Garage Policy and Coverage for Repair Work

Our insured is a repair facility. The insured completed work on the timing belt of a customer's car, but apparently did the repair work improperly. This led to damage to other parts of the engine. Would there be coverage under the insured's garage policy for the resulting damage to the engine? Would the coverage extend to the repair of the timing belt? And if there is coverage for the claims, which deductible would apply? Would it be the comprehensive or collision deductible, or would it be the $100 deductible noted in the garage liability section of the policy?

Georgia Subscriber

The “work you performed” exclusion on the garage policy applies only to the property damage to the work that the named insured actually did. This means that the damage done to the timing belt is not going to be covered by the policy, but the resulting damage to the other parts of the car engine will be covered. This is in keeping with the liability policy intent to apply to damage to another's property caused by the insured, but not to apply to damage to the insured's work itself caused by his improper or negligent work.

As for the deductible, the policy notes that the insurer will deduct $100 from the damages in any one accident resulting from property damage to an auto as a result of work that the named insured performed on that auto. So, the $100 deductible will be applied to the payment for the property damage done to the auto by the insured. The comprehensive and collision deductibles apply to physical damage coverage to covered autos, not to liability claims.

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