Whose vehicle is it?
Start with ownership and responsibility. Owned inventory, a trade-in, a consigned vehicle and a customer’s car awaiting repair can fall into different coverage categories. Tell your agent exactly how each arrangement works.
Garagekeepers coverage may help with covered damage to customer vehicles in your care, custody or control. It does not replace the liability protection for your business, and it is not automatically included just because a policy says “garage.”
Understand the coverage basis
Legal-liability coverage generally responds when your business is legally responsible for covered damage. Direct-primary and direct-excess options can work differently and may provide protection without establishing your negligence, subject to their terms.
Ask for an explanation of when the customer’s insurance is involved and how your policy applies. The labels alone do not tell you the covered causes of loss, exclusions or deductible.
Set a limit for the busiest day
Consider the total value of customer vehicles you could have at one location at the same time, including overnight storage and overflow areas. A shop that usually holds two cars can have a very different exposure during a busy week.
Review collision, theft, fire and weather-related damage, plus any restrictions on road testing or where vehicles are kept. Security requirements and deductible structure should be clear before coverage starts.
Repair work creates other questions
Garagekeepers is not a warranty for your work. Faulty workmanship, defective parts and the cost to redo a repair may be treated differently from resulting damage. Discuss products and completed operations as well as damage to the customer vehicle.
Include detailing, mechanical repair, body work and subcontracted work in your application. A business that adds services should review its coverage before accepting the new work.