General Auto Insurance Rates and Garage Liability Policy

General Auto Insurance Rates for $49/month

To overcome all these weaknesses, the Garage Liability Policy was developed. Its chief characteristics are these:
(l) It covers all automobiles, owned and non-owned, on a blanket basis (that is, without description on the policy and without any need to report changes to the insurer).
(2) It assesses a premium charge not on the customary basis of insured automobiles as units of exposure but on the payroll developed by the risk at all insured locations. This is necessary in view of the fact that no record of automobiles is required under the blanket insurance provided. Theoretically, of course, the larger the payroll, the more employees there will be and hence the greater will be the exposure to loss from operations and the use of premises and automobiles.
(3) It includes a measure of bailed liability protection should customers’ cars be damaged by collision while in the custody of the garage.
(4) It provides protection not only against automobile liability but also against liability arising out of premises, operations, products, and elevators.

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The Garage Liability Policy in its standard provisions form dates back to 1936, the same year that the standard BAP provisions were promulgated. It is therefore one of the earliest attempts to meet the over-all needs of a business by combining different insurance coverages in a single package policy. However, it is purely liability insurance and is not to be confused with the combination forms of automobile liability and physical damage insurance to which we have now become accustomed in analyzing the FAP and the BAP. It is necessary for automobiles sales agencies to purchase separate insurance in order to obtain fire, theft, and collision coverage on automobiles owned and held for sale by the agency.
The general plan of the Garage Liability Policy (hereafter referred to as the “GLP”) is the same as that of the BAP declarations, agreements, exclusions, and conditions. And identical language and provisions have been used in the two contracts wherever possible. Since we are already familiar with the significance of such terms and coverages as legal obligation for damages, bodily injury liability, defense of suits, supplementary payments, medical payments, policy period, limits of liability, notice of accident, cancellation, and so on, the discussion in this chapter will be centered primarily on the ways in which the GLP has been especially adapted to meet the needs and hazards peculiar to the garage risk.
At the conclusion of the GLP analysis, the principal garage physical damage contracts will be presented and discussed.

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