10 Things to Know About Garage & Repair

1. For service-type operations under a garage liability policy, the standard market generally writes this business under a general liability policy, which includes personal injury and advertising liability, fire legal liability and med pay. In order to match up reasonably with any policy that was written under a general liability form and now going to a garage form, agents need to add broadened garage coverage and med pay. That will provide basically the same coverage under the garage policy. —Bill Brecht, president and senior underwriter, Brecht & Associates.
2. The difference between garagekeepers legal liability (GKLL) and direct primary coverage is garagekeepers will provide coverage to a vehicle if it is damaged due to the insured’s negligence and direct primary covers the vehicle regardless of fault, unless specifically excluded by an endorsement. —Mike House, producer/broker, garage division, USG Insurance Services Inc.
3. Most garage service businesses require both garage liability and garagekeepers legal liability (GKLL) coverage. For example, a mechanic takes the car for a test drive but during the test drive he hits another vehicle. The damage to the vehicle he hit and any injury to the driver or passengers is covered under the garage liability, but the damage to the customer’s auto that the mechanic was driving is covered under the GKLL coverage. —Mike Fennell, vice president/underwriting, Prime Insurance Co.
4. Symbols 22 and 29 are things that might be seen on a policy. Symbol 22 is owned autos only and symbol 29 is non-owned autos used in an auto dealership. The definition for each is in the coverage form on the policy. —Mike House, producer/broker, garage division, USG Insurance Services Inc.
5. Garage is based on payroll. $5,200 for full time and $2,600 for part time (20 hours or less a week). – Todd Stanley, garage underwriter, RIC Insurance General Agency Inc.
6. Most policies with dealers open lot coverage have a co-insurance penalty. For example, if a policy with a co-insurance penalty was issued to an auto dealer and inventory is covered at a $500,000 limit, and at the time of a $100,000 loss it was determined that he had $1 million in inventory, his claim payment would be reduced to $50,000 because of the co-insurance penalty. —Mike Fennell, vice president/underwriting, Prime Insurance Co.
7. Dealer plates are special license plates used by dealers to allow customers to legally drive unregistered cars on public streets and highways. Transporter plates are used on vehicles not currently registered to any owner and do not have a license plate. —Mike House, producer/broker, garage division, USG Insurance Services Inc.
8. Dealership is based on the number of owners, spouses, and the employees. Underwriters need to know if the owner, spouse and any employee is furnished an auto. Furnished auto is used for personal use. Every owner, spouse and employee is rated differently depending on their job title, full-time, part-time (20 hours or less a week), and if they are furnished an auto or not. —Todd Stanley, garage underwriter, RIC Insurance General Agency Inc.
9. Dealer drive away is only covered for 300 miles, but can be endorse to unlimited. —Todd Stanley, garage underwriter, RIC Insurance General Agency Inc.
10. One coverage that is excluded on the garage policy is false pretense. That is when a vehicle bought at an auction yard is repossessed by the policy because it was reported stolen. —Todd Stanley, garage underwriter, RIC Insurance General Agency Inc.