Let’s talk garage insurance! I know, snore! However, if you can bear with me, we will go over a few of the most common gaps in garage insurance. This information might just save your business, or a less dramatic thought, it may save you a large out-of-pocket expense.
Use of personal vehicles for business purposes
You have a personal vehicle sitting in the parking lot and decide to use it to haul supplies or customers to and from the garage. Or, you have loaned a personal vehicle to a customer to use while their car is being repaired. The loaning of your car puts your own insurance at risk. You loan your car, you loan your insurance. In either scenario you have crossed the line. Your personal vehicle is truly a commercial vehicle at that point and should be rated as such. Whether it be a supply truck or a courtesy car! The cost of properly rating your vehicle will most likely be cheaper than paying out-of- pocket for repairs due to a denied claim.
Accurate lot value
This gap grows with your business if left unmonitored. You may have started off with less than five customer cars in your care and custody sitting on your lot but now, as a well-established garage, there could be 10, 15 or more! If you are covered for $50,000 worth of customer cars on your lot but your really have $200,000, I shiver at the thought of a large claim that impacts multiple customer cars, like fire or vandalism. That is a “lot” of money out of your pocket. Even on a smaller claim you will have to contend with a co-insurance clause. If you only have your lot covered up to 25% (like the example of the $50,000 low lot value compared to the $200,000) on a partial claim of $40,000, the insurance company would only cover you for $10,000. That is the basics of the co-insurance clause but, reach out if you need further information.
Liability. Liability. Liability.
These days, lawsuits are reaching higher and higher payouts which is a big problem for garages. Those who are holding onto one million or even two million liability coverage are putting themselves and their livelihood at risk. That one or two million dollars does not go as far as it once did in life and/or in legal defence. You can never have enough liability coverage, especially when trying to prevent out-of-pocket losses due to a lawsuit.
These may be the top three but, there are many other portions of your coverage that should be reviewed. Don’t wait until you have a claim to find out if you have the correct coverage. Sit down with a Bryson representative for a second set of eyes review. Please set a time to meet with us by calling 1-800-661-5196 or e-mailing our office. Thanks for reading!