Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Casualty InsuranceMedium
A Florida auto dealership has a Garage Coverage Form policy. A customer brings their car in for routine maintenance, and while an employee is test-driving it, they negligently cause an accident that damages a third party's property and injures the third party. Which section of the Garage Coverage Form would respond to the third party's claims for property damage and bodily injury?
- ADealers Physical Damage
- BGarage Liability Coverage
- CPhysical Damage Coverage
- DGaragekeepers Coverage
Show answer & explanationAnswer & explanation
Correct answer: B. Garage Liability Coverage
The Garage Coverage Form combines various coverages for auto dealers and service businesses. Garage Liability Coverage specifically addresses the insured's legal liability for bodily injury and property damage arising from garage operations, including the use of autos in their care, custody, or control, and operations on their premises or away from them.
Why the other options are wrong
- A. Dealers Physical Damage is a component of Physical Damage coverage for the dealership's own inventory, not third-party liability.
- C. Physical Damage Coverage (under the Garage Form) covers damage to vehicles owned by the dealership itself, not liability to third parties or damage to customer vehicles.
- D. Garagekeepers Coverage covers damage to customers' vehicles while in the insured's care, custody, or control, not liability to third parties.
Garage Coverage Form - Liability
Garage Liability Coverage, part of the Garage Coverage Form, covers the insured's legal liability for bodily injury and property damage arising from garage operations, including the use of covered autos.
- Combines auto liability and general liability for garage risks.
- Covers premises, operations, products, and completed operations.
- Includes liability from owned, non-owned, and customer autos in care, custody, or control.
Memory trick: Garage Form has 'L.K.P.' - 'Liability, Keepers, Physical'.