Garage Liability Insurance
What it is:
Auto body shops can be dangerous places. Accordingly, garage liability covers this very special kind of risk. However, it usually doesn't cover damage that the auto body center does to the cars in its care (that is usually covered by a different kind of insurance, often called garagekeepers insurance).
How it works (Example):
Let's say John Doe takes his car to Jane Smith's Auto Body to get the tires changed and the brakes fixed. While the car is suspended on the hoist and the mechanic is explaining the work to John Doe, the car falls off and crushes John's foot. Jane Smith has garage liability insurance, which covers the cost of the surgery, emergency care and physical therapy associated with John's crushed foot.
Why it Matters:
Garage liability insurance is insurance that auto dealers and repair shops use to protect themselves from damage and bodily injury incurred in their service centers.