Subletting and car storage insurance

[Shaun @ Tru6]

I'm moving to a new shop big enough that I can both store cars and owner will let me sublet as well.

I have company insurance of course but who is responsible for sublet or car storage? Do I include this on my insurance or they have to have to insurance, both or something else?

[LWJ]

Here are my thoughts. Mind you, I work about 5% so that where I was sharp in the past, I am rusty now and not super excited about my rambling answer.

1. There is a specific policy for exactly what you want: a garage keepers policy. It is the appropriate coverage for this. You may find it cost prohibitive.

Other things to consider:

2. Have a professionally written agreement that the folks storing sign. This will have the sublet person indemnify you as well as carry XXX amount of liability insurance. If these are expensive cars, insist on large limits.
3. Get a copy of their insurance.
4. Have the agreement state that you are not insuring the value of the autos and that this is the responsibility for the auto owner.

Run this past a good lawyer. It’s a start.

If you were my client, I wouldn’t be super excited to have you take on this exposure.

Also, what happens when a car has an electrical failure and everything goes up in flames? This happened in Vancouver to a large boat storage facility.

What could the total damages be?

Sorry to be Debbie downer. My brain is wired to see the worst having been in commercial insurance a while.

[Dantilla]

Renters must have insurance, listing your shop as additionally insured.

[Shaun @ Tru6]

Originally Posted by LWJ

Here are my thoughts. Mind you, I work about 5% so that where I was sharp in the past, I am rusty now and not super excited about my rambling answer.

1. There is a specific policy for exactly what you want: a garage keepers policy. It is the appropriate coverage for this. You may find it cost prohibitive.

Other things to consider:

2. Have a professionally written agreement that the folks storing sign. This will have the sublet person indemnify you as well as carry XXX amount of liability insurance. If these are expensive cars, insist on large limits.
3. Get a copy of their insurance.
4. Have the agreement state that you are not insuring the value of the autos and that this is the responsibility for the auto owner.

Run this past a good lawyer. It’s a start.

If you were my client, I wouldn’t be super excited to have you take on this exposure.

Also, what happens when a car has an electrical failure and everything goes up in flames? This happened in Vancouver to a large boat storage facility.

What could the total damages be?

Sorry to be Debbie downer. My brain is wired to see the worst having been in commercial insurance a while.

Very detailed, great information, thank you! A good blueprint for me.

On things like cars burning up, no battery left in the car policy. Comes out, pics taken, gets labeled and put on a shelf.

[Shaun @ Tru6]

Originally Posted by Dantilla

Renters must have insurance, listing your shop as additionally insured.

Thank you. I will keep proof of insurance in a folder.

[speeder]

Don't leave the folder in said shop. It will burn up in the fire.

[fintstone]

Congrats on your company's growth! Must be doing something right.