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Auto Repair
HUGE Insurance Coverage Gap Discovered For Auto Repair Businesses!!!
Your business is at INCREDIBLE risk!
There is a form of Garage Keepers Liability that I have been seeing on more and more policies. It is called Legal Liability. Frankly, it scares the crap out of me! This type of liability has an INSANE gap in it that absolutely handcuffs your coverage.
How do you know if your policy is only Legal Liability?
Look on your policy’s declaration page (usually the first 3 pages) under the portion that lists Garage Keepers Liability. It should list your liability type as either Legal Liability or Primary liability (if it does not list anything then you probably have Legal Liability).
Primary Liability: This is the most comprehensive form of liability, and the type you want. I will never write you a policy that does not include this type of liability. You are covered for virtually anything that happens to a vehicle in your care regardless of who is at fault.
Legal Liability: This is the type you don’t want. It is a very limited form of liability and nearly every broker writes it for 2 reasons; they don’t understand how it limits your coverage, and it’s CHEAPER!!! But there is a reason it’s so cheap; it has an ENORMOUS GAP in coverage to the point of giving you virtually no protection! Legal Liability will pay out a claim ONLY when you are deemed to be contractually negligent.
What you ARE covered for:
- Collisions when test driving the car
What You May Not Be Covered For:
- Stolen Vehicle
- Hit & Run from someone else
- Vandalism
- Tree falling
- Fire you didn’t physically start
- Any other vehicle damage you don’t physically cause
- Anything that happens after hours