Posts Tagged supplements
Garage Liability Q&A
Garage and auto related operations are unique with respect to the exposures they present. The lines between the general liability for the operations side of things and the automobile liability can blur in several areas.
Lately we’ve received several inquiries regarding Garage insurance. So we thought we’d share some of the most commonly asked questions and their answers.
Q: What is included in Garage insurance coverage?
A: The Garage policy was developed to provide comprehensive liability coverage to protect both the general liability and automobile liability exposures in one neatly packaged policy, as well as protect from gaps that would otherwise leave this type of operation exposed to potential claims.
Q: Do you have markets for Garage coverage and what are they?
A: Yes, UIG has established partnerships with a variety of providers for Garage coverage. To find the provider in your area, please email info@uigusa.com or give us a call at 800.385.9978.
Q: Does Garage Liability include Premises Liability?
A: As a basic package, Garage coverage contains premises liability coverage along with products liability coverage, automobile liability coverage and physical damage protection to vehicles. Premises liability, in particular, will provide coverage for injuries suffered at the shop. For example, if a customer slips and falls while walking through the repair bay to talk to the mechanic, the shop owner’s insurance company will pay for medical care up to the policy’s specified limit.
Q: Are there any special supplements that are needed to quote Garage Liability coverage?
A: Each carrier will have its own application. At UIG, we feel that it may be more beneficial to always complete a Specialty Garage application in addition to the basic Garage Liability application, as it will address a broader range of questions to get to the best quote. Special supplements can include:
wholesale automobile dealers- new and used car dealers
- bed liner installation
- golf cart dealers
- valet
- heavy truck repair
- motorcycle dealers
- motorcycle repair
- heavy truck dealers
- recreational vehicle
- detailers
- and many more
For a supplemental app, please email info@uigusa.com or contact UIG at 800.385.9978.
Q: What types of Garage risks can UIG provide coverage for?
A: UIG provides coverage for many garage risks including, but not limited to:
- auto repair
- motorcycle repair
- recreational vehicle repair
- wholesale auto dealers
- alarm/stereo installation
- windshield installation/repair
- used car dealers
- body shops
- car washes
- detailers
- auto upholstery
- valet
- auto storage
Q: What is the minimum premium for Garage?
A: Minimum premiums generally range from $750 – $1,000.
Q: What are some of the Garage requirements?
A: General requirements can include:
- Drivers must be at least 18 years old with no known physical impairment seriously affecting the ability to drive safely.
- Drivers must have a valid United States driver’s license from the state you are operating out of.
- The driver’s surcharge for any individual for the prior three years must be submitted if over 1.60.
- Owners/Partners/Officers and their spouses and employees are the only drivers allowed to use a vehicle for personal use and must have at least five years driving experience, confirmed by their MVR.
- Liability limits for any driver under the age of 21 will be reduced to statutory limits.
- Motor Vehicle Reports (MVR) within 30 days of binding or with the addition of new employees; UM/UIM Rejection. UIG can assist with ordering MVRs as most insurance companies are no longer able to provide this documentation.
- After binding, completion of a Loss Control Inspection.
Q: How is a Garagekeeper’s limit or a car dealer’s open lot limit determined?
A: While both of these groups have slightly different coverage needs, the insured may want to insure 100 percent of their inventory value to avoid possible co-insurance penalties in the event of a loss.
To determine a coverage limit, in simplest terms, find the “lot limit” (value of all vehicles on the lot combined) as well as the “per vehicle limit,” including the average and maximum value of any one vehicle.
Q: Do Garage policies need to be audited? If yes, how often?
A: All garage policies are subject to audit — either physical or voluntary — when garage exposures change during a policy period. For example, a change in the number of employees or higher value autos may cause an increase in the garagekeeper’s limit. However, all policies with a premium of $5,000 or higher will be automatically audited on an annual basis. For premiums less than $5,000, audits are normally ordered every three years, but the timing is generally up to the policyholder’s discretion.
Any time you get a large number of cars in one place, the need for insurance is high. Unfortunately, the higher risk can carry higher premiums. Fortunately, UIG’s comprehensive garage program can give your customers great coverage at a reasonable cost.
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