A garage coverage form is a commercial coverage form used for businesses such as auto dealers, repair shops, service stations, and similar operations that have both automobile and garage-related liability exposures. It is designed for risks that do more than simply own or drive business autos.
The form exists because garage operations create a mix of exposures, including ownership and use of autos, customer vehicle handling, and business premises operations.
Why it is different from ordinary business auto coverage
A garage risk can involve:
- liability from owned business autos
- liability from dealer plates, service vehicles, or test drives
- customer injury arising from garage operations
- exposure from customers’ autos in the insured’s care, custody, or control
Because these operations are specialized, the coverage structure can differ from a standard business auto program.
Underwriting and claims context
Underwriters usually look at:
- the type of garage operation
- number and type of vehicles handled
- employee driving controls
- customer vehicle volume and storage
- prior loss history, especially test-drive, premises, and customer vehicle losses
Claims can be complicated because a loss may involve liability, physical damage, customer property, bailment-style custody issues, or multiple coverage parts at once.
Related Terms
- Garage Liability Insurance
- Automobile Liability Insurance
- Automobile Physical Damage Insurance
- Business Auto Coverage Form
- Bailment
- Business Automobile Policy