Garage Liability is a "named driver" type of policy. If someone other than a casual user such as a prospective customer uses your vehicle, he must be named as an insured on your policy. There are basically three (3) major classes of coverage offered under the category of garage insurance policies.

A. Garage Liability: Required by the State (minimum $25,000). This type of insurance provides third-party protection only. That is, it protects other people and their property against accidental injuries caused by you and your employees. It will not pay anything for injuries to you, your employees, your vehicles or your property. The fact that you have the required limits ($25,000) of coverage does not mean that someone can't bring suit against you for a higher amount. Generally, your insurance agent will offer you limits of $30,000 instead of $25,000 as indicated by DMV. The reason is: Florida law requires financial responsibility of $30,000 coverage for any person involved in an accident. Since dealers sometimes have accidents it is wise to buy the higher limits to stop obvious claims arising from the lower limits of $25,000.

B. Dealer Open Lot: Not required by the State. However, this is physical damage (comprehensive and collision or possibly Specified Risks) coverage that is designed to repair or replace vehicles in your inventory when an accident or disaster happens to a vehicle belonging to your dealership. As an option, you could save a little money on Dealer Open Lot insurance by buying specified perils instead of comprehensive coverage. But, you should be aware that the major difference between the two is that the cheaper specified perils coverage does not pay for glass damage and some other perils. Normally, Dealer Open Lot coverage is good for a radius of no more than 50 miles when you are making a pick-up or delivery of a vehicle unless you select a policy from a company that allows for a larger radius. Usually this increases the cost of coverage

C. Garage-keepers coverage: Not necessarily required by the State for used car dealers. Provides protection for damage to a customers vehicle while it is in your possession being repaired. Your regular garage liability insurance would not repair customers vehicles that are in your custody or control. Service stations and repair shops should certainly have garage-keepers coverage.

There are a number of rules and restrictions which you must be aware of when considering a Garage policy. Most of them are just good old common sense, such as: keep vehicle keys in a secure place. Don't leave keys in vehicles. Dont let customers take a test drive unless one of your employees is in the car with him. Dont let animals such as pets or guard dogs run loose in your office or lot. There are some things not covered under a garage policy without an endorsement. A partial list of things normally NOT covered is:

car phones
motorcycles (unless your policy specifically allows them)
tractor/trailer rigs
signs
workers compensation
computer equipment
employee dishonesty
buildings and real estate
separate business owned or operated by insured
contents of buildings or vehicles
tow trucks or car transporters (must be specifically insured - no dealer plates)
acts of animals, dogs, etc.
car carriers
rental or leasing operations
voluntary parting (letting them drive alone)
leasing operations
liquor sales/service
retail delivery (commercial use)
employees families unless named on policy specifically
public conveyance (for hire)
Transporter plates

You may buy other types of policies or endorsements for additional coverage to make your garage policy more complete. Temporary paper plates issued to your own dealership for pick-up or delivery may not be covered. Ask your insurance agent for more information.