Nowadays, every business needs insurance. Often, general liability is the best option because it covers issues such as bodily injury or property damage on the company’s premises, problems with an advertising campaign, or issues with products. However, some firms need a more specific policy that addresses the risks of their industry. For instance, those operating in the automotive industry can benefit from garage liability.
While general liability is designed for a wide variety of businesses, garage insurance is targeted at people working with vehicles. In some cases, both policies might be necessary, but many companies are well served with just one or the other. Today, we’ll have a closer look at the two types of insurance and discuss how you can find one that suits you.
What Is the Difference Between General Liability and Garage Liability?
A liability insurance policy is designed to protect a business or individual when a lawsuit is brought against them. For instance, the insurance company has to pay out when someone slips and falls at the firm’s premises and then asks for compensation for their injuries. General liability insurance is a policy suitable for almost everyone, and it is a necessary component of running a business.
Garage insurance is simply a more specific type of general liability designed to protect firms that operate within the automotive industry. It addresses the unique risks faced by people who own a garage, repair shop, or similar business. While this can be an extremely valuable type of insurance, some garages are already fully covered by their general liability insurance. The best way to find out more is to speak to a highly experienced insurance agent.
What Is General Liability Insurance?
Running a business comes with considerable risk. In particular, owners must protect themselves against lawsuits brought against them by clients due to bodily injuries or property damage. General liability insurance covers these problems and is therefore a vital part of a company’s business plan. For a reasonable monthly fee, you can protect your interests and make sure you don’t put your business at risk.
Who Needs to Purchase It?
Since we live in a litigious society where lawsuits are common, almost everyone who owns and operates a business needs to take out liability insurance. If you have a physical business location and you fail to protect yourself, you might have to pay a high amount of compensation, which could ruin your firm’s financial stability.
Although businesses with physical premises are the main target group for this kind of insurance, you might need it even if you operate virtually. There could still be an issue with your product, or you could make a mistake during the advertising process. Therefore, both online and physical retail stores, offices, construction sites, medical practices, and leisure centers all need general liability insurance.
What Does It Cover?
General liability protects you any time someone gets hurt or their property gets damaged at your place of business. The most common incidents are falls, which can be caused by a particularly slippery floor, a water spill that wasn’t clearly labeled, a step, or something lying around on the floor. Occasionally, businesses also have to pay out because something fell from the ceiling or someone got hurt by a piece of furniture.
Additionally, general liability protects businesses when something goes wrong with their product and it causes an accident or damage to the customer’s property. Your policy also pays out if you inadvertently cause offense or make a false claim when you advertise. These issues are general enough that they can happen to almost any company, but if you run a very specific business, you might have to take out customized insurance like garage liability.
How Much Does It Cost?
For small to medium-sized businesses, general liability insurance doesn’t have to be expensive. In many cases, policies start at $50 to $100. The price remains low as long as the company’s profits are still modest and there aren’t very many employees. When operations increase and you begin to work with more people, your risk level increases, so your insurance provider is likely to ask you to pay a higher premium.
Fortunately, there are several things you can do to keep your insurance cost reasonable. Firstly, you can increase your deductible, which is the amount you pay out before your insurance kicks in. If you are financially stable, this is a great way of reducing your monthly bill. Additionally, you can ask for a discount in exchange for upfront payment, negotiate with your insurance company, or hire an insurance agent to find you the best quotes.
What Is Garage Insurance?
Garage insurance is a type of policy designed for people in the automotive industry. It covers the risks specific to this type of business, which might include heavy objects falling, risks related to oil spills, and problems with the completed work that lead to accidents. While car-related businesses aren’t the riskiest, they do claim more often than other companies, so the premiums are likely to be higher.
Who Needs to Purchase It?
As mentioned, not every business in the automotive industry needs garage insurance. In some cases, the general liability insurance policy covers the most common risks, and purchasing an additional product would be overkill. However, there are certain risks that are unique to this industry, so you should double-check your other insurance policies to find out whether you need to get this add-on.
Aside from garages, several other types of automotive businesses can benefit from specific insurance. Some of the most common examples are parking garage or parking lot operators, dealerships, tow-truck operators, and service stations. While the automotive industry isn’t considered as high-risk as some other professions, there are some issues that are unique to the above-named kinds of businesses.
What Does It Cover?
There are three main risks that are covered under a garage insurance policy. The first one is bodily injury, which occurs when a customer gets hurt on your premises. For example, there might be oil or tools on the floor, which lead to a fall. The resulting lawsuit could cost you a five or six-figure amount, so having an adequate level of insurance is key.
The second issue is property damage, which occurs when a customer’s property gets damaged or destroyed due to an incident at your firm. Finally, your policy also protects you if there is an issue with work completed at your garage. If a customer gets injured due to a problem with your work such as an incorrectly secured tire, your insurance pays for the resulting damage and medical expenses.
How Much Does It Cost?
Compared to general liability insurance, garage liability insurance is significantly more expensive. The annual fee for a small to medium-sized garage could be $1,000 to $3,500, so you’re likely to spend one hundred dollars or more per month. It’s also important to keep in mind that you’ll need workers’ compensation insurance in addition to liability cover, so you might spend more than $6,000 on insurance products in a year.
The reason why your policy is so expensive is that garages and dealerships are riskier than average businesses. They are more likely to claim, and the amount of damage is sometimes high. You can lower your policy by shopping around for a good deal, paying upfront at the start of the year, and making sure all the security features of your business are up to date.
How to Find the Best Policy
As you can see, both general liability and garage insurance can be vital for a business in the automotive industry. However, finding the best policy in your area isn’t always easy. If you’re not sure how to begin, you should speak to an insurance agent. Here at ISU Armac, we make use of advanced technology to scan local offers and determine which ones apply to you. As a result, we can offer you quick and accurate quotes.
What’s more, our agents can help you pick between the various options. They will consider your business’s location, individual risk factors, and current financial situation to determine the best policy for you. If necessary, they can also help you find other types of insurance, such as workers’ compensation, professional liability coverage, and business interruption insurance, so you’ll know you’re protecting your company optimally.
Contact Us for Help
When starting a new business, it can be hard to know what type of insurance you need. While garage liability is specific to firms in the automotive industry, general liability is essential for almost every company because it protects owners against expensive lawsuits. If you own a garage, dealership, car parking facility, or other business related to vehicles, you might need just one or both of these policies.
The easiest way to find out more is to contact a highly skilled insurance agent and ask them to provide you with quotes. They can help you figure out your risk levels and then match you up with a policy that offers the best value for money spent. Get in touch with us at ISU Armac to find out more or get your quotes.