This is the second in a series of 3 posts on the Garage policy. The first post is here. Look for the final post next week.
What is the difference between Garage Liability and Garagekeepers Legal Liability? Once again, the industry has given names that are a little too similar, making it far too easy to confuse newer agents – not to mention insureds. See the post on EBL vs EPL vs EL.
Because auto dealers and service shops are a unique business, they need a policy that is a hybrid, combining General Liability and Auto Liability policies. A Garage policy provides liability protection for the premises and operations of the business, just as a GL policy does. It can also be endorsed to add Products coverage, if needed. Coverage is found here for a customer injured on the premises.
A Garage policy also provides liability protection for the ownership, maintenance, or use of covered autos, just as an Auto policy does. The coverage forms use the same language in the insuring agreements. When an auto repair business owns vehicles, the Auto Liability coverage is found here, as well as physical damage coverage.
Note that this is different than the Physical Damage coverage for customer autos in the insured’s care. Such coverage is found elsewhere in the Garage policy. See first post in the series here for information on Garagekeepers.
A Garage policy provides limited pollution coverage, just as an Auto policy does. If a vehicle’s fluids leak as a result of a car wreck, the policy will respond. It does not cover, for example, seepage of those fluids without a collision; premises contamination; leakage of transported vehicles. A separate Pollution policy would provide such broader coverage.
While this post refers to auto dealers and auto service businesses, the policy also covers businesses that sell or service trailers, heavy trucks, RVs, and ATVs (“toys”). Boats can be added by endorsement.
The Garage policy is missing several coverages that we assume are included in a GL policy. For example, there is no separate limit for Products and Completed Operations. If a business needs this coverage, it may need a Products Liability policy. Other missing coverages are:
Personal & Advertising Injury
Host Liquor
Damage to Rented Premises
Incidental Medical Malpractice
Non-Owned Watercraft, on the water
These can be added back by use of form CA 2514. Most preferred carriers will provide without special request, but it does not hurt to be sure they are added, especially when working with surplus lines carriers.
The Auto Dealers coverage form, a newer incarnation of the Garage form, is used less often but does include some of these missing coverages: Personal & Advertising Injury; Host Liquor; Damage to Premises Rented; Incidental Medical Malpractice; Non-Owned Watercraft when on the water.
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