What if a fire broke out at your auto body shop overnight and a few of your customers’ vehicles were destroyed? What if a valet parking attendant working for your restaurant wrecked a customer’s luxury SUV? What if a mechanical failure at your carwash caused several cars to get dented and scratched?
These are just a few examples of times that garagekeepers insurance can come in handy. If you are interested in learning more about this coverage, you can speak with one of the many independent insurance agents in Colorado.
What Is Garagekeepers Insurance?
Garagekeepers insurance is an optional coverage endorsement that can be added to your business insurance policy. It is designed to cover against liability risks whenever your customers’ vehicles are in your business’ custody, care, or control.
Who in Colorado Needs Garagekeepers Insurance?
Companies that deal with any type of automotive service should consider adding garagekeepers insurance to their business insurance policy package.
The kinds of businesses that typically carry this insurance include the following.
- Towing companies
- Auto repair shops
- Service stations
- Vehicle detailing companies
- Auto body shops
- Car wash businesses
- Restaurants that provide valet parking services
Basically, if your company attends, repairs, services, parks, or stores other people’s vehicles, you should consider protecting it against losses related to potential lawsuits by investing in a garage keepers insurance policy.
How Much Does Garagekeepers Insurance Cost in Colorado?
The cost for garagekeepers insurance can vary from one business to the next. This is because rates are calculated according to several different factors such as the following.
- The type of business you are insuring
- Where the vehicles are kept when in your company’s custody
- The crime rate and weather risks where your company is located
- Your company’s claims history
- The size of your deductible
On average, businesses pay an average of about $1,100 a year for garagekeepers coverage.
To find out how much a policy will cost for your company, you can consult a local independent insurance agent. These agents can help you obtain and compare policies and quotes from some of Colorado’s top insurance providers.
What Does Garagekeepers Insurance Cover?
Garagekeepers insurance covers your customers’ vehicles when they are in the custody, care, or control of your business. You can purchase a policy that provides legal liability coverage as well as either direct primary coverage or direct excess coverage.
- Legal liability coverage: If your business is responsible for damage done to a third-party vehicle, this can cover your court costs, legal defense and administrative fees, settlements, judgments, and other damages.
- Direct primary coverage: This covers damage to customer vehicles that were not the fault of your business, but that happened while the vehicle was in your business’s custody. This can include hazards such a theft, tornadoes, floods, and hailstorms.
- Direct excess coverage: This works the same as direct primary coverage but will only cover what your customer’s car insurance will not. This means that if your customer carries comprehensive insurance, they will need to first go through their own insurance carrier and then your policy will make up anything they need to pay out of pocket such as deductibles and costs that go above their policy’s coverage limit.
A local independent agent can help you get the coverage that is right for your Colorado business.
What Is Not Covered by Garagekeepers Insurance?
As with any insurance policy, garagekeepers insurance has its limits. You should not expect your policy to cover the following.
- Damage to customer-owned vehicles caused by shoddy workmanship
- Auto theft if the vehicle was stolen by someone employed by your business
- Personal property kept in the customer’s car unless it is permanently installed (such as stereo equipment)
Some garagekeepers insurance providers will allow policyholders to purchase an endorsement that will cover personal property kept in the customers’ vehicles.
What Is the Difference Between Garage Liability Insurance and Garagekeepers Insurance?
While their names are similar, garage liability insurance and garagekeepers liability insurance are two different things.
- Garage liability insurance: This is similar to premises liability insurance. It covers your business against third-party injuries or property damage that occur as a result of an accident at your place of business.
- Garagekeepers liability insurance: This is similar to bailee's insurance. It covers loss or damage to your customer’s vehicles when they are in the custody of your business.
Many businesses, like automotive service centers and carwashes, will likely want to purchase both kinds of coverage.
Where Can I Find the Best Garagekeepers Insurance in Colorado?
If you are looking for the best garage keepers insurance policy for your Colorado business, look no further than a local independent insurance agent. These experienced professionals can answer your insurance-related questions and can shop around to help you find a suitable policy at a competitive price.
There are more than 250 independent agents in Colorado, so it should be easy to find an insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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