A new law in NJ (N.J.S.A.39:13-2.1) amends the insurance coverage requirements for damage to property and for liability arising from bodily injury which an auto body repair facility must maintain for a full service license. The law reduces the minimum amount of garage keepers’ liability insurance that a shop must maintain from $300,000 to $50,000.
Full service licensed auto body facilities must still maintain insurance coverage for damage to property and for liability arising from bodily injury, including, but not limited to: eligible garage liability or equivalent commercial general liability insurance in a minimum amount of $300,000 or a letter of credit in the amount of $300,000; Garage keepers’ liability insurance in a minimum amount of $50,000 or a letter of credit in the amount of $50,000. Limited full service license applicants and licensees must also comply with these requirements.
“This will make the law fair to the shops by not forcing a small shop to purchase more insurance than it needs,” said Charles Bryant of the Alliance of Automotive Service Providers of New Jersey, which proposed and supported the change.