What does garage liability cover?
Garage liability generally addresses covered bodily injury and property damage arising from garage operations. The coverage needs to account for both your business operations and the autos involved. Depending on the insurer, those protections may be packaged in a garage policy or an auto dealers coverage form.
A customer slipping near your office and an employee causing a crash while moving inventory are different types of claims. Your agent should explain how the proposed policy handles each one, which vehicles and people qualify as insureds, and which limits apply.
Start with the way your dealership operates
Driver eligibility, trips away from the lot, unaccompanied test drives and take-home vehicles can change the coverage you need. Auction pickups, deliveries, repairs, towing and repossession also create different exposures. The policy needs to account for the actual work the dealership does.
Covered-auto symbols, driver restrictions and endorsements matter just as much as the policy title. A dealer plate does not automatically make every vehicle or every trip covered.
What needs separate attention?
Damage to the vehicles you own and hold for sale belongs in the inventory coverage discussion. Customer vehicles in your care may call for garagekeepers. Employee work injuries belong in a workers’ compensation review. Your dealer bond serves a different purpose from all three.
Read the exclusions and ask how the policy handles defective work, contractual obligations, pollution and professional errors. Coverage for one exposure does not settle every claim involving a dealership.
Choose limits for the business you have
Begin with the requirements for your state and dealer category, then review your lease, lender agreements and actual operations. A licensing minimum can be substantially lower than the amount you would want available after a serious accident.
A combined single limit provides one stated liability limit for a covered accident. Split limits separately cap injury to one person, injury to everyone in an accident and property damage. Compare quotes using the same limits so the price comparison means something.