Often the greatest concern for any shop-involved repair is dealing with the Bailee issue of customers autos in their care, custody, and control. What is their legal responsibility to insure vehicles that are kept in a secure location (normally inside a building or behind fencing)? Must they reimburse their client for damages, even if they have properly secured the vehicle? There is flexibility within the garage- keeper’s coverage. Options are legal liability, direct primary or excess legal liability. Legal liability means proving negligence; direct primary covers regardless of negligence; excess legal covers on a legal liability basis beyond what the customer’s insurance covers in an event of a loss.
Any entity that works on or makes an adjustment to the vehicle has a garage liability exposure. It is absolutely necessary that this coverage is carried because its language is specific to the automotive repair industry. This could involve tire repair and mounting, brake work, transmission repair, body frame repair, driveshaft removal prior to towing. Garage liability defends a suit alleging bodily injury or property damage resulting from the work on the vehicle. Used auto dealers have a garage liability exposure but are usually rated on driver usage and dealer tags.