Single Source Insurance is a leading provider of New York State bonds. Apply for a NY Surety Bond today! We offer a full range of bonds, including Surety Bonds, Fidelity Bonds, garage liability and more. Even if you do not see the bond you are looking for, we likely have it. Contact us for a full list if you don't see what you need.
In addition to an�auto dealer bond, New York dealers should also consider garage liability insurance. Learn more about this policy below, and request a quote from Single Source Insurance today.
While auto dealerships and many other businesses that service and repair vehicles are required to obtain both workers� compensation insurance and a surety bond in order to become licensed to do business in New York, there is no requirement for them to purchase garage liability insurance. However, trying to save a little money by not buying garage liability insurance could end up being a very costly mistake.
Garage liability insurance, also known as garage keeper�s insurance, provides coverage that a general liability insurance policy does not. While both general liability and garage keeper�s insurance cover bodily injury to a non-employee (employee injuries are covered by Worker�s Compensation insurance), general liability insurance does not cover damage to or loss of customers� vehicles while they are in the custody, care, and control of the business.
That type of loss, whether it�s serious damage due to a severe weather event (e.g., tornado, hurricane, flooding, etc.) or the malicious act of an unknown party (e.g., theft or vandalism) is covered only by a garage liability policy.���
What is Garage Liability Insurance and Why Do You Need It?
Any business that is involved in sales, repair, detailing, or other servicing of motor vehicles benefits greatly from this policy in addition to any general liability coverage it may have. Such businesses include:
Auto dealerships
Auto repair shops (full service or specialty)
Oil change shops
Detailers and car washing services
Auto glass repair shops
Restaurants and hotels with valet services
Tire shops
In short, any business that has custody, care, and control of customers� vehicles should consider supplementing its general liability insurance with a garage liability policy.
How Does It Work?
The fundamental principle underlying all types of insurance is the transference of risk from the policyholder to the insurance company. The policyholder makes premium payments to avoid the consequences of being found liable for medical bills and damage awards resulting from a loss suffered by a third party.
The insurance company accepts the risk, in essence gambling that it will make more money from premium payments than it will pay out in claims. With insurance protection, the most a business will pay for a single claim is the deductible amount chosen at the time the policy was purchased.
How Much Does It Cost?
Compared to the possible financial impact of an accident involving serious bodily injury to a third party or extensive damage to a customer�s vehicle, the cost of garage liability insurance is peanuts. The main cost factors that come into play are:
The coverage limits (i.e., the maximum amount that can be paid out on a claim)
The specific coverages selected
The per-vehicle or per-incident deductible selected
Whether multiple coverages are bundled in a business owner�s policy (BOP)
The annual cost of insurance could run from a few hundred dollars to perhaps three thousand dollars or more. Many business owners choose a higher deductible as a way of being assigned a lower premium rate.
Request A Quote
You can rely on Single Source Insurance to get you the best deal possible on the insurance you need for your dealership or repair facility. Request a quote today!
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Frequently Asked Questions
How do I get a quote for garage insurance online?
To get a quote for garage insurance online, simply visit the website of your preferred insurance provider, fill out the necessary information about your garage, and request a quote. The insurance company will then provide you with a personalized estimate for your garage insurance coverage.
What is the difference between garage insurance and business insurance?
Garage insurance specifically covers risks associated with operating a garage business, such as damage to customer vehicles, while business insurance provides broader coverage for general business operations and liabilities.
What does a standard garage insurance policy cover?
A standard garage insurance policy typically covers liability for injuries or property damage, as well as coverage for the garage building, equipment, and inventory against risks such as fire, theft, and natural disasters.
How do I file a claim for garage insurance?
To file a claim for garage insurance, contact your insurance provider, provide details of the incident, and submit the required documentation. The insurance company will then process the claim according to the policy coverage.
What is the deductible for garage insurance?
The deductible for garage insurance refers to the amount you must pay out-of-pocket before your insurance coverage kicks in to cover the remaining costs of a claim.
Do I need garage insurance for a detached garage?
Whether you need garage insurance for a detached garage depends on the value of the structure and its contents, as well as your overall home insurance coverage. Consulting with your insurance provider can help determine if a separate garage policy is recommended.
Can I bundle garage insurance with home insurance?
Bundling garage insurance with home insurance is possible. Many insurance providers offer the option to include coverage for detached structures, such as a garage, as part of a comprehensive home insurance policy.
Can I customize my automotive garage insurance policy?
Yes, you can typically customize your automotive garage insurance policy to meet the specific needs of your business, such as adjusting coverage limits, deductibles, or adding additional protections.
What is the average cost of automotive garage insurance premiums?
The average cost of automotive garage insurance premiums is typically between $1,500 to $5,000 per year, depending on factors such as the size of the garage, location, and coverage needs.
What types of coverage are included in garage insurance?
Garage insurance typically covers property damage, liability for injuries or damages, and coverage for tools and equipment used in the garage business.
Can I get a discount on my garage insurance policy?
Yes, you may be able to get a discount on your garage insurance policy by having safety features, a good claims history, or bundling it with other insurance coverage.
What is the average cost of garage insurance per year?
The average cost of garage insurance per year is typically between $300 to $600, depending on factors such as the size of the garage, its location, and the coverage required.
What are the benefits of having garage insurance for my business?
The benefits of having garage insurance for your business include protection against physical damage to your garage, liability coverage for accidents or injuries, and financial protection in case of theft or vandalism.
Do I need insurance to operate an automotive repair shop?
Operating an automotive repair shop requires insurance to protect against liability for any damages or injuries that may occur during the course of business.
Is garage insurance mandatory in the United States?
Garage insurance is not mandatory in the United States. While some states may require certain types of coverage for garages, there is no federal law mandating garage insurance nationwide.
What are the benefits of having garage insurance?
The benefits of having garage insurance include coverage for theft, damage, and liability protection for your garage and its contents. It can help protect your financial interests in case of unexpected events.
Can I get garage insurance for a rented garage?
You can get garage insurance for a rented garage, as long as you have the owner's permission and the policy covers the specific risks associated with a rented garage.
What is the best way to compare garage insurance quotes?
The best way to compare garage insurance quotes is to obtain quotes from multiple insurers, compare coverage levels and deductibles, and consider factors such as customer service, financial stability, and overall value.
Do I need liability insurance for my automotive garage?
Liability insurance is necessary for an automotive garage to protect against claims of bodily injury or property damage that may occur during the course of business operations.
What coverage limits should I consider for garage insurance?
When considering garage insurance, you should evaluate coverage limits for property damage, liability, and any specialized coverages needed for your specific garage operations and assets.
Are there exclusions in garage insurance policies?
Garage insurance policies may have exclusions that limit coverage, such as damage from floods, earthquakes, or intentional acts. These exclusions can vary depending on the insurance provider and the specific policy terms.
How does location affect garage insurance rates?
The location of a garage can significantly impact insurance rates. Garage insurance rates are typically higher in areas with higher crime rates, natural disaster risks, or where the cost of living is generally higher.
What factors influence garage insurance premiums?
The factors that influence garage insurance premiums are the size and location of the garage, the value of the items stored, the security measures in place, and the claims history of the policyholder.
Can I switch garage insurance providers easily?
Switching garage insurance providers can be done easily, as long as you compare policies, coverage, and rates to find the best option that meets your needs.
What documentation is needed for garage insurance claims?
The documentation needed for garage insurance claims typically includes repair estimates, receipts for parts and labor, photographs of the damage, and any police reports or witness statements if the incident involved a crime.
How often should I review my garage insurance?
Reviewing your garage insurance periodically helps ensure your coverage remains adequate as your needs or circumstances change. It is recommended to review your policy at least once a year.
Are there age restrictions for garage insurance policies?
Garage insurance policies may have age restrictions, as insurers often consider the age of the policyholder when determining coverage and premiums. The specific age requirements can vary by provider and policy type.
What is included in an automotive garage policy?
An automotive garage policy typically includes coverage for the business premises, liability for customer vehicles, employee accidents, and other risks associated with operating an automotive repair shop.
Do I need garage insurance if I lease a vehicle?
Leasing a vehicle typically requires you to have garage insurance to cover any damage or theft that may occur while the vehicle is parked in your garage.
How can I enhance my garage insurance coverage?
Enhancing your garage insurance coverage may involve increasing coverage limits, adding specialized coverage for valuable equipment, and reviewing policy exclusions to ensure your specific needs are met.
