Which Types of Businesses Need Garage Liability Insurance?
Garage liability insurance is most often associated with car dealerships. However, many other types of businesses may either be legally required to have it, or could and should be using it to safeguard themselves. It’s essential to understand more about what it is, how it’s applied, and who needs it.
As mentioned, motor vehicle dealerships are the businesses most closely linked to garage liability, and this is absolutely true. In many states, having a specific minimum garage keepers policy is a requirement just to have a dealership license.
For instance, in Georgia it’s a mandate with a $125,000 single limit, or a $50k/$100k/$25k policy, and in Louisiana it’s also mandated, with a flat $55,000 minimum limit. Keep in mind that further differences may include the type of vehicle dealership that you’re operating. Different requirements may be in place for used versus new car dealerships, dealers who sell both, as well as other types of vehicles, such as recreational vehicles.
Elsewhere, it may not be legally required for operation. However, that doesn’t mean you shouldn’t do it. Even if it’s not a required component for dealership licenses, it should still be obtained by motor vehicle dealers in other states as well. It comes down to protecting yourself, your business, and your bottom line, and the coverage will assuredly pay for itself when a situation does occur.
While this is at the forefront of garage keepers liability, there are other businesses who should be using it too. For instance, it applies to valet parking garages and valet services at businesses such as restaurants and hotels, as well as oil change facilities, tire shops, car mechanics and repair shops, car washes, and a range of other businesses, too.
So what’s the rule for when businesses should have garage liability? It comes down to any time or situation in which a business is handling the car of a customer, by either working on it, moving it, parking it and storing it, and so forth.
For all of the above reasons and circumstances, it’s always important to work with a local expert who’s familiar with the ins and outs of your state’s regulations and requirements. Even if it’s not a legal mandate simply to operate your business though, you never want to be caught without the proper insurance. Guard yourself accordingly before it’s too late, with an effective garage keeper’s policy tailored to the specific needs and circumstances of your business’s operation.
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