Craig had to drive Candice’s car in order to reset the check engine warning light after he repaired it. He received her permission to drive 60 miles in order to pick up his son and reset the engine warning light. The check engine light might have reset but the vehicle unfortunately sustained further damage when he rear-ended a vehicle driven by Jeanette and Gloria who then sued his employer, among others.

Craig’s employer, Gabe’s Auto, notified its auto and general liability carriers of the accident. Charter Oak, its general liability carrier, refused to provide any coverage because it was an auto accident. Gabe’s argued that there was coverage because it was a garage operation and Craig was driving a customer’s auto. Charter Oak pointed out that driving a customer’s auto is covered but only when on premises or next to it.

The question was: How close is “next to it”?

Click here to learn how the court ruled.

General liability policies provide auto liability coverage for very specific operations because the coverage would virtually not exist without it. For example, garage operations must drive a customer’s auto in order to work on it. As a result, coverage is provided but it is limited.

Click here to review the PF&M analysis of the CGL aircraft, auto or watercraft exclusion.

Restaurants, bars, nightclubs, hotels, and other businesses often offer valet services for their customers and appreciate this limited automobile coverage under their general liability policies. However, many of these valets are not employed directly by the entity that offers the service. Valet services are often contracted out to entities that specialize in it and they have their own coverage needs.

Click here to review a narrative that describes valet services.

Valet parking services can provide a win-win for the businesses that hire them. They provide the business’s customers with a much needed service. Valets are hired, trained, and monitored by an organization that focuses on their unique exposures. They also provide certificates of insurance and contractually reduce the liability of the businesses that hire them.

Coverage for a valet parking service may be difficult to place. An experienced broker can identify potential gaps in coverage and the markets that can fill them.

Click here to read about valet parking services and the markets interested in working with you to provide the necessary coverage.