Florida requires garage liability insurance for several business licenses in the auto industry. Do you need garage liability insurance but you’re not sure why you need it or what it is? Keep reading to find out.
What is garage liability insurance?
Garage liability insurance is required of many auto-related businesses in Florida, providing coverage for bodily injury and property damage arising from business operations. If there is an accident involving the business’s vehicles or on its premises, garage liability insurance protects the policyholder from devastating losses.
Who needs garage liability insurance in Florida?
The state requires thesetypes of dealers licensed through the Florida Department of Highway Safety and Motor Vehicles to have garage liability insurance:
- Independent dealers
- Auction dealers
- Wholesale dealers
- Salvage dealers
- Franchise dealers
- Mobile home dealers
- Recreational vehicle dealers
These dealers’ garage liability insurance must provide at least $25,000 of combined single-limit coverage including bodily injury and property protection. If a dealer has more than one business location, all locations can be covered on one policy if the policy provides the proper amount of coverage per location; for example, a dealer with four business locations would need $100,000 in bodily injury and property protection coverage. In addition, dealers must provide $10,000 in personal injury protection coverage, which does not have to be increased if the dealer has more than one business location.
What else should I know about garage liability insurance?
Florida garage liability insurance is not the same thing as garagekeepers insurance. Garagekeepers insurance provides coverage for consumers’ vehicles when they are in your (the dealer’s/policyholder’s) care, while garage liability insurance covers mishaps to the dealer’s property and inventory.�Garagekeepers insurance is not required by law in the state of Florida, but it is something every business owner should consider purchasing.
There are several situations in which garagekeepers insurance might cover what your regular garage liability policy will not, depending on the type of garagekeepers coverage. The different types of coverage offered are as follows:
- Comprehensive coverage, covering damages to the consumer’s vehicle in any event except collision with another object or overturn
- Specified causes of loss coverage, covering damages to the consumer’s vehicle caused by lightning, fire, explosion, theft, or vandalism
- Collision coverage, covering damages to the consumer’s vehicle if it collides with another object or overturns
Coverage varies, so make sure you understand the type of coverage you’re purchasing and what it covers.