The Professional Insurance Agents of New Jersey Inc. on Monday supported a bill that would provide needed clarification regarding the type of liability coverage required by licensed auto-body repair facilities.
In testimony before the state Senate Commerce Committee, PIANJ Legislative Representative Leon Zimmerman noted that the legislation would require these facilities to purchase garage liability insurance, instead of garage keepers’ liability insurance.
Currently, auto-body repair facilities are required by law to maintain insurance coverage for damage to property and for liability arising from bodily injury in a minimum amount of $300,000 and garage keepers’ liability in a minimum amount of $50,000.
“This change makes sense because garage liability insurance covers a facility’s exposure to both property damage and bodily injury liability for all operations necessary or incidental to the business operations,” Zimmerman said. “Since the goal of the insurance requirement is to protect the public from a damages resulting from the operations of an auto repair facility, it is appropriate to require repair facilities to carry garage liability, as opposed to garage keepers’ liability insurance, which only provides coverage for damages to a customer’s vehicle left in the care, custody or control of the repair facility.”
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