Commercial General Liability vs. Garage Policy Insurance
I’m in the process of launching a mobile RV trailer repair business in Alberta, Canada, and I’m currently working with my broker to secure the necessary commercial insurance. However, my broker is uncertain whether I need a garage policy or if general liability coverage would suffice, and they are obtaining quotes without including the garage policy.
From my understanding, a garage policy is meant for situations where a customer’s vehicle is in my care—like when it’s in my shop or lot, during test drives, or while being transported. Essentially, it covers any instance where I have a customer’s vehicle while they aren’t present.
In my case, I’ll be performing a variety of services, including carpentry, plumbing, electrical work, propane line installation, roofing, window repairs, and flooring—essentially tasks typically done in a home, but on RVs instead. Most of my work will take place with the customer present, usually at campgrounds or their residences. Additionally, many of the trailers I’ll be servicing are not even registered as vehicles since they’re situated on permanent lots and rarely move.
With all of this in mind, do I really need a garage policy?
It sounds like you’re in the process of navigating the complexities of commercial insurance for your mobile RV trailer repair business. Your understanding of the garage policy’s coverage is mostly accurate. A garage policy typically provides broader coverage for businesses involved in the repair or maintenance of vehicles, particularly when those vehicles are in your care, custody, or control.
Since your business will primarily operate at customer locations—doing repairs with the customer present and often on trailers that may not be registered as vehicles—the need for a garage policy may not be necessary. However, there are a few factors to consider:
Nature of Work: Since you’re providing services that don’t involve keeping customer vehicles in your shop or doing extensive test drives, a general commercial liability policy may be sufficient for your needs.
Property Damage: If there is a chance that your work could cause damage to the RVs (like inadvertently causing leaks during plumbing work), having a comprehensive general liability policy is essential.
Customer Vehicles: If you do occasionally keep customer trailers or RVs in your care for any extended period, you might want to discuss a garage liability policy to cover potential risks associated with that.
Consult with Your Broker: Make sure your insurance broker understands your specific operations in detail. They might be able to provide tailored advice based on your unique situation and help ensure that there’s no coverage gap.
In summary, if you’re primarily working at customer locations with their presence, a general liability policy may suffice. However, be thorough in discussing your operations with your broker to ensure you have adequate coverage for any potential risks. It may also be worth seeking quotes for both options to see which best meets your needs and budget.