Garage insurance

How do you insure your garage?

A garage owner needs to have sufficient insurance to cover all the risks associated with this profession. In particular, in the event of theft or damage to customers' vehicles.

If this type of incident is not covered, customer confidence will be undermined, and with it the garage's reputation and standing in the trade. That's why it's so important, and even urgent, to take out FPQ4 garage insurance, which covers both garage-owned vehicles and those for which the garage is responsible.

Such insurance can be taken out not only by garages, but also by hotels offering valet services, car washes, towing companies and used vehicle dealers, among others. It's essential when you're responsible for other people's vehicles, so it's a good idea to take out a garage insurance policy.

Well-insured garage

The law stipulates that auto insurance must be taken out on structures with entrusted vehicles. A closer look at this law reveals the mandatory nature of liability insurance, which is detailed in Chapter A. One article underlines the responsibility of the company in charge of other people's vehicles, should the latter suffer damage. On the other hand, insurance for the rightful owner of the vehicle is optional.

The Formule de Police du Québec no 4 is very similar to a FPQ1 type of car insurance and is presented as follows:
Special conditions
Nature and scope of insurance
Chap A: Civil liability
Chap B: Damage to owned vehicles
Division 1: All risks
Division 2: Collision
Division 3: Comprehensive accident
Division 4: Designated risks
Section C: Third-party liability for damage to entrusted vehicles
Division 1: All risks
Division 2: Collision
Division 3: Comprehensive accident
Division 4: Designated risks
Miscellaneous provisions
General provisions

Endorsements

The special conditions section contains all the basic information on the insurance contract. In fact, all the beneficiary's establishments must be listed. In addition to details of the activity carried out, given that the insurance applies to vehicles used in the course of these activities.

Chapter A deals with third-party liability coverage, which is triggered to cover material damage or bodily injury caused to others and involving vehicles owned by the beneficiary or under his responsibility but belonging to third parties. This insurance is mandatory, and without it, you can't drive on Quebec roads. In fact, this coverage is usually indicated on the famous pink cards.

Chapter B covers damage to automobiles owned by the insured. Such insurance is very similar to car warranty the usual FPQ1. The only difference is that the garage policy specifies maximum indemnity amounts for divisions 1, 3 and 4, excluding collision. In other words, the insurance policy must specify the total value of the fleet covered, in order to qualify for compensation in the event of a claim.

This part of the garage insurance also outlines exclusions, notably for tire damage, mechanical breakdown and any maintenance-related damage unless directly related to the insured loss.

Section C covers damage to automobiles entrusted to the policyholder's care and therefore under his or her responsibility. This section includes four divisions, as well as the maximum indemnities payable in the event of a claim for divisions 1, 2 and 3, excluding collision.

You'll need a sufficient business insurance to cover all vehicles liable to damage, such as vandalism. It is also important to anticipate situations where the insured may have more vehicles under his or her responsibility. This is a very important precaution, to ensure that you are not penalized for insufficient coverage for the full amount in your possession at the time of inventory.

Some insurers add a FAQ 4-70 to garage insurance. This practice excludes automobiles owned by the insured, thereby reducing the scope of the QOF4 and the premium generated.

Garage vehicle

Obviously, the insured must take out additional insurance to cover his own vehicles, by taking out a FPQ1. This will ensure a more attractive premium. Obviously, it's best to check with your broker which insurance formula or combination is the most advantageous, both in terms of coverage and rates.

Garage insurer

In conclusion, garage insurance has a number of special features compared withstandard vehicle insurance. It's a good idea to talk to your insurer and get more details and clarifications before taking out this policy or resorting to supplementary car insurance.

Car wash insurance

If you own a car wash, Assur360 can insure your business with advantageous coverage. Our brokers have excellent knowledge of the risks associated with automatic and manual car washes.