This policy fulfills the special needs of auto-related firms such as yours. The policy provides coverage for liability, medical payments, and physical damage for owned and nonowned vehicles. Additional coverages can be purchased to customize the policy to fit the particular needs of your business.

Add'l Insured - Lessor (CA2001)
This endorsement is used to extend your auto coverage to provide primary protection for an entity with ownership interest, such as a lease vehicle. This is required because the standard auto insurance only protects nonowned autos on an excess basis, thereby leaving owners of such vehicles uninsured for primary protection. Back to top

Broad Form Products (CA2501)
This endorsement is used to provide coverage for property damage to products you sell in excess of a $250 deductible. It is needed because standard forms exclude losses that arise out of defects that exist at the time a product is sold or transferred to another. Back to top

Broadened Definition of Vehicle
This endorsement is used to modify your policy to cover several additional types of non-vehicular units (such as boats, farm machinery, etc.), which you may have in your care, custody, or control for parking, storage, servicing or sale. Back to top

Broadening End. Used (CA2514)
This endorsement is used to modify the Garage policy to include several liability coverages not provided under the standard form. These include Fire Legal Liability, Personal Injury, Host Liquor Liability, Incidental Malpractice, Nonowned Watercraft, Additional Persons Insured, Automatic Coverage For Newly Acquired Business, and Limited Worldwide Products coverage. Back to top

CGL Added
This insurance is written to provide you with coverage for any non garage related activities or operations in which you might be involved. This is important because your standard Garage policy is not designed to insure such incidental exposures. Back to top

Collision Coverage
This coverage is used to insure against loss or damage to a covered vehicle resulting from collision or upset. Back to top

Comprehensive Perils Coverage
This coverage is used to insure against loss or damage to a covered vehicle resulting from loss excluding collision or upset. Back to top

Contractual Liability
This coverage is used to insure against bodily injury and property damage claims arising out of the liability of others that you assume in an "insured contract" as defined in the policy. Back to top

Dealers Legal Defense Coverage
This coverage is used to insure against claims brought against you during the policy period for damages arising out of the sale, service or repair of your products other than as a direct result of an accident. This coverage differs from standard products coverage since resulting damage caused by defective work or product need not occur. Back to top

Dealers PD - Adequate Limits
As part of your risk management program, we have reviewed your flooring obligations as it relates to your insurance coverage. This is necessary since your policy requires you to insure 100% of the flooring value you have on your lot. If you fail, or elect not to do so, you may be subject to a substantial coinsurance penalty in case of a loss. Back to top

Dealers PD - Non-Reporting Form
When dealers physical damage is written on a Non-Reporting Form basis, it means that coverage, in case of a loss, is based on the limit stated in the policy. It is important that you set this limit at the highest potential total loss value of all covered autos during the policy period. Failure to do so could result in a coinsurance penalty in case of a loss. Back to top

Dealers PD - Reporting Form
This form is the most economical way to insure flooring where values fluctuate from month to month. With it, you pay only for the amount of coverage actually needed. The limit of insurance is set high enough to cover the maximum potential total value of all covered autos during the policy period. You pay a deposit premium and then make reports of your actual values as of the last day of the reporting period. The deposit is credited to your final report premium. Back to top

Dealers Physical Damage (CA0007)
This coverage is used to provide protection for any vehicles you own which are held for sale, or used in your business. No coverage applies to vehicles you rent to others, except those rented to a customer while such customer's vehicle is temporarily left with you for service or repair. Besides your interest, the interest of creditors and owners of consigned vehicles can be included. Back to top

Drive Away Collision (CA2502)
This endorsement is used to extend your vehicle physical damage coverage to insure against collision loss for autos driven or transported more than 50 road miles from their point of purchase to their final destination. Back to top

Drive Other Car Coverage (CA9910, CA9917, CA9918)
This endorsement is used to protect employees or other specified individuals when they borrow or rent cars for personal use, and do not have the protection of a Personal Auto policy. Back to top

Employment Practices Coverage
This coverage is used to provide protection against lawsuits by employees alleging wrongful discharge, discrimination, harassment or other specified employment related exposures. Back to top

Ext. Repair & Repl. Coverage
This coverage is used to extend your policy to provide specified coverage for costs related to labor or parts you incur when you personally do repairs to your stock that is damaged by a covered loss. This is important since most policies exclude reimbursement for expected profits that result from the replacement or repairing of of an insured's own property. Back to top

Extended Bodily Injury
This provision is used to extend your liability coverage to insure against bodily injury claims arising out of the use of reasonable force while protecting persons or property. Back to top

Extended Broad Form Products
Standard Broad Form Products insurance only provides coverage for defective products after possession is relinquished by a dealer. This endorsement can be used to modify the wording of this endorsement so that it also applies to the Garagekeepers Section of a Garage policy, thus picking up coverage for defective products before possession is released. An example of such a claim might involve damage that occurs during a test drive of a repaired vehicle. Back to top

Extended False Pretense Coverage
Standard false pretense coverage limits protection to property to which a dealer has legal title. This endorsement can be used to extend this wording so that false pretense coverage will apply to all property where a dealer may be responsible, yet have no legal title, such as consigned property. Back to top

Extended Personal Injury Coverage
This endorsement is used to extend your personal injury liability coverage to insure against loss from several exposures not currently covered under your present policy. Back to top

False Pretense (CA2503)
This coverage is used to insure against loss caused by a person who entices you to part voluntarily with a covered auto by trick, scheme or false pretense as long as you have legal title to it prior to the loss, or from your acquiring an auto from a seller who did not have legal title. Back to top

Faulty Work Coverage
Standard Broad Form Products coverage only applies to defective products and not completed operations. This discrepancy has often lead to claims problems when trying to define what is defective work verses what is defective product. This endorsement is used to eliminate this situation by buying back the standard Garage Liability's "faulty work" exclusion to insure this type of exposure. Back to top

Fellow Employee Excl. Deleted
This endorsement is used to extend your Liability protection to insure against claims filed by one employee against another for alleged negligent acts. This exposure is excluded in your standard policy since it is intended for this type of claim to be insured under your Worker's Compensation coverage. Generally, states allow employees the right to not only claim compensation, but also maintain their right to sue third parties for damage. Unfortunately, in many states there is no clear definition of what is a third party and therefore, a suit could potentially be brought against an employee as a third party. Back to top

Fire Legal Liability (CA2510)
This coverage is used to insure against your legal liability arising from fire damage to structures rented to you or temporarily occupied by you with permission of the owner. Back to top

Garage Liability (CA0005)
This coverage is used to insure against liability claims arising out of your garage operations including the use of automobiles. Coverage also applies to your products or completed operations exposures subject to a deductible of $100 per claim. Back to top

Garage Medical Payments (CA2505)
This coverage is used to pay for medical expenses incurred within one year of the date of an accident for persons who sustain injury while
occupying any auto used by you, through operations conducted by you, or while on your premises. This coverage helps to maintain your business goodwill by paying medical expenses incurred by others, without having to prove legal liability. Back to top

Garagekeepers Coverage
This insurance is used to insure against claims arising out of damage to vehicles owned by others which are left with you for storage, service, safekeeping or repair. Back to top

Garagekeepers Incl. Customer's Sound Receiving Equip. (CA9959)
This endorsement is used to extend your policy to provide coverage for loss to sound receiving equipment in customers' autos left in your care for servicing, repairing, parking or storing. Back to top

Haul Away Coverage
This endorsement is used to extend the coverage provided under your Auto policy to include loss resulting from collision or upset of a vehicle while transporting one of your covered autos. This is needed since standard Physical Damage coverage excludes these perils, not uncommon in dealership situations. Back to top

Insurance Agents E & O
This coverage is used to insure against loss resulting from your acts or omissions that arise out of the performance of professional services while acting in the capacity of an insurance agent. Back to top

Interim Car Coverage
This insurance will respond when your customer buys a car and sustains damage on it before getting insurance. If he walks away after the sale, the policy will provide coverage. This is necessary because your Dealers Physical Damage policy stops coverage on any vehicle after the sale and delivery, without regard to financial arrangements. Back to top

Leasing/Rental - 2nd Level (CA2014)
This coverage is used to provide excess protection over the amount required of your lessees, or as excess coverage over your own primary
coverage if you are providing primary protection on your leased vehicles. Lessees are not afforded coverage under this endorsement. Back to top

Leasing/Rental - Contingent Liability (CA2009)
This coverage will act as excess over primary insurance, or drop down as primary coverage, if a lessee's liability insurance lapses. It is used as additional protection when you are involved in rental or leasing operations, and require that your lessees provide primary insurance coverage. The amount recoverable is the lesser of the amount of the lease or the amount specified on the endorsement. Back to top

Leasing/Rental - Contingent PD
This coverage is used to provide contingent physical damage protection for a lessor when a lessee fails to maintain required physical damage insurance. Back to top

Leasing/Rental - Conversion (CA2010)
This coverage is used to insure against loss to a covered auto due to theft, conversion, embezzlement or secretion by any renter or lessee. This differs from the usual definition of theft which is defined as an act committed by a person not having prior possession of an auto. Back to top

Leasing/Rental - Scheduled Auto (CA2013)
This coverage is used to insure the different classes of automobiles that you own, rented or lease. Under the form, separate limits of coverage are provided for autos: (1) where a lessee is required to provide primary coverage, (2) where a lessee is not required to provide direct primary coverage, and (3) that are owned by you that are not subject to a leasing or rental agreement. Back to top

Liability Exclusions
The following are several liability exclusions found in your policy.

(1) Liability arising out of operations, products or services which are not necessary or incidental to a garage business.
(2) Intentional acts.
(3) Employee injury or liability under Workers Compensation.
(4) Property damage to property in your care, custody or control.
(5) Liability arising out of an auto which is leased or rented to others, except customer rentals when their auto is in your shop.
(6) Contamination or pollution. Back to top

Limited Specified Perils Coverage
This coverage is used to insure against loss to a covered vehicle resulting from fire, explosion, theft, windstorm, hail, earthquake, flood, and the sinking, burning, collision or derailment of any conveyance transporting the covered auto. Back to top

Mechanical Breakdown Coverage
This insurance is used to cover the costs to repair or replace listed parts, for a stated period of time, due to mechanical breakdown or failure. It is written as excess coverage over the manufacturer's new product warranty. Back to top

Mobile Home Contents (CA2016)
This coverage is used to insure your personal property while located within your mobile home. This is necessary because the Mobile Home
Physical Damage insurance does not cover these items within the policy's definition of coverage. Back to top

Mobile Home Dlrs Physical Damage
This form is used to cover the actual inventory of your manufactured homes. Separate limits are shown for on-premises exposures, while in
transit, or temporarily at other locations such as exhibitions or shows. Back to top

Modified Leased/Rented Automobile Exclusion
Standard Garage policies are designed to exclude coverage for damage to leased vehicles. This is commonly done because most carriers prefer to transfer the usage exposure to the lessee and supplement this risk transfer with a separate BAP policy to provide a dealer with contingent or excess protection. The problem with this approach is that many dealers not only sell leased cars but also engage in servicing them. This endorsement can be used to provide protection for this exposure by extending the Garage policy to insure leased vehicles as if they were any other third party car while they are being serviced or repaired. Back to top

Non-Registered Vehicles Endorsement Added
This coverage is used to extend your Business Auto policy to include specified coverage for any covered auto or trailer while using registration plates described in the endorsement. Back to top

On Hook (in-tow) Coverage
This coverage will protect against your legal liability for loss to a vehicle by a covered peril while in tow to or from your operations. Back to top

Owners of Garage Premises Endorsement Needed (CA 2509)
This endorsement is used to add a landlord as an additional insured with respect to their potential liability arising out of the ownership, maintenance, and use of that part of a premise that he or she leases to you. Back to top

Personal Injury (CA2508)
This coverage is used to extend your garage policy to include protection against claims resulting from alleged false arrest, libel, slander, malicious prosecution, or wrongful entry or eviction. Back to top

Pollution Transportation (CA9955)
This endorsement is used to extend your Garage policy to cover liability arising out of sudden or non-sudden release of pollutants that are being transported, towed by, handled, stored, disposed of or processed in or upon a covered vehicle. However, covered is not provided for any liability assumed under contract, or for some types of government ordered testing or cleanup operations. Back to top

Premium Basis (Dealers)
The premium for Garage Liability is based on the number of employees in your business and non-employees who are furnished a vehicle for
regular use. This is estimated at inception and subject to audit upon expiration. These persons are classified as follows: Class I Regular Employees - including active proprietors, partners and officers; all salespersons, general managers, service managers; and any employee who regularly drives or is furnished an auto. Class I Other Employees - including all employees not included as Class I Regular Employees. Class II - Non-employees under age 25 who are regularly furnished an auto. Class II - Non-employees age 25 or over who are regularly furnished an auto. Back to top

Premium Basis (Non-Dealers)
The premium for Garage Liability is based on payroll. This is estimated at inception and subject to audit on expiration. Proprietors, partners and officers are charged at a fixed payroll amount of $100 per week. Premiums for all other employees is based on the actual payroll, subject to a maximum of $100 per week. Back to top

Punitive Damage Coverage Incl.
Liability coverage can be written to include protection for claims arising out of punitive damage awards. This is important since many state statutes today make punitive damage a very real hazard. Back to top

Racing Exposure Reviewed
As part of your risk management program, we have reviewed your operations for any racing activities you may be involved in including servicing and sponsorship. This is important because your standard policy excludes coverage for any auto while used or being prepared for racing, stunting or demolition event activities. Back to top

Rental Cars - Loss of Use Damage
This endorsement is used to extend your Auto coverage to include protection for "loss of use" charges billed by a rental car firm when a vehicle you have rented from them is damaged by a covered peril. Back to top

Repossessed Autos (CA2019)
This endorsement is used to modify the Auto policy to provide automatic liability and physical damage coverage for any repossessed autos you might acquire. Back to top

Residual Guarantee Coverage
This policy is used to protect lessor's and/or lending institutions against unexpected decline in market value of leased vehicles upon termination of lease agreements. Back to top

Sound Receiving Equip. (CA9960)
This endorsement is used to provide coverage for electronic equipment that receives or transmits audio, visual or data signals other than equipment designed solely for the purpose of reproducing sound. Back to top

Specified Perils Coverage (CA9914)
This coverage will insure against loss to a covered vehicle resulting from fire, explosion, theft, windstorm, hail, earthquake, flood, malicious mischief or vandalism, and the sinking, burning, collision or derailment of any conveyance transporting the covered auto. Back to top

Statute Law E & O Coverage
This coverage is used to protect you against claims involving your failure to comply with one or more federal, state or local laws. This is needed because standard liability insurance normally excludes coverage for errors and omissions of this kind. Back to top

Tapes & Records Coverage (CA9930)
This endorsement is used to extend your Automobile policy to include specified coverage for tapes, records or discs used with permanently
installed sound equipment in covered vehicles. Please note that loss must occur inside a covered vehicle and only applies for property owned by you or your family members. Back to top