What Every Broker Should Know About Garage Coverage

It has been several years since the Insurance Services Office and the New York Automobile Insurance Plan eliminated Garage Non-Dealer Liability risks from the Commercial Automobile Manual.

These risks include:

Parking Garages, Automobile Repair Shops, Gasoline Pumping Stations, Parking Lots, Service Stations and most Auto Service risks. The rules and rates for these risks are now found in the General Liability Manual.

Lancer Insurance Company, D.C. White Agency's affiliate and issuing carrier has not accepted this rule change.

We will continue to offer the time-tested Garage Liability Policy rated as it has been for over 60 years on a payroll basis subject to a maximum of $100.00 per week for each employee or officer.

GENERAL LIABILITY PITFALLS

While the Commercial General Liability (CGL) policy may provide broader coverage than the standard Garage policy, it does so at an additional cost. Instead of being rated on a per employee rate of maximum $100.00 per week, the CGL rate is based upon $1,000.00 of gross sales or other exposure bases. The additional cost does not stop there. For example, if your client is operating a repair shop and operates a non-owned auto off of their premises, Bodily Injury and Property Damage coverage will not be covered unless the insurer provides a separate Non-Ownership policy. The coverage can be expensive as it is based on number of drivers. The Garage policy automatically provides this coverage by the inclusion of Symbol 29 on the Declaration Page for Liability Insurance.

Another coverage which has to be purchased separately is Garagekeepers Legal Liability. The Garage policy may be endorsed to include damage to vehicles in the Care, Custody & Control of the insured. The CGL policy, however, does not have that option. If you want Garagekeepers Legal Liability for your client, you have to buy a separate policy to cover this exposure.

Again, D.C. White Agency will continue to offer Garage Liability, including Non-Owned Auto through Lancer Insurance Company on Garage Non-Dealer or Service risks.

Coverage for difficult to place Garage Non-Dealer risks, including convenience store exposures, is available through D.C. White's sister company Lawrence Excess in the non-admitted market.