

[Katie S]

I run only a Roadside busines with zero towing.  When I first got my policy my agent basically explained why I needed garage keepers (the car is in my car while I'm working on it) and she didn't want me to be under insured.  However when looking at companies' requirements the only time they mention it is if you tow a vehicle.  Can anyone confirm,  for sure if garage keepers is necessary as a roadside only company?  I just don't want something to happen and then not be covered. Thanks for your time. 

[doingitall]

Garage Keepers Liability coverage is for exactly what you do! Accidently hook up a battery wrong - battery explodes, or shorts out ecu, or damages relays? Garage Keepers Liability covers that. Change a tire and it comes off down the road because you did not torque the lugs (or the customer does something wrong/stupid but blames you)? Garage Keepers Liability. Deliver fuel but put the wrong type of fuel in and and damage the engine?  Garage Keepers Liability.  Jack up a car to change a tire and the vehicle shifts and the jack damages the vehicle, or the vehicle falls off the jack and gets damaged?  Garage Keepers Liability. Unlock a vehicle and damage the frame, weather stripping, trim, or break a window? Garage Keepers Liability. So many potential scenarios, hopefully you get the point ...

 

That said, you certainly DO NOT need on hook coverage, or cargo coverage. Also, make sure your service vehicle is insured as a commercial vehicle, because if you get into an accident, it will certainly be considered a commercial vehicle.

 

Hope that helps.

[Steve W]

Why wouldn't General Liability be enough in those instances?

 

Unless Katie do you not have General Liability Insurance?

[doingitall]

Garage Keepers Liability is general liability for the type of work we are engaged in. If you prefer, "General Liability" for those engaged in automotive businesses. "General Liability" by itself is not usually available for most businesses. Liability is specific to types of businesses, and for certain activities related to a business. General liability would be a term used for a liability insurance policy for a business that is difficult to categorize. Insurance companies HATE the term "general" ...

[Insurance Guru]

Garage Keepers Liability and General Liability are not the same. You are confusing Garage Liability with Garagekeepers. Garage Liability and General Liability provide coverage for your operations and premises. Your operations are your repairs. The Garage Liability form is longer supported by the Insurance Service Office, the organization that develops most of the coverage forms in use and has been replaced by the General Liability form. General Liability is the proper name for your business liability insurance and through different class codes, rates are developed for the different businesses reflecting their different exposures. That is not say the Garage Liability form is never used, since the surplus lines market still uses it. The surplus market is for risks that cannot obtain coverage through the "standard" market. The "standard" market is carriers like Travelers, Zurich, Selective and Nationwide. The Surplus Lines is carries like Coloy, National LIability and Fire. When your have a Surplus Lines policy you need to be extra caucus since they generally are more restrict in their coverage, more exclusions.    Garagekeepers provides Comprehensive and Collision coverage for those vehicles in your care, custody and control.. For a pure road service provider your garagekeepers exposure is very minimal, but in the big picture it is relatively inexpensive compared to the other coverages you purchase.

[EdsTowing]

In PA, it is mandatory to have I believe $250,000 in Garage Keepers coverage if you perform Recovery for the Pa State Police.

[Katie S]

4 hours ago, Steve W said:

Why wouldn't General Liability be enough in those instances?

 

Unless Katie do you not have General Liability Insurance?

I do carry GL and Commercial auto which is why I'm confused as to whether I'd need the garage keepers since I thought the GL would cover any damages that would be my responsibility. Ie any damages I accidentally cause.  Otherwise im not certain why I wouldn't just need the garage keepers and not the general liability.  

 

Insurance world sure can be a bit confusing sometimes.  I just want to know that I won't come up short if something ever were to happen,  but at the same time I don't want to be overpaying for double coverages either.  

 

What really got me thinking as I mentioned is that most MC don't mention garage keepers being necessary for roadside only. But I recently ran across one that fits require it so it left me wondering if it is correct that I do need it and wouldn't be covered for damages caused otherwise. 

 

 

 

Thank all of you for your responses so fast.  I really do appreciate it. 

 

[Insurance Guru]

General Liability covers your repairs, Garagekeepers provides coverage if the vehicle was in storage and was stolen or if you were driving and you wrecked it. It is physical damage only. General Liability provides bodily injury coverage for faulty repairs such as a faulty brake job. It also provides coverage if you put a water pump on an engine and if fails and causes the engine to over heat and becomes damaged. In some insurance programs Garagekeepers provides coverage for the vehicle in tow also. 

[Steve W]

 

On 8/12/2021 at 7:11 PM, Katie S said:

I do carry GL

 

Guess you would need to really drill down on the language in the policy to see what exactly is covered.  Ask you argent also, give them a few scenarios and see what they say.  

[Katie S]

Okay thank you guys.  So to what I'm reading,  the only reason I would need garage keepers is if my general liability didn't cover anything that comes from my repairs which in all actually GL should cover my repairs so I shouldn't need garage keepers since I don't actually drive the customer's vehicles nor do I tow or store.  I'll double check this with my agent. She just didn't seem super sure when she explained that I needed garage keepers top be fully covered for working on customers vehicles.  But I'll double check.  Thanks again.