Having a good understanding of the risks faced by your garage, towing, and repossession clients go a long way to ensuring that they’re adequately covered. A careful review of these risks will help you identify where coverage gaps might exist in their policies. Here are two important risks:
Automobile Tow Damage
The cars towed by your clients can be damaged in several ways. They are exposed to road and highway traffic, which means they can suffer damage in a traffic accident. This can happen while securing the car to, or on, the tow truck on the side of the road. Accidents may also happen during the tow itself. If the tow drivers are inexperienced, overworked, or lack sufficient sleep, mistakes can happen that cause either of these two types of accidents. These risks are especially acute during the winter months in northern states that get frequent snow and ice storms.
In addition to traffic accidents, mistakes in how the cars are secured during the towing process are another risk. Your clients should do their hiring carefully, check their drivers’ motor vehicle records, check their driver logs for excessive hours, and provide proper training.
Automobile Damage or Theft While on Your Clients’ Property
Cars kept on your clients’ property whether inside a garage or on its parking lot are subject to a number of risks. It’s not unusual for these garages to have flammable liquids such as solvents and fuel. Repair work may cause sparks from cutting tools or welding equipment. When high-temperature sparks and flames are under the same roof as volatile flammables, fires are a definite possibility.
Auto theft from an unsecured garage or lot is yet another risk. Your clients should run well-organized garages where activities generating high temperatures are carried out in rooms separate from flammable storage areas. They should also implement security measures such as on-premise security systems, cameras, alarms, night lighting, as well as fencing around their lots.
Prime Insurance Company understands the liability risks faced by these businesses.
If you have questions about excess legal liability for the garage, towing, and repossession businesses, please contact us.