Florida Insurance Licensing 2025 – 400 Free Practice Questions to Pass the Exam

A Garage Policy is specifically designed for businesses that operate a garage, such as auto repair shops, service stations, and car dealerships. It offers a bundle of coverages tailored to the unique risks associated with these types of businesses.

The correct coverage under a Garage Policy includes the protection of customer's property while it is in the garage's care, custody, and control. This means that if a customer brings their vehicle in for a service or repair, and that vehicle is damaged while in the garage's possession, the policy provides the necessary coverage for the repair or replacement.

By focusing on customer property, the Garage Policy addresses one of the significant risks faced by garages, ensuring that they are protected from liability issues related to damaged vehicles or possessions that they are temporarily holding for service or repair. Thus, option B is a critical aspect of what a Garage Policy covers.

In contrast, while employee injuries might suggest the need for worker's compensation insurance, a Garage Policy itself typically does not cover this. Similarly, although the garage location is important for the operation of the business, the policy does not provide coverage simply because of the garage's physical location; it addresses specific liabilities and risks inherent to garage operations instead. Product recall, while a concern for manufacturers, is also generally