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How to properly insure your mechanical garage?
A garage owner must have sufficient insurance to prevent all the risks associated with the exercise of this profession. In particular in the event of theft or damage to customers’ vehicles.
In the event that this type of incident is not covered, it is the confidence of customers that will be shaken and by ricochet the reputation of the garage owner and his reputation in the industry. Hence the importance, even the urgency, of subscribing to a garage formula called FPQ4.Il is a cover that insures both the vehicles that are the property of the garage and those that are under its responsibility.
Such insurance can be taken out not only by garages but also hotels offering valet services, car washes, tow trucks, used vehicle dealers, among others. It becomes essential as soon as you are responsible for other people’s vehicles and therefore it would be wise to take out a garage policy.
Garage owner well insured
The law stipulates that car insurance is applicable to structures with entrusted vehicles. If we look closely at this law, we can note the compulsory nature of liability insurance, which is detailed in Chapter A. An article highlights the responsibility of the company that is responsible for the vehicles of others, when they suffer damage or damage. On the other hand, the insurance of the legitimate owner of the automobile becomes optional.
It must be said that the Quebec Policy Form No. 4 is very similar to FPQ1 car insurance and is as follows:
Special conditions
Nature and extent of insurance
Chap A: Civil liability
Chap B: Damage to vehicles belonging to the insured
Division 1: All Risks
Division 2: Collision
Division 3: Comprehensive Accident
Division 4: Designated Risks
Chap C: Civil Liability for Damage to Entrusted Vehicles
Division 1: All Risks
Division 2: Collision
Division 3: Comprehensive Accident
Division 4: Designated Risks
Miscellaneous provisions
General provisions
Endorsements
The section relating to the special conditions contains all the basic information about the insurance contract. And in fact, all of the beneficiary’s establishments must be included. In addition to the details regarding the activity carried out, since the insurance is applicable to vehicles used in the exercise of these activities.
Chapter A refers to civil liability cover, which is triggered to cover material damage or bodily injury caused to others and which involve vehicles owned by the beneficiary or which are under his responsibility but belong to third parties. This insurance is mandatory and cannot be driven on Quebec roads. Moreover, this guarantee is generally indicated by the famous pink cards.
Chapter B deals with the case of damage to automobiles owned by the insured. Such insurance is very similar to the usual automobile warranty , the FPQ1. The only difference is that the garage policy specifies the maximum compensation amounts at the level of divisions 1, 3 and 4 excluding the case of collision. In other words, the insurance policy must specify the total value of the car fleet covered in order to be able to claim compensation in the event of a claim.
This part of garage insurance also highlights the exclusions, particularly in the event of tire damage, mechanical breakdown and any damage related to maintenance unless it is directly related to the insured claim.
For Chapter C, it relates to damage suffered by automobiles entrusted to the insured and therefore under his responsibility. This part has four divisions but also the maximum compensation paid in the event of claims for divisions 1, 2 and 3 excluding collisions.
It is necessary to provide sufficient business insurance to cover all vehicles likely to suffer a disaster such as vandalism or others. It is also necessary to plan for situations where the insured may have more vehicles under his or her responsibility. Such a precaution is very important, so as not to be penalized because of insufficient coverage for the full amount in his possession at the time of the inventory.
Some insurers add a 4-70 FAQ on garage insurance. Such a practice makes it possible to exclude automobiles belonging to the insured in order to reduce the scope of the FPQ4 and the amount of the premium generated.
Garage Vehicle
Obviously, the insured must provide additional insurance to cover his own vehicles by taking out an FPQ1. Thanks to this approach, he will ensure that he has a more attractive bonus. It is obvious that it is better to check with your broker the most advantageous formula or combination of insurance, whether in terms of coverage or rates.
Garage insurer
To conclude, garage insurance has many particularities compared to standard vehicle insurance. It would be wise to talk to your insurer and have more details and clarifications before taking out this policy or using additional car insurance.
Car wash insurance
If you own a car wash, Assur360 can insure your business with advantageous coverage. Our brokers have an excellent knowledge of the risks associated with automatic or manual car washes.
Garage owners in Canada can claim special insurance that covers their business in accordance with their needs and expectations. This type of warranty applies to the garage, repair shop, mechanic garage, tire and car accessory stores, not to mention car washes.
Such professionals will only have to request a quote to immediately obtain offers that correspond exactly to their respective situations. Each garage owner has the possibility to request a quote or quote free of charge and without obligation.
