DEFINITION of 'Garage Liability Insurance'

Insurance typically purchased by automobile dealerships and repair shops that covers property damage and bodily injury resulting from the operations of an auto garage. It typically does not cover accidents and damage to cars that are brought into the shop, as there is a separate insurance contract for such cases, but it does cover vehicles that are owned by the shop.

BREAKING DOWN 'Garage Liability Insurance'

Basically, garage liability insurance provides coverage for the day-to-day operations of a garage. Dealership and repair shop owners should consider incorporating their businesses in order to limit personal liability. Without incorporation, an accident that exceeds the garage liability insurance coverage might wind up costing the owner out-of-pocket money.

RELATED TERMS
  1. Automobile Liability Insurance

    Financial protection for a driver who, while operating a vehicle, ...
  2. Commercial General Liability (CGL)

    A type of insurance policy that provides coverage to a business ...
  3. Third-Party Insurance

    An insurance policy purchased for protection against the actions ...
  4. Personal Injury Protection - PIP

    A feature of automobile insurance that covers the health care ...
  5. Extra Expense Insurance

    Insurance coverage that provides funds for reasonable and necessary ...
  6. Contractors' All Risks (CAR) Insurance

    An insurance policy that provides coverage for both damage to ...
Related Articles
  1. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  2. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  3. Insurance

    What Is and Isn't Covered by Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  4. Insurance

    How Car Insurance Claims are Paid

    Here is an overview of how car insurance claims are usually paid.
  5. Insurance

    Beware The Liability Of Sharing Your Car With Strangers

    Car sharing, the newest way to rent a car, is catching on in the U.S., Canada and Europe. But both renters and the car owners they rent from may be taking on risks they don’t fully understand.
  6. Insurance

    5 Insurance Policies Everyone Should Have

    Insurance policies come in a wide variety of shapes and sizes. Shop carefully and the right policies will go a long way towards helping you protect your assets.
  7. Personal Finance

    8 Tips For Getting The Most Out Of A Garage Sale

    Whether you're selling or buying, these tips can help you get more out of this summer's garage sales.
  8. Insurance

    What Does Renter's Insurance Cover?

    Renter's insurance is supposed to cover a tenant's personal property as well as liability claims, but not all policies deliver.
  9. Insurance

    Car Insurance Add-Ons That May Be Worth The Money

    Many auto insurance add-ons are unnecessary in most situations and will simply drain money out of your pocket. There are several that are worth adding on to make sure that you are adequately ...
RELATED FAQS
  1. Suppose my garage collapsed onto my car. Are damages covered by my home insurance ...

    Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage ... Read Answer >>
  2. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  3. Does homeowners insurance cover tree damage?

    Discover how damage to a home from fallen trees is covered under your homeowners insurance policy if it happens suddenly ... Read Answer >>
  4. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  5. What types of companies are in the automotive sector besides auto manufacturers?

    Explore the relationships between automobile manufacturers and the numerous other types of companies that work in the automotive ... Read Answer >>
  6. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  6. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
Trading Center