You can imagine the scene. One of your employees takes a customer’s car out for road testing, misjudges something and crashes the car. Not only do you have to explain to an angry car owner what happened, you also have to pay for the damage. It’s just one example of the kinds of risks that owners of garages, dealerships, auto mechanic shops and body shops have to face. Just having a commercial general liability policy though won’t cover you. For example, a CGL policy would cover you if someone tripped and broke their arm in your workshop. It might also cover you against supplying a defective product or incorrect service that resulted is subsequent damage after your customer has left your premises with their vehicle. Unfortunately, it won’t include auto-related coverage. And a normal commercial auto policy is designed for businesses whose use of vehicles is usual to their line of business. For garages – which in the insurance world can mean anything from a showroom to a valet parking business – there is specialist insurance.
There are two sides to garage insurance. The first is normal garage considerations – liability for damage to customers’ vehicles while they are at your premises and / or in your custody and control (for example, test driving, delivery, etc.). The second type of policy covers damage or loss caused by your work – a car is in an accident because brakes weren’t adjusted or installed properly or a motor fails because an oil plug wasn’t reinstalled properly after service. Axis Insurance Managers is able to create both policy types, which means you can be fully covered whatever auto-related business you’re in.
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