Key Takeaways
- The GARAGE COVERAGE FORM is designed for auto dealers, repair shops, and service stations—it combines liability for premises, operations, AND vehicles in a single form.
- GARAGEKEEPERS COVERAGE is ESSENTIAL for any business that takes custody of customers' vehicles—it provides bailee coverage for customer cars in the insured's care.
- The TRUCKERS COVERAGE FORM is designed for long-haul trucking operations—it uses the same symbols as the BAP but with trucking-specific endorsements.
- The MOTOR CARRIER COVERAGE FORM is for truckers operating under federal Motor Carrier Act authority—it meets ICC/FMCSA filing requirements.
- Garagekeepers coverage has THREE options: LEGAL LIABILITY (only if negligent), DIRECT PRIMARY (pays regardless of fault), and DIRECT EXCESS (over customer's own insurance).
Last updated: December 2025
Garage and Truckers Coverage Forms
Garage Coverage Form
Who Needs It?
The Garage Coverage Form is designed for businesses whose primary operation involves autos:
| Business Type | Examples |
|---|---|
| Auto Dealers | New/used car dealerships |
| Repair Shops | Auto mechanics, body shops |
| Service Stations | Gas stations with service bays |
| Storage Garages | Parking structures with custody |
| Public Auto Parks | Valet, parking lots |
Policy Structure
The Garage form combines:
| Coverage Section | What It Covers |
|---|---|
| Garage Operations - Covered Autos | Liability for owned vehicles |
| Garage Operations - Other Than Covered Autos | Premises and operations liability |
| Garagekeepers Coverage | Customer vehicles in care |
| Physical Damage | Own vehicles and inventory |
Covered Autos Symbols (Garage)
| Symbol | Description |
|---|---|
| 21 | Any Auto |
| 22 | Owned Autos Only |
| 23 | Owned Private Passenger |
| 24 | Owned Other Than Private Passenger |
| 25 | Owned Autos Subject to No-Fault |
| 26 | Owned Autos Subject to Compulsory UM |
| 27 | Specifically Described Autos |
| 28 | Hired Autos Only |
| 29 | Non-Owned Autos Used in Business |
| 30 | Autos Left for Service/Repair |
| 31 | Dealers Autos (inventory) |
Garagekeepers Coverage
What It Covers
Garagekeepers Coverage is bailee coverage for customers' autos:
| Covered | Examples |
|---|---|
| Theft | Customer's car stolen from lot |
| Fire | Fire damages cars in garage |
| Vandalism | Break-in damages to customer cars |
| Collision | Employee damages car during service |
Three Coverage Options
| Option | Pays When | Best For |
|---|---|---|
| Legal Liability | Insured is negligent | Cost-conscious businesses |
| Direct Primary | Regardless of fault | Customer relations priority |
| Direct Excess | After customer's insurance | Middle ground |
Legal Liability Only
| Feature | Details |
|---|---|
| Coverage Trigger | Must prove insured was negligent |
| Advantage | Lower premium |
| Disadvantage | Coverage disputes possible |
Direct Primary
| Feature | Details |
|---|---|
| Coverage Trigger | Any covered loss |
| Advantage | Pays first, no fault required |
| Disadvantage | Higher premium |
Direct Excess
| Feature | Details |
|---|---|
| Coverage Trigger | Any covered loss |
| Payment Order | After customer's own insurance |
| Use | Fills gaps in customer coverage |
Truckers Coverage Form
Who Needs It?
For businesses primarily engaged in trucking operations:
| Business Type | Examples |
|---|---|
| For-hire trucking | Common carriers |
| Private carriers | Company-owned fleets |
| Owner-operators | Independent truckers |
| Intermodal | Container transport |
Key Differences from BAP
| Feature | Truckers Form | BAP |
|---|---|---|
| Target Market | Trucking industry | General commercial |
| MCS-90 Endorsement | Available | Not applicable |
| Trailer Interchange | Specific provisions | General |
| Motor Cargo | Can include | Separate policy |
Trailer Interchange Coverage
| Coverage | Purpose |
|---|---|
| Physical damage | To non-owned trailers |
| Under written agreement | Interchange agreements |
| Scheduled | Specific trailers listed |
Motor Carrier Coverage Form
Purpose
For truckers requiring federal filings:
| Requirement | Details |
|---|---|
| FMCSA Authority | Interstate commerce |
| MCS-90 Endorsement | Proof of financial responsibility |
| BMC-91X | Surety bond alternative |
MCS-90 Endorsement
| Feature | Details |
|---|---|
| Purpose | Guarantee payment to injured public |
| Minimum Limits | $750,000 or $1,000,000 (depends on cargo) |
| Scope | Only for accidents involving public |
| Exclusions | Cannot exclude covered accidents |
BMC-91X
| Feature | Details |
|---|---|
| Type | Surety bond |
| Purpose | Alternative to MCS-90 |
| Requirement | For truckers without insurance endorsement |
Key Exam Points
- Garage form: Combines auto AND premises liability
- Garagekeepers: Three options—Legal Liability, Direct Primary, Direct Excess
- Symbol 31: Dealer's autos (inventory)
- MCS-90: Required for interstate truckers
- Motor cargo: Separate coverage for cargo damage
Loading diagram...
Test Your Knowledge
A customer's car is stolen from an auto repair shop parking lot. The shop has Garagekeepers Coverage with Direct Primary option. How does the coverage respond?
A
B
C
D
Test Your Knowledge
Which covered auto symbol on the Garage Coverage Form specifically covers a dealer's auto inventory?
A
B
C
D
Test Your Knowledge
What is the purpose of the MCS-90 endorsement on a Motor Carrier Coverage Form?
A
B
C
D
Up Next
10.1 Workers Compensation Overview
Chapter 10: Workers Compensation
Get free exam tips·