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. Combined Physical Damage Coverage

    Combined physical damage coverage is an auto insurance policy ...
  5. Contractors' All Risks (CAR) Insurance

    An insurance policy that provides coverage for both damage to ...
  6. World Insurance

    A commercial liability policy with extended global coverage. ...
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

    Top Tips for Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  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

    How Much Car Insurance Do I Need?

    Find out to determine how much car insurance you actually need with this overview of the different types of coverage available in your policy.
  7. 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.
  8. 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.
  9. Financial Advisor

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
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. 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 >>
  3. 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 >>
  4. 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 >>
  5. Who are the best-rated auto insurance companies in the US?

    Learn which U.S. auto insurance companies have the best consumer ratings and who is eligible to purchase auto insurance from ... Read Answer >>
Hot Definitions
  1. Debt/Equity Ratio

    Debt/Equity Ratio is debt ratio used to measure a company's financial leverage or a debt ratio used to measure an individual ...
  2. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
  3. Life Insurance

    A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the ...
  4. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  6. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
Trading Center