Garagekeepers Coverage and Valet Parking

The insured maintains valet parking for customers. The weather was hot, so the valet driver lowered the window on the customer's car, without the customer's consent. The window would not go back up when the car was returned to the customer, likely due to age/wear and tear of the power window.

The insured has direct primary coverage under a garagekeepers endorsement, so I believe coverage would apply; however, my supervisor feels this is not owed due to age/wear and tear exclusion. What is your opinion?

Ohio Subscriber

There is no wear and tear exclusion on the garagekeepers coverage endorsement. And, since the insured has purchased direct primary coverage, the coverage applies without regard to the insured's legal liability for the loss. The direct primary insurance is purchased by the insured to act as a goodwill gesture to customers so that claims such as this can be paid without any resort to long-term legal battles and disputes over legal liability. This claim should be paid; the policy does not provide any reason to deny coverage.

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