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Critical Protection: The Importance of Garage Auto Policies for Vehicle Service Businesses
For businesses performing service on customers’ vehicles, a Garage Auto policy is essential. At some point during the service, a Named Insured or employee of the business will need to operate the customer’s vehicle and will be held responsible for its operation, care, and custody. Garage Auto policies are designed to meet this need and provide coverage for non-owned autos.
Typical operations covered by a Garage Auto policy include:
• Auto repair garages
• Body shops
• Specialty shops (glass repair, tinting, transmissions, mufflers)
• Car washes and auto detailing shops
Garage Auto policies are essential for businesses servicing customer vehicles, providing coverage for non-owned autos and protecting the named insured and employees while operating them.
What type of coverage is included in a Garage Auto policy?
Third-Party Liability
Named insureds and any person given permission by the business are protected while operating a non-owned (customers) automobile as long as they adhere to the course of operations described on the policy. The insurer will pay on behalf of the insured all sums for which the insured is legally obligated.
Accident Benefits
This coverage includes the same accident benefits as the OAP1 (Ontario Automobile Policy) and also adds income replacement, caregiver, non-earner benefit, medical benefit, rehabilitation, attendant care, death & funeral and indexation.
Direct Compensation – Property Damage (DCPD)
Customers are compensated directly by their own insurer, and the Garage Auto policy becomes the second payee. This speeds up the claims process and customers are able to deal directly with their own broker and insurance company.
Collision or Upset
Coverage for damage to a customer’s vehicle when it is involved in a collision or tips over.
Specified Perils
Covers loss or damage caused by specific perils (events that can cause damage) such as fire, theft, vandalism, lightning, windstorm, etc., and provides legal defense coverage for the Garage Auto policyholder.
Comprehensive
Comprehensive coverage broadens protection for customers’ vehicles beyond specified perils to include careless acts of the Named Insured and employees.
Action Steps
To learn more about protecting your auto garage business against water damage, consider exploring Unica’s Specialty Auto Services Coverage—a comprehensive solution that safeguards for your physical assets, business income, liability and employees all together under one comprehensive policy.
Interested in additional coverage for your vehicle-centric business? Speak to your Broker to learn more. Broker Partners of Unica looking for more information on Garage Auto coverage are encouraged to speak to their Dedicated Underwriter.
