How to Read Insuring Agreement

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The wording of the GLP with respect to bodily injury and property damage liability coverage is identical with that of the BAP except that where the latter refers to the ownership, maintenance, or use “of the automobile” the former refers (under Division 1) to the ownership, maintenance, and use of :
• The premises for the purposes of an automobile sales agency and all operations necessary or incidental thereto
• Any automobile in connection with the above defined operations (general auto insurance quote)
1. This is the first of the three hazards covered under Division 1 and may be illustrated by several examples. (a) During a windstorm a sign is blown off the roof of the garage and strikes a pedestrian. (b) A chain hoist used to lift engines from their mountings is improperly secured and comes off its overhead rail striking and seriously injuring a customer who was waiting to have his car repaired, (c) Because of icy conditions, a passerby slips and falls on the sidewalk in front of the garage. (In connection with the last-mentioned example it should be noted (i) that “premises” is defined as including the “ways immediately adjoining” but that (ii) insurance does not apply to the premises or to any part of them unless they are used for the purposes of a garage.)
2. Operations. Liability arising out of operations is covered, provided that they are “necessary or incidental” to the ownership, maintenance, or use of the premises as a garage. Customers frequently like to watch mechanics at work. In one instance, a pan containing gasoline in which parts were being cleaned suddenly ignited, and the mechanic, reacting spontaneously, threw it over his shoulder, seriously burning a customer. Pedestrians might be injured in the course of incidental repairs being made in or on the building housing the garage or by snow removal operations on the parking space adjacent to the garage.

Get general auto insurance quotes Now! Injuries may also arise from automobile repairs affected at a customer’s premises or on the road at the site of a breakdown. For example, in the course of getting a car back on the road at the scene of an accident, a towing cable was stretched out to the wreck, and a spectator tripped over it and was injured. Protection in all these cases would be afforded under operations coverage.
A very important aspect of operations coverage concerns products liability. If an accident occurs away from the premises because of a faulty part installed by the garage in a customer’s car or because of faulty workmanship in repairing or servicing it, the resulting products liability would also be covered under operations.

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