Automotive repair shops and dealerships are responsible for the customer cars they service and the safety of customers themselves when they come onto the lot or into the shop. Because these liabilities are unique to automotive businesses, they typically are not covered by general business liability insurance. Here is what auto shop and dealership owners need to know to fully protect themselves from liability claims.

Garage Liability Insurance

Most automotive businesses will need to carry two types of garage insurance. The first is garage liability insurance. Garage liability insurance protects against claims such as a customer injury while on property or damage to a customer’s car due to faulty work or a bad replacement part.

Garage Keeper’s Insurance

Some auto businesses also need garage keeper’s insurance. This coverage protects against claims when a customer’s car is stolen or vandalized while kept on the garage owner’s premises. In most cases, garage keeper’s insurance only protects the vehicle itself and not any personal belongings left inside the car.

Automotive business owners need to ensure they have the necessary coverages to be fully protected against liability claims. An insurance agency specializing in garage insurance can best advise owners on any coverage gaps they may have.