Auto liability insurance covers damages or injuries you may cause to others while driving a company vehicle. It’s essential for businesses that own and operate vehicles, like automotive repair shops or window tinting services with mobile units. This policy protects you financially if one of your employees causes an accident on the road.

However, if your business doesn't own vehicles but your employees drive their own cars for business purposes or you rent vehicles, you’ll need non-owned and hired auto insurance. This coverage protects your business if an employee causes an accident while driving their personal vehicle for work or if an accident occurs in a rented vehicle.

Garage liability insurance, on the other hand, is designed specifically for businesses that service, sell, or store vehicles. It provides coverage for accidents or damages that occur on your premises, or while working on a customer’s vehicle. If a customer’s car is damaged while in your care or a customer is injured at your shop, garage liability helps cover those expenses.

Imagine one of your employees is driving their personal car to pick up parts for a repair job and accidentally rear-ends another car. Non-owned auto liability would cover the damages to the other vehicle. If a customer slips in your shop and is injured, garage liability would step in to cover that claim.

Knowing which coverage you need ensures your business is financially protected no matter what happens on or off the road.