View all of the Alabama Surety Bond products that we offer at Single Source Insurance. This includes those for Birmingham, Mobile, Montgomery, Huntsville, and all others. Find Dealer Bonds required by the AL department of Revenue, Mortgage Bonds, Court Bonds and more. Simply fill out an application with our Alabama bonding company online, and you'll receive a quick turnaround!
Understanding Alabama Surety Bonds for Auto Dealerships
Garage liability insurance protects the policyholder against financial loss from damages in the event of a customer being accidentally injured on the business premises. For example, this policy can provide coverage if a customer slips on an oily floor or over an obstruction. It can be purchased as a stand-alone policy or as part of a Business Owner�s policy (BOP) combining garage liability insurance with Workers Compensation insurance and other coverages, such as commercial auto insurance.
Who Needs It?
The state of Alabama requires licensed auto dealerships (franchised and non-franchised) and repair shops to purchase garage liability insurance, in addition to meeting certain�surety bond requirements. The minimum garage liability coverage is $75,000, which is split into two categories:
Auto, which covers court-ordered damages for property damage and bodily injury of others due to an auto accident involving a vehicle owned by the dealership, and
Other than auto, which covers liability for injuries suffered by non-employees on the premises.
How Does It Work?
The basic principle underlying all insurance is the transfer of risk from the insured to the insurer. Without liability insurance, an auto dealer or repair shop owner would have to pay out-of-pocket if found legally responsible for a loss. One extremely large loss could put the continued existence of the business in jeopardy.
In Alabama, garage liability insurance combines key features of a commercial auto policy and a commercial liability policy. Other coverages are often added to create a custom BOP by including certain endorsements. Among the most common additions for dealers and/or repair shops are:
Garage keeper�s coverage, which provides protection for customers’ vehicles while they are in the custody, care, and control of the policyholder
Blanket open lot protection against damage to a dealer’s inventory
Odometer and prior damage coverage, which pays a dealer’s legal costs if sued for having incorrectly recorded an odometer reading or for not disclosing prior damages when selling a vehicle
How Much Does It Cost?
Adding endorsements for additional coverage will increase the premium cost, while electing higher deductibles can reduce your cost. The cost of a garage liability policy is typically quoted as an annual premium, but most insurance companies permit monthly or quarterly premium payments. There may be a discount for those who pay their premium annually.
Request A Quote
Our experts will gladly help you structure an insurance package to protect your dealership or repair facility. Request a quote today!
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Frequently Asked Questions
What is the minimum liability insurance requirement in Alabama?
The minimum liability insurance requirement in Alabama is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.
What is garage liability insurance in the state of Georgia?
Garage liability insurance in the state of Georgia provides coverage for third-party injuries or property damage that occur on a business's premises, such as a garage or auto repair shop.
Who needs liability insurance in Alabama?
In Alabama, liability insurance is required for certain individuals and businesses to protect against financial responsibility for injuries or damages caused to others.
Is liability insurance mandatory in Alabama?
In Alabama, liability insurance is mandatory for all drivers. Drivers are required to maintain a minimum of $25,000 per person and $50,000 per accident in bodily injury liability coverage, as well as $25,000 in property damage liability coverage.
What is the average cost of garage liability insurance in Georgia?
The average cost of garage liability insurance in Georgia is typically between $600 to $1,200 per year, depending on factors such as the size of the garage, location, and coverage limits.
Who provides garage liability insurance in Georgia?
Garage liability insurance in Georgia is typically provided by insurance companies that specialize in commercial auto or business insurance policies.
What are the benefits of garage liability insurance in Georgia?
Garage liability insurance in Georgia provides protection against third-party claims of property damage or bodily injury that occur on your business premises, helping to cover legal fees and potential payouts.
Do I need garage liability insurance for my used car dealership?
As the owner of a used car dealership, you need garage liability insurance to cover damages or injuries that may occur on your premises or due to your business operations.
What are the benefits of liability insurance in Alabama?
The benefits of liability insurance in Alabama include protection against financial losses from lawsuits, coverage for legal fees and court-ordered damages, and peace of mind in case of accidents or third-party claims.
What is covered under liability insurance in Alabama?
Liability insurance in Alabama covers bodily injury or property damage to others caused by the policyholder's negligence or actions.
Can I cancel my garage liability insurance policy in Georgia?
Yes, you can cancel your garage liability insurance policy in Georgia. Policyholders can typically cancel their garage liability insurance policy at any time, subject to any applicable cancellation fees or penalties.
What is the cost of garage liability insurance in Georgia?
The cost of garage liability insurance in Georgia can vary depending on factors such as the size of the business, the number of employees, and the specific coverage needs. On average, it typically ranges from $500 to $2,000 per year.
What is the average cost of liability insurance in Alabama?
The average cost of liability insurance in Alabama is between $500 to $1,500 per year, depending on factors such as the type of business, coverage limits, and the insurer.
What are the laws regarding liability insurance in Alabama?
The laws regarding liability insurance in Alabama require drivers to maintain minimum coverage of $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage.
Do I need garage liability insurance for my auto repair shop?
Auto repair shops typically require garage liability insurance to cover damages or injuries that may occur on the premises or as a result of their work. This insurance provides protection for your business.
Is garage liability insurance required in Georgia?
Garage liability insurance is required in Georgia for businesses operating a garage or auto repair shop to protect against potential liability claims arising from their operations.
How do I get garage liability insurance quotes in Georgia?
To get garage liability insurance quotes in Georgia, you can contact local insurance providers or use online quoting tools to compare rates and coverage options for your business.
What businesses need garage liability insurance in Georgia?
Businesses in Georgia that operate a garage, auto repair shop, or provide vehicle-related services need garage liability insurance to protect against claims of property damage or bodily injury caused by their operations.
Do I need liability insurance in Alabama for my business?
Businesses in Alabama are generally required to have liability insurance to protect against potential claims or lawsuits arising from their operations.
What factors affect liability insurance costs in Alabama?
The factors that affect liability insurance costs in Alabama include the policyholder's risk profile, the type of business, the industry, the location, and the coverage limits.
