Locations covered by Garage Liability

General Auto Insurance Declarations

Locations Covered. In addition to showing the business address to which correspondence (including cancellation notices) is to be sent, the insured must also show the locations of all other premises and branch offices at which he conducts operations. This is necessary so that (1) proper inspection of all exposures can be made, (2) the correct territorial rates can be applied, and (3) all payroll data can be properly checked and audited. The contract provides blanket protection at all premises “operated by the named insured for the purposes insured hereunder,” and to this end all locations must be made known to the insurer.

Coverages and Hazards. There are four coverages available with general auto insurance to the insured bodily injury liability, property damage liability, automobile medical payments, and collision damage liability to property of others in charge of the named insured. These are identified, respectively, as coverages A, B, C, and D. As to coverages A and B, the insured has three divisions of hazards to choose among. Division 1 covers premises, operations, and automobiles owned by the garage, as well as those not owned. A sales agency would undoubtedly select Division 1 in order to cover new and used cars for sale and also demonstrator cars. Division 2 is like Division 1 except that it does not cover “any automobile owned or hired by the named insured.” This would be suitable for storage garages, service stations, and repair shops, where the need for blanket insurance exists primarily toward non-owned cars.5

If insurance is occasionally required by such risks on owned equipment, such as a tow truck or a three-wheeled motorcycle used in pick-up and delivery service, it can conveniently be provided on a specified car basis. The payroll rates for Division 2 are, of course, substantially lower than those for Division 1. Division 3 of “Hazards” concerns elevators. Elevators are found in the larger multistory metropolitan sales agencies and storage garages. The term does not apply to the use of servicing hoists, which would be covered as part of the premises hazard under the other divisions.

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