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Single Source Insurance is a leading bonding company providing bonds through a convenient online application system. View all of the bonds we offer in the state of Arkansas, and apply for an Arkansas Surety Bond today!
In addition to a�$25,000 auto dealer bond, Arkansas dealerships selling new or used vehicles are also required to maintain liability insurance on the vehicles they offer for sale. Many also purchase garage liability insurance. Learn more about this policy below, and request a quote from Single Source Insurance today.
Injuries to employees are covered by Worker�s Compensation insurance. Most businesses purchase general liability insurance to cover accidental injuries to non-employees and a commercial auto insurance policy to cover damage to vehicles owned by the business. The situation is a little different for motor vehicle dealers.
Garage liability insurance is designed to protect businesses that repair and service customers’ vehicles against liability claims arising from garage operations. It combines key aspects of general liability and commercial auto insurance. Garage keeper’s coverage can be added to protect the dealer from being held liable for damage to or loss of customers’ vehicles while they are in the dealer’s custody, care, and control.
In Arkansas, auto dealerships selling used vehicles are licensed by the State Police. For an application to be approved, it must be accompanied by proof of a�$25,000 surety bond and a minimum of $75,000 of liability insurance covering the vehicles offered for sale. Dealers selling new motor vehicles are licensed by the Arkansas Motor Vehicle Commission—but the same surety bond and insurance requirements apply.
The mandatory liability insurance covers only vehicles in the dealer�s inventory. It provides protection against liability for bodily injury or property damage that occurs while vehicles offered for sale are being test-driven. It does not cover liability stemming from garage operations. Yet most dealerships repair and service vehicles on the premises. Consequently, in addition to the required liability insurance on vehicles in inventory, many auto dealers voluntarily purchase garage liability insurance with a garage keeper�s coverage endorsement.
Dealerships with repair facilities are not the only businesses that benefit from having garage liability and garage keeper�s insurance. Any business that maintains and repairs customers� vehicles or has custody, care, and control of customers� vehicles can also benefit from these policies. Such businesses include:
Customers of such businesses can be injured through their own or an employee�s inattention, and their vehicles can be damaged by accident, fire, or extreme weather, stolen, or vandalized. Without adequate insurance, one substantial claim can wipe out a small business�s profits for the year or even put it out of business.
There are numerous risks associated with operating a repair facility and having custody, care, and control of customers� vehicles. Garage liability policies transfer those risks from the insured to the insurance company.
Whether a customer is accidentally injured on the premises or a tree falls on a customer�s car parked on the property while awaiting repair, payment for those claims does not come out of an insured dealer�s pocket�except perhaps for a deductible.
Garage liability insurance premiums depend on such factors as:
In most cases, the annual premium for a garage liability policy will fall somewhere between a few hundred and a couple of thousand dollars.
At Single Source Insurance, our insurance professionals can put together a garage liability policy that meets your specific needs at the lowest possible cost. Request a quote today!
