Texas General Lines — Property and CasualtyCommercial LinesMedium
A client operates a fleet of food trucks. They are concerned about potential damage to customer vehicles while being serviced or parked by their employees. Which specific coverage form under Commercial Auto insurance would address this exposure?
- AGaragekeepers Coverage Form
- BMotor Carrier Coverage Form
- CPhysical Damage Coverage
- DBusiness Auto Coverage Form (BACF)
Show answer & explanationAnswer & explanation
Correct answer: A. Garagekeepers Coverage Form
Garagekeepers Coverage is specifically designed for businesses that service, repair, or park vehicles belonging to others. Since the food truck operation is concerned about damage to customer vehicles while in their care, this is the appropriate coverage.
Why the other options are wrong
- B. Motor Carrier Coverage is for businesses transporting goods or people for hire, not for damage to customer vehicles in a service/parking context.
- C. Physical Damage Coverage on a BACF covers the insured's own vehicles, not vehicles belonging to customers.
- D. BACF primarily covers the insured's own vehicles and liability for their use, not damage to customers' vehicles.
Garagekeepers Coverage
A Commercial Auto coverage form that covers damage to customers' vehicles that are left in the insured's care, custody, or control, such as for service, repair, or parking.
- Specifically for businesses handling customer vehicles.
- Covers direct physical damage.
- Can be written with 'legal liability' or 'direct primary' options.
Memory trick: If you keep customer cars, 'Garagekeepers' saves your stars.