A Florida auto repair shop has a Garage Coverage Form policy. A customer brings their car in for an oil change. While an employee is driving the customer's car from the service bay to the parking lot, they accidentally hit another customer's parked vehicle. Which section of the Garage Coverage Form would respond to the damage to the other customer's vehicle?
- AGaragekeepers Coverage
- BPhysical Damage Coverage (for owned autos)
- CGarage Liability Coverage
- DProducts-Completed Operations Hazard
Show answer & explanationAnswer & explanation
Correct answer: C. Garage Liability Coverage
Garage Liability Coverage addresses the insured's legal liability for bodily injury or property damage arising out of garage operations, including the use of covered autos. The damage to the other customer's parked vehicle, caused by an employee driving a customer's car during operations, falls under this liability coverage. Garagekeepers coverage, in contrast, covers damage to customers' vehicles *in the insured's care, custody, or control* (the car being driven), but not damage *to other customers' property* (the parked car).
Why the other options are wrong
- A. Garagekeepers coverage protects the customer's vehicle that is *in the care* of the garage, not other vehicles damaged by the garage's operations.
- B. Physical Damage Coverage is for the garage's *owned* autos, not for liability arising from operations or damage to customer vehicles.
- D. Products-Completed Operations Hazard covers liability arising from work that has been completed and left the premises, not ongoing operations.
Garage Liability vs. Garagekeepers Coverage
Garage Liability covers the garage's legal liability for bodily injury or property damage to others arising from garage operations. Garagekeepers Coverage covers physical damage to customers' autos while they are in the insured's care, custody, or control.
- Garage Liability: BI/PD to *others* from operations.
- Garagekeepers: Physical damage to *customers' autos* in care.
- Both are part of the Garage Coverage Form.
- Crucial distinction for auto service businesses.
Memory trick: Garage Form: Liability for others, Keepers for their cars.