Insurance Coverage for Auto Body Shops in California

Garage Keepers Liability Coverage for Auto Body Shops

Auto Body shop Companies that are in the business of storing customer vehicles need to be protected. There are a number of things that can happen in which your company can be found liable while you are in control of a clients property.

Garage Keepers Liability coverage is designed to offer protection for business owners who offer towing services, operate service stations or auto body shops. This coverage protects customer vehicles while they are kept at the business location for parking, storage or to perform maintenance or services in the event of fire, theft, vandalism, lightning or explosion. There are two types of Garage Keepers Liability coverage that are available:

  1. Direct Primary Coverage – Coverage for a business, even if the loss is not the business’s fault nor are they legally liable.
  2. Excess Coverage – Additional coverage over the limit of coverage that the vehicle owner/customer has from his/her own insurance company. This will automatically pay if the customer does not have Automobile Insurance.

Garage Keepers Liability Coverage is Designed for:

  • Automotive and motorcycle dealers
  • Auto Body Shops
  • Auto Repair Service Stations
  • Restaurants, hotels and special event operations with valet parking
  • Private parking lots and structures and airport parking lots
  • Jewelery Repair Stores
  • Dry Cleaners
  • Car washes
  • Other businesses that accept custody or control of vehicles belonging to others for a fee

Limits and Deductibles

  • As it is related to auto body shops, you will need to determine coverage limits by considering the average value of vehicles in your care, custody, and control multiplied by the average number of vehicles  at any given time. For instance, if the average value of your customers’ vehicles is $25,000 and you tend to have 10 vehicles on hand, then you should select a limit of no less then $250,000.
  • You must select a per-vehicle deductible (generally $500 or $1,000) that is to be paid by you in case of an incident. Then, the insurance carrier will covers the remaining amount of a covered loss, up to your selected insurance limits.

Some of the most common exclusions found in an auto body shop insurance policy are:

  • Contractual obligations
  • Theft by the insured
  • Defective parts or faulty work
  • Loss to sound reproducing equipment, unless it is permanently installed
  • Loss of CDs and tapes
  • Loss to sound receiving equipment (CBs, mobile radios and telephones), unless it is installed in the dash or console
  • Radar detection equipment

By selecting the correct amount of Garage Keepers Insurance for your auto body shop, this will help adequately protected a major financial hardship on your company in the event of a major loss. Contact us today for more details.  (562) 606-1030

Integrity Now Insurance Brokers, Inc

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