Garage Liability includes auto liability & premises liability. Premium is determined by the county, the liability limits, radius of operation, number of employees and the number of furnished drivers. Employees are covered during business hours or in the scope of duty (example of scope of duty would be delivering a car from the auction after business is closed). Furnished drivers are covered 24 hours a day. It is important to note that there is no coverage for an employee, family member or anyone else under any circumstances if outside of business hours unless charged for a furnished vehicle. Overnight test drives are not allowed for customers. The main thing to remember is that if you are furnishing a vehicle to an employee or family member they need to be listed and charged for to have coverage. Coverage for auto liability is provided to customers who want to test drive the vehicle. Coverage would also extend to employees who are test driving with the customer, going to the bank, picking up parts, etc. and contract drivers delivering cars.

Coverage for premises liability insures you against a customer getting hurt on your premises. An example would be if a customer came to your lot and slipped and fell causing injury to themselves. It is important to note that employees are not covered under this section of liability. If an employee gets hurt on your premises you would need a separate workers comp policy to protect you. Coverage can be extended to owner of the premises, landlord, or additional insureds.