In the insurance industry, Nevada garage insurance refers to the specific insurance coverage that applies to businesses that service or sells motor vehicles. This can include a mom & pop auto repair business, a large collision repair center, a full-service car wash, franchised auto service centers or a non-franchised used car dealership. Selling and servicing automobiles creates a unique set of liability exposures. Nevada garage insurance is designed to cover those exposures but the policy must be designed by someone that understands the options and specific coverage required.
Think of garage insurance as a hybrid policy that combines elements of business auto coverage and general liability. For example, the policy covers the “garage operations” which incudes the ownership, maintenance and use of a location used for auto repair (or sales and service). So, if a customer slips and falls in the waiting or service area, garage liablity provides bodily injury coverage or premises medical payments.
Likewise, garage insurance provides coverage for the use of non-owned autos left for service or repair. Typically an automotive repair shop would want to test drive a vehicle after performing repairs. In fact, it should the best practice of a good repair shop to actually road test the vehicle before giving it back to the customer. Should an employee of the automotive repair shop hit a pedestrian, or another vehicle, while driving the customer’s vehicle, the garage insurance would respond to a bodily injury or property damage claim.
Damage to the customer’s vehicle is covered by garage keepers legal liability. Ideally, this coverage should be written on a direct primary basis, meaning the shop insurance is first in line to pay for damage, regardless of who is actually at fault. Garage keepers legal liability reads very much like an auto policy and includes coverage for collision and comprehensive. A deductible typically applies, usually between $500 and $2500 per vehicle with a maximum per occurence.
Auto dealerships need coverage for damage to both owned vehicles (known as open lot coverage) and for non-owned vehicles that have been brought back for service and repair. A dealership will also need liability coverage for the operation of owned vehicles being test driven by prospective buyers.
Auto repair businessowners should also consider equipment breakdown insurance for their compressors, lifts and computerized diagnostic equipment. Other optional coverage such as broad form products and defective workmanship should be carefully reviewed. If the business has storage tanks including fuel and lubricants, pollution liability should be considered as well, in the event a tank ruptures or leaks into surrouding soil.
At Safeguard Insurance, we have many niche markets that we have developed an expertise in writing, such as dry cleaners, taverns, restaurants and liquor stores. Nevada Garage insurance is a area in which we have extremely competitive rates and several highly rated Nevada insurance companies to choose from including Travelers, Liberty Mutual and Acuity. We can tailor a comprehensive and affordable insurance program for your automotive service or sales business. Contact Ryan Dye at 702-508-9253 for a no-obligation review of your current policy or a new quote.