Not all Garage Keeper’s Policies automatically cover offsite transit movements. Coverage for offsite activities such as test drives or customer service pickup and delivery typically requires specific endorsements or additional coverage options. Here’s a detailed breakdown:

Offsite Transit Coverage in Garage Keeper’s Policies

1. Standard Garage Keeper’s Policies

• Basic Coverage: These policies typically cover vehicles while they are on the premises of the dealership or business. This includes protection against damage due to theft, vandalism, fire, or accidental damage during service.
• Limitations: Basic policies do not usually extend coverage to vehicles that are offsite. For example, if an employee takes a customer’s vehicle for a test drive or to deliver it back to the customer and an accident occurs, the standard policy might not cover the damage.

2. Endorsements for Offsite Coverage

• Transit Coverage Endorsement: This endorsement specifically adds coverage for vehicles while they are being driven offsite by dealership employees. It ensures that any damages occurring during these movements are covered.
• On-Hook Coverage: If the dealership offers towing services, this endorsement provides coverage for vehicles while they are being towed.

3. Types of Offsite Activities Covered with Endorsements

• Test Drives: Coverage for vehicles driven offsite by potential customers during test drives.
• Pickup and Delivery Services: Protection for customer vehicles while they are being picked up for service or delivered back after repairs.
• Towing: Coverage for vehicles that are being towed to or from the dealership.

Assessing Your Coverage Needs

When considering the inclusion of offsite transit coverage in a Garage Keeper’s Policy, dealerships should evaluate their specific operational needs:

1. Frequency of Offsite Movements: If the dealership frequently engages in offsite activities such as customer pickups, deliveries, and test drives, it is essential to have this coverage.
2. Types of Services Offered: Dealerships offering additional services like towing or mobile repairs should ensure they have comprehensive coverage for all aspects of their operations.
3. Risk Management: Implementing robust safety and training programs for employees who handle offsite vehicle movements can help mitigate risks and reduce the likelihood of claims.

Recommendations

1. Review Existing Policies: Dealerships should thoroughly review their current Garage Keeper’s Policies to understand the extent of their coverage.
2. Consult with an Insurance Agent: It’s advisable to discuss specific needs with an insurance agent or broker to ensure all potential gaps are addressed. They can recommend appropriate endorsements and additional coverages.
3. Regular Policy Updates: As the dealership’s operations evolve, regularly updating the insurance policies to reflect new services or increased offsite activities is crucial.

Conclusion

Not all Garage Keeper’s Policies automatically cover offsite transit movements. Dealerships must actively seek endorsements or additional coverage options to ensure they are fully protected during offsite activities. By understanding the limitations of standard policies and proactively addressing coverage gaps, dealerships can safeguard their operations and maintain high levels of customer satisfaction.

DOD works with an industry-leading insurance company that would be happy to give you a free evaluation of your current policy and determine whether the pricing is competitive.