Garagekeepers Coverage for Theft of Vehicle
Our insured is an auto dealer and has a garage coverage form with garagekeepers coverage. The insured has presented a claim for the theft of a customer's vehicle that was left in the insured's care for a consignment sale.
If the insured had physical damage coverage under symbol 31, we could see coverage for the consigned auto since it was held for sale by the insured under a written consignment agreement. But, the insured has physical damage coverage subject to symbol 28, hired autos only. Since there is no physical damage coverage for the stolen car, would the garagekeepers coverage apply? Are autos left on consignment with the insured covered by garagekeepers insurance?
West Virginia Subscriber
The coverage under the garagekeepers section of the garage policy applies to all sums that the insured legally must pay as damages for loss to a customer's auto left in the insured's care while the insured is attending, servicing, repairing, parking, or storing that car. In this case, it can be said that the insured was either attending (that is, looking after or taking charge of) or storing the customer's auto. So, if the insured is legally liable for the loss and has the appropriate cause of loss (either comprehensive or specified cause of loss) coverage, the garagekeepers coverage will apply. There is no exclusion to prevent such coverage, except a loss due to theft by the named insured or employees, and presumably, this is not the case.
This premium content is locked for FC&S Coverage Interpretation Subscribers
Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
- Quality content from industry experts with over 60 years insurance experience, combined
- Customizable alerts of changes in relevant policies and trends
- Search and navigate Q&As to find answers to your specific questions
- Filter by article, discussion, analysis and more to find the exact information you’re looking for
- Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected]