Garage Keepers Legal Liability Insurance
Protection of a customer’s vehicle while your company has kept it in a covered location for parking, storing, or for the performance of service.
An extension of garage keepers Insurance is a direct endorsement. The direct endorsement covers all the damages that could occur while a customer’s car is in your garage regardless of fault. This endorsement also pays the claim without having to go through the insurance company’s claim process.
Example: A tow was called out late at night for an accident. Since it is late at night the mechanic’s shop is close, so you choose to keep the care in your garage until the mechanic opens in the morning. While overnight the customer’s car is vandalized. The garage keepers Insurance will pay to repair the damages that were caused to the car.
If the garage keeper had direct endorsement coverage, the garage owner could file the claim with their insurance company and the company would then pay the customer. This would elevate the customer having to file a claim with their insurance and having to wait for the insurance companies.