FOR ALL YOUR SURETY BOND NEEDS.
Apply for a Virginia Surety Bond today! Single Source Insurance is a leading Virginia surety company. Apply easily online and take advantage of lowest rates. Quickly browse the bonds we offer for this state, or contact us for a full list.
Learn more about this policy below, and request a quote from Single Source Insurance today.
In Virginia, the term �garage liability insurance� can be interpreted in a couple of ways. In a broad sense, it applies to the collection of coverages needed and commonly purchased by motor vehicle dealerships, repair shops, towing services, and other businesses in the automotive industry. These coverages typically include general liability, Workers Compensation, commercial auto insurance, errors and omission insurance, and more, and may be bundled as a Business Owner�s Policy or BOP.��“Garage liability insurance” may also refer to the combination of general liability insurance and garage keeper’s coverage.
General liability insurance protects the dealer or other covered business owner against the cost of bodily injury and associated medical bills and property damage suffered by third parties on the business�s premises or in the course of normal business operations.
Garage keeper�s coverage, typically added as an endorsement to a general liability policy, provides protection against damage to customers� vehicles in the custody, care, and control of the business. For example, vehicles left at a dealership for repair are covered for theft as well as for damage due to fire, severe weather, collision, or vandalism. However, the contents of such vehicles are not covered unless a special endorsement is added to protect a customer�s personal property.
Virginia requires auto dealerships to provide proof of insurance when applying for a business license. The requirement specifies that liability insurance must be maintained for each dealer plate issued to the business. Though liability insurance may not be mandated by the state for all auto repair-related businesses, most owners of such businesses recognize the risks of operating without liability protection and purchase it voluntarily.
Between general liability, commercial auto, and garage keeper�s insurance, nearly every incident that could result in a third party�s bodily injury or property damage is covered. Note that bodily injury to an employee is covered under a dealer�s Worker�s Compensation policy. Some incidents may result in claims on more than one policy.
Suppose that a mechanic working on a customer�s vehicle takes it out for a test drive and collides with another vehicle. Both drivers are injured, and both vehicles are heavily damaged. The other driver�s medical bills and any damages awarded as a result of the accident would be paid by the dealer�s garage liability insurance, but the employee�s medical bills would be covered by Worker�s Compensation. The damage to the other car would be covered by the garage liability policy, but the damage to the customer�s car would be covered by the dealer�s garage keeper�s insurance.
The premium cost depends on two key factors: the dollar amount of coverage purchased and the deductible the business owner chooses. Choosing a higher deductible results in a lower premium, which can be a good strategy as long as you can afford to pay the deductible out-of-pocket when a covered loss occurs.
Insurance companies typically allow policyholders to pay their premiums on a monthly or quarterly basis. However, there may be a discount for paying the entire year�s premium up front.
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!
