logo

Call Us Today

(513) 587-3553

  • Why Cincinnatus?
    • About Us
    • Meet The Team
    • Join Our Family
    • Lucius Quinctius Cincinnatus
    • Our Blog
    • Leave A Review
    • Refer A Friend
    • Accessibility
  • Our Products
    • Personal Insurance
    • Commercial Insurance
    • Life Insurance
  • Get Quotes
  • Contact Us
    • Customer Service Center
    • Login To Your Account

Garage Insurance

Looking for Garage Keepers Insurance in Ohio?

The terms “garage liability” and “garage keepers” is an issue not only for clients, but most agents and CSRs also find it just as confusing.

Before getting into the actual contract, consider the following example:

“A customer who purchased a vehicle from you brings it back to the lot with a mechanical issue. Your mechanic takes the vehicle for a test drive to see what’s going on, and in the process, hit’s another vehicle. He totaled the other vehicle and injured its driver. He also totaled the customer’s car he was test-driving. The other vehicle and its driver are covered by the garage liability policy, the customer’s vehicle is covered by the garage keepers”.

The answer is not that simple. Start with a basic definition of garage liability. The coverage is, in a sense, the equivalent of combining a business auto form with a commercial general liability form including products and completed operations.

The “Garage Coverage Form, CA 00 05,” has been revised several times, however, the basic architecture hasn’t changed. Examine Section II (Liability) and Section III (Garage keepers).

Section II – Liability Coverage

Section II of the form is broken into two parts: garage operations other than covered autos, and garage operations covered autos.

The intent of the policy is to cover bodily injury or property damage caused by an accident arising out of garage operations. The policy defines garage operations as the ownership, maintenance or use of locations for garage business. It also includes the ownership, maintenance or use of the autos.

The types of autos covered are defined in Section I, but for an auto dealer, you typically cover all owned autos, as well as non-owned autos used in the garage business (normally vehicles being worked on or stored).

The definition broadens the scope of coverage by adding a “catch-all” phrase. It states: “Garage operations also include all operations necessary or incidental to a garage business.” This wording is often open to interpretation by insuring carriers.

Also look at the definition of auto. This definition is simpler but still broad. The policy states, “Auto means a land motor vehicle, trailer or semi-trailer.” Unlike the CGL and business auto forms, there’s no reference to the auto being licensed for use on public roads, no reference to its number of wheels, mobile equipment or anything else.

With all this ambiguity and far-reaching language, what could go wrong?

Enter the exclusions. Exclusion No. 6 is the care, custody or control exclusion. It excludes property damage involving: (d) Property in the insured’s care, custody or control. Reading that exclusion, it becomes obvious that there is a problem with the customer’s vehicles. Any vehicle left with the garage business for repair, storage or even involved on a simple test drive is not covered based on this exclusion.

Keep in mind that third-party claims caused by the customer’s vehicle are covered, the vehicle itself is not.

Section III – Garage Keepers Coverage

Garage Keepers coverage is an optional line offering protection to the garage business for loss to a customer’s auto left in the insured’s care, custody or control. The policy clarifies that by saying, “while the insured is attending, servicing, repairing, parking or storing it in your garage operations.”

All the garage keeper intends to accomplish is to buy back the coverage lost in the care, custody or control exclusion under the liability portion of the garage form.

Garage Keepers coverage offers three options:

1. Legal Liability. This is the most common. The protection applies to a customer’s vehicle damaged due to the insured’s negligence – such as the mechanic wrecked the customer’s car while test driving it or the customer’s vehicle was left unlocked and unattended after hours.

2. Direct Primary. This form covers the customer’s vehicles regardless of liability. In a loss caused by no action of the insured such as a weather loss, or a theft although the vehicle was adequately protected, the direct primary garage keeper pays.

3. Direct Excess. This is the rarest option, although it’s the best. The form affords protection to an insured for the loss to a customer’s vehicle regardless of liability, just as direct primary does. The difference is in the event of the insured having no liability, the form will only pay in excess of any other collectible insurance.

If this sounds confusing, we’ll help you understand it better. Give us a call today and we’ll go through your options with you.

How to get started on your quote

To get started on your quote, call our office or click over to our quotes page. Either way we’ll make the process simple!

insurance agency Cincinnati OH

insurance agency Cincinnati OH

Visit Our Office

4790 Red Bank Expressway
Suite 207
Cincinnati, Ohio 45227
Get Directions
(513) 587-3553
sales@cincinnatusinsurance.com

Contact Us

Cincinnatus Insurance LLC
4790 Red Bank Expressway
Suite 207
Cincinnati, Ohio 45227
Get Directions
(513) 587-3553
sales@cincinnatusinsurance.com

Connect With Us

  • Facebook
  • LinkedIn
  • Twitter

Licensed in OH, KY, IN & MO

insurance agency Cincinnati OH

Like Us

Cincinnatus Insurance

Copyright 2018 Cincinnatus Insurance, LLC. | Website by Advisor Evolved

Call Email Service Center Payments
×
Send Message In App
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
Skip to content
Open toolbar Accessibility Tools

Accessibility Tools

  • Increase TextIncrease Text
  • Decrease TextDecrease Text
  • GrayscaleGrayscale
  • High ContrastHigh Contrast
  • Negative ContrastNegative Contrast
  • Light BackgroundLight Background
  • Links UnderlineLinks Underline
  • Readable FontReadable Font
  • Reset Reset