What does the Garage Coverage Form provide protection for in commercial auto policies?

What does the Garage Coverage Form provide protection for in commercial auto policies?

• A. Liability for bodily injury caused by vehicles
• B. Liability for property damage because of vehicles
• C. Business income losses due to personal injury
• D. Both A and B

Answer: (C)

The Garage Coverage Form is designed specifically to provide insurance protection for businesses that operate garages or similar establishments, such as auto repair shops or dealerships. This coverage is crucial because it addresses specific risks associated with the operation of vehicles in a business setting. The correct choice encompasses the idea that the Garage Coverage Form provides liability for bodily injury and property damage caused by vehicles. This form would typically cover incidents such as injuries to customers in the garage or damage to third-party property as a result of the use of vehicles. These liabilities are essential for business protection, as they can result in substantial financial exposure if not adequately addressed. In contrast, the notion that the Garage Coverage Form covers business income losses due to personal injury does not align with its intended purpose. Business income coverage and personal injury are generally associated with different types of insurance forms. Therefore, the correct understanding of the Garage Coverage Form focuses on its liability coverages related to bodily injury and property damage stemming from ongoing vehicle operations in a business context.

The Garage Coverage Form is designed specifically to provide insurance protection for businesses that operate garages or similar establishments, such as auto repair shops or dealerships. This coverage is crucial because it addresses specific risks associated with the operation of vehicles in a business setting.

The correct choice encompasses the idea that the Garage Coverage Form provides liability for bodily injury and property damage caused by vehicles. This form would typically cover incidents such as injuries to customers in the garage or damage to third-party property as a result of the use of vehicles. These liabilities are essential for business protection, as they can result in substantial financial exposure if not adequately addressed.

In contrast, the notion that the Garage Coverage Form covers business income losses due to personal injury does not align with its intended purpose. Business income coverage and personal injury are generally associated with different types of insurance forms. Therefore, the correct understanding of the Garage Coverage Form focuses on its liability coverages related to bodily injury and property damage stemming from ongoing vehicle operations in a business context.