Finders Keepers
Explain what 'garagekeepers' coverage is and provide an example of when it would apply
Provides coverage for customer vehicles that are in insured's Care, Custody, or Control.
ex: Customer vehicle waiting for repairs at shop and gets vandalized.
What is difference between a Division I (garage liability) policy versus a Division II policy?
Div I - Provides liability coverage for all owned, hired, and non-owned vehicles
Div II - Provides liability coverage for hired, and non-owned vehicles
Explain what Dealer’s Blanket coverage is and provide TWO examples of what types of vehicles it could apply to
Provides damage to covered property that is held for sale, held pending delivery after sale, or used in the insured’s business as an auto dealer or auto repair shop.
Examples: Tow trucks, vehicles held for sale, Demonstrators, vehicles furnished to employee's.
Katy (KC’s Auto Repair LLC) runs an auto repair shop at 123 Main St, Medford, WI. Her neighbor for sake of convenience asks if she could change the oil on his pickup while parked in his (neighbor’s) driveway. Katy agrees. While working on the pickup Katy drops a wrench damaging the hood. Is this covered? Why or why not?
Yes - Because the damage occurred while the vehicle was in the care, custody, control of the insured
No - Because the damage occurred at a location NOT listed on the policy where the insured regularly performs his/her garaging operations.
What is a Dealer Plate?
A license plate which allow dealers to legally operate vehicles they own and are offering for sale on public roads, even if those vehicles are not yet registered to a specific buyer
What is the difference between GK legal liability vs. GK direct Primary coverage?
GKLL - Only provides coverage should the insured be legal liable for damages to customer vehicle
GKDP - Provides coverage without regarding to legal liability or fault on behalf of the insured
What is 'Drive Other Car' (DOC) endorsement and when should it be considered on a garage risk?
DOC provides liability protection to the individual(s) named on the endorsement for the use of non-owned automobiles.
Consider when businessowners (or EE's furnished vehicles) do not carry their own personal auto policy
What is false pretense coverage?
coverage for loss caused by or resulting from someone causing the insured to voluntarily part with title to, possession of or custody of covered property by a scheme, trick, device or false pretense, or the insured's acquiring such covered property from a seller who did not have legal title.
Tracy (TR’s Wretched Wrench) does light service work on customer’s vehicles. She was to do a simple oil change on Mike’s car but forgot to put oil back in the engine. After it was returned to Mike the vehicle started on fire during his ride home. It was totaled. Does Tracy have coverage for Mike’s totaled vehicle? Is anything excluded? Will Tracy’s business survive?
Yes - Mike's vehicle covered via her garage liability products completed coverage
Yes - Tracy's 'work' or 'product' would be excluded (i.e. new oil in engine)
Definitely not.
What does IRPM stand for? (a.k.a Credits)
Individual Risk Premium Modification
What is 'Replacement & Repairs' coverage and provide an example of how it would apply
Provides reimbursement of retail to replace insured property, which was lost or damaged, or furnish labor and materials to repair covered property to which Garagekeepers Coverage applies. (at a stated % on the policy)
Does a ‘Garage Liability’ policy provide the same protection as a ‘General Liability’ policy? Why or why not?
No. All operations for garage liability protection should be customary to your operation as a garage or dealer risk. If any exposure exists beyond that of a customary garage operation there could be a gap or limitation for liability purposes.
What is ‘reporting form’ vs. ‘non-reporting form’ mean regarding a dealer blanket?
Reporting form - Insured provides a report (typically monthly) on their total inventory of vehicle's to their carrier providing coverage
Non-Reporting form - Insured carries a stated limit of coverage on their policy but is not required to report their inventory on a regular basis.
Denise (DR’s Fix it Fast) was test driving a customer’s vehicle when she lost control and ran it into a fence. Denise has the ability to do all the repair work (to vehicle) herself subsequent to this accident. How is this this covered? Is Denise allowed to do the repairs herself? How will she get paid?
This is covered via garagekeepers coverage
Yes - subject to terms of 'Replacement & Repairs' as stated on policy
She'll get paid the stated % of Replacement & Repairs should she do the work herself
What is a Class I (one) employee?
Proprietors, partners and officers active in the "auto dealer operations", salespersons, general managers, service managers, any "employee" whose principal duty involves the operation of covered "autos" or who is furnished a covered "auto"
Does coinsurance apply to garagekeepers coverage?
YES - Adequate limits must be maintained for ALL customer vehicles that might be in the insured's care, custody, or control at a given moment in time
When would pollution liability coverage be a concern for a garage operation?
#1 - Pollution Liability - Insured sites (i.e. Insured has gas pumps to fuel customer vehicles)
#2 - Pollution Liability - Broadened coverage for covered Autos (i.e. Tow truck hauling pollutants [fuel])
Aimee (AB’s Fix & Tow) does heavy mechanical repair at her shop. She also has a single tow truck and will retrieve disabled vehicles quite regularly to bring back to her shop for repair. Does Aimee need a dealer blanket? Why or Why not?
Yes - If she desires physical damage coverage on her tow truck AND does not schedule it elsewhere.
No - If she schedules her tow truck specifically on an auto policy OR does not desire physical damage on the tow truck
Hannah (Double H Dings n’ Things) runs an auto dealership with service/repair shop. She also sells Christmas Trees, Ice Cream, and Hunting Blinds off of her lot during seasonal times of the year. Hannah has a garage liability, dealer blanket, and garagekeepers policy for her business. Is she adequately covered? Why or why not?
Yes - She's covered for her operations as a dealer and repair garage
No - She's NOT covered for operations extending beyond dealer/repair garage (i.e. trees, ice cream, hunting blinds)
These external items should be picked up via 'general liability' policy/coverage
What is Symbol 21 on a garage policy?
'Any Auto'
Erica (EB’s Auto Sales & Service) is driving her tow truck back to her shop. When pulling into her shop she mistakenly hits the gas instead of the brake. She drives through the back end of her shop building and subsequently runs into a customer’s vehicle in the rear parking lot waiting for service. The tow truck, shop, and customer vehicle are all damaged. How (and where) are these items covered?
Tow Truck - Dealer Blanket (owned auto)
Shop Building - Commercial Property
Customer Vehicle - Garagekeepers
***Bonus***: How many deductibles are due?
What is ‘Broad Form Products and completed operations’ coverage? Provide an example of how this coverage would apply.
Provides some limited overage for the insured's work performed and/or product provided to a customer once returned to a customer.
i.e. Insured installs new transmission in vehicle. After returned to customer the transmission fails as was found to be defective part or incorrectly installed
Clayton (CR’s very used, barely running, hard to look at Auto Sales) has 8 used vehicles parked on his lot and available for sale. A rogue driver (in a stolen vehicle) crashes into Clayton’s lot and damages 5 of his 8 vehicles held for sale. How are Clayton’s vehicles covered? Is there a deductible due? Will recovery be made?
They are covered by his Dealer Blanket via 'collision' damage
A deductible would be due for 'each covered auto'
Unlikely due to criminal activity and the vehicle causing damage was stolen
Shane (Sparky’s Super Whips) sells high end luxury vehicles. He has a dealer blanket policy with Auto-Owners which requires he reports his total inventory every month as of the 1st of the month. Shane does this both accurately and on a timely basis to Auto-Owners. It just so happens Shane took in 3 extremely high valued vehicles following his last report to AOI. His entire lot gets damaged by hail. Is Shane covered? Does he face penalties? Should he be worried?
Yes - He's covered via his Dealer Blanket policy
No - So long as he reported both timely and accurately his policy will provide coverage (ALS) as needed for his loss
He should not be worried
What is Symbol 30 on a garage policy?
"Autos" Left With You For Service, Repair, Storage Or Safekeeping