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MARKEL GARAGE. Non-Admitted Garage. Agent Underwriting Guide Dealer & Non-Dealer (Service/Repair)


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Non-Admitted Garage

Agent Underwriting Guide

Dealer & Non-Dealer (Service/Repair)

(For Agents with Binding Authority)

The Agent Risk Selection Guide and Special Considerations (Non-Admitted),

are also part of this Underwriting Guide and Authority Statement.



THE GARAGE COVERAGE FORM – Provides liability, garagekeepers and physical damage coverages (as selected) for garage operations and automobiles for two basic classes of risks: Automobile Dealers and Non-dealers (service or repair operations). Coverage may be provided for the following:

Liability coverage: for Premises, Operations, Products, Completed Operations and Garage Operations involving the ownership, maintenance or use of covered autos.

Garagekeepers coverage: applicable to loss or damage to a customer’s car: on a Legal Liability basis or without regard to legal liability as Direct Primary coverage. Comprehensive or Specified Perils coverage is available with Collision. Subject to various deductibles.

Physical Damage coverage: applicable to the named insured’s owned automobiles. For dealers, coverage applies to cars held for sale and those used in business. Comprehensive, Specified Perils, Fire only, or Fire & Theft coverages are available with Collision coverage. Subject to various deductibles.

Property coverage: for Building, Business Personal Property and Misc. Property coverages are available as an option, if a package policy is requested.

Medical Payments coverage: is available in two forms. One for autos (CA 9903) and the other for garage operations and locations (CA 2505). Either or both are offered based on policy type.

Uninsured/Underinsured Motorist & PIP (no fault) coverages are available per state statutory requirements.


1. Refer to the Agent Risk Selection Guide to determine risk acceptability.

2. A new venture requires prior experience by owner/manager. Surcharges will apply. 3. Wind or Hail coverage may not be written on ANY account within 50 miles of an ocean,

bay, inter-coastal waterway or coastal waterway. This applies to property and Dealers Open Lot coverages. Optional Wind/Hail deductibles may be applied at underwriter discretion.

4. Terrorism currently applies to property coverage only.

5. MVRs & inspections will be required on new accounts, see page 9.

6. Coverage for Garagekeepers or Dealers Physical Damage is available for either dealers or non-dealers (service/repair options) as shown below.

7. Miscellaneous Liability and Property coverages are also available. 8. Maximum deductible – any coverage – is $5,000.

9. Financials may be required on risks with liability deductibles in excess of $5,000. Garage Liability

• Maximum limit of $1,000,000 per accident.

• Aggregate limits of: 1X, 2X, 3X are available for other than auto.

• Minimum limits offered are $100,000/$100,000/$100,000.

• For Service/Repair: use Symbol 29, 30, or 32.

• For Dealers: use symbol 22, 29, or 30.

• UM/UIM and PIP (no-fault) are available per state statute.

• Medical Payments may be offered for premises, autos or both. Maximum limit is $5,000. Garagekeepers

• Maximum limit of $500,000 per location.

• Symbols 30 or 32 apply.


• We do not use the maximum per vehicle limitation on every account, but will use this endorsement when necessary.

• Aggregate limit options of 3x and 5x. Dealers Open Lot (Physical Damage)

• Maximum limit is $500,000 per location.

• Symbols 31 or 32 apply.

• Coverage may be written with: Specified Perils, Fire only, Fire & Theft, or Comprehensive and Collision.

• Aggregate limit options of 3x and 5x.

• False Pretense is available only with other DOL coverage.

• Symbol 27 applies to service or specified autos. General Liability

• Maximum limit of $1,000,000.

• Receipts over $500,000 – refer to underwriter.

• General rule, use rate of $2.50 per $1,000 of receipts.

• Minimum premium is $250 Flat for GL coverage. No debits or credits apply.

• Related operations – Garage accounts sometimes have incidental operations outside the repair and maintenance of customer’s vehicles. We can include coverage for these under miscellaneous general liability as long as they are not too products/completed operations heavy.

• Refer any risk: with manufacturing or major fabrication of parts, or any other class of business not relating to garage operations.


• Property coverages are optional under this program.

• Square footage of operation should not exceed 5,000.

• Property values should not exceed $750,000 TIV (TIV includes Building, Business Personal Property, Personal Property of Others, Improvements and Betterments and Business Income limits).

• Maximum limit is $500,000 per building.

• Special or Basic Forms are available for Building and BPP. Building age must be less than 30 years or have been fully updated.

• ACV or Replacement Cost is available for Buildings and BPP. 90% coinsurance is required for Replacement Cost.

• Exclude Theft unless Insured has Central Station Burglar Alarm. If theft coverage is provided, we will warrant the Central Station Burglar Alarm.

• Blanket Building and/or Business Personal Property coverage is not available. Values must be scheduled on policy per location.

• Agreed Amount Coverage is not available.

• Refer any building if cost per square foot is below $60.

• Mechanic/Employee Tools. See specific rating elsewhere in guidelines.


The garage coverage form (CA 0005) states which autos will be covered by the use of one or more coverage symbols. These symbols are shown on the declarations page next to the appropriate coverage. The symbols are defined as follows:

21 – Any Auto – This symbol is only available with PLL approval 22 – Owned Autos Only

23 – Owned Private Passenger Autos Only 24 – Owned Autos Other Than Private Passenger 25 – Owned Autos Subject to No Fault

26 – Owned Autos subject to a Compulsory Uninsured Motorists Law

27 – Specifically Described Autos


28 – Hired Autos Only

29 – Nonowned Autos Used in Your Garage Business 30 – Autos Left With You for Service, Repair, Storage or Safekeeping (garagekeepers coverage)

31 – Dealers Autos and Autos Held for Sale by Non-Dealers Or Trailer Dealers (physical damage coverage). 32 – As defined and endorsed to policy


Garage policies are rated differently from other automobile policies. The liability rating is based on the employees and their duties.

Dealer Employees

There are two types of Dealers employees, Class I and Class II.

Class I includes two sub classes. The first group is employees who drive company vehicles. The vehicles may be supplied for their regular use or the employee may be a salesperson who regularly accompanies the customers on test drives. Driver information and a MVR should be reviewed on every Class I employee. A garage operation should have a formal procedure

regarding personal and family use of company vehicles. If family members are permitted to drive, the company must have copies of their MVRs.

The second group of Class I employees are those that work at the dealership but do not regularly use a company vehicle. These would include cashiers, lot runners, mechanics and others. They may occasionally take a vehicle for errands or to move it around the lot, but it is not part of their daily duties and they are not furnished an auto for personal use. MVRs are needed on these individuals because of the possibility of them driving a vehicle.

If the MVR is unacceptable, a driver exclusion may be necessary. However, not all states allow driver exclusions.

Class I – Employees

A. Include family members who are also employees B. Count the following as 1.00 rating units

1. Proprietors, partners and officers active in the business (no charge will be made for silent partners or corporate officers who are not active in the business unless they are furnished an auto for personal use. A charge will be made unless proof of personal auto coverage is obtained)

2. Sales managers, general managers, service managers & salespersons for which an auto is furnished

3. Any other employee whose principal duty involves the operation of autos or who is furnished an auto

C. Salespersons NOT furnished autos are counted as .50 rating units

D. All other employees, including clerical, mechanics, lot persons etc. are counted as .40 rating units

E. Excluded employees are rated at ½ the applicable rating unit

All spouses must be either rated for, or excluded. If excluded, proof of personal auto insurance must be provided.

Class II – Non-employees are those who are furnished with a dealer’s auto but are not

employees. These are not defined but the factor varies if the driver is older or younger than 25 years old. This may be used to supply family members with vehicles for personal use. It is important to get a list of each Class II driver and obtain MVRs. Careful review of the reasoning of adding them to the policy is important.


Class II – Non-employees

A. Include any individual, other than those described in Class I who is regularly furnished with a dealer’s auto

B. If more than one person has the use of the same furnished auto, use only the factor for the highest rated operator in determining rating units

C. Count non-employees with a furnished auto as follows: 1. Under age 25 count as 1.15 rating unit

2. Age 25 and over count as 1.00 rating unit D. Resident family members NOT furnished an auto:

1. Age 15-18 – must be excluded

2. Age 19 and over – must provide proof of personal auto insurance or the applicable rating units of “C” above will be charged

Another type of driver for a dealership is that of a temporary or contract driver used exclusively for transport of vehicles to and from auto auctions or other locations from which inventory is purchased or sold. If the insured is providing the dealer or transporter plates, each driver must be screened as if they were a full time employee furnished a vehicle and an MVR is needed. Refer to underwriter for specific rating.

• The minimum rating units allowed for a single location is 1.50 and is 1.00 per location for risks with more than one location.

• Minimum premium is $1,500 for Dealers.

Rating of Non-dealer (service/repair) Employees

Liability Rating is based on an “established” annual payroll of $5,200 per employee. This is used for full-time owners and employees.

A. Payroll is $5,200 per full-time employees and owners B. Part-time employees may be charged at $2,600 payroll C. Minimum payroll is $10,400

D. Minimum premium is $1,200 for service/repair

E. Refer to underwriter for any minimum payroll or premium concessions

Minimum earned premium of 25% applies to all policies. This percentage may be increased at underwriter discretion.


Physical Damage (Dealers Open Lot coverage will be classified as Standard, Non-Standard or Building using the following definitions:

Standard – Open parking or storage lots enclosed on all sides by a metal cyclone or Equivalent fence not less than 6 (six) feet in height or bound on one or more sides by the wall or walls of a building, with no unprotected openings, and with the exposed sides of the lot enclosed by a metal cyclone or equivalent fence not less than 6 (six) feet in height, with openings securely locked with unattended

Non-Standard – All other locations or unroofed spaces, which include buildings not securely enclosed and locked when not attended

Building – All autos stored inside secured buildings


Stand Alone Garagekeepers and Stand Alone Dealers Open Lot are available. Minimum premiums are $750 for GKL, and $1,000 for DOL.



We consider a submission complete when the agent includes the following:

Completed Application – We accept any Company Garage or Dealer application for quote, but require a signed Markel Company application once coverage is bound. Acord applications will not be accepted as complete and valid Garage applications.

MVRs – Submit most current MVRs available.

Loss Runs- We require 3 year loss runs for all submissions.

List of Drivers/Employees – A complete list of employees; including dates of birth, job titles (mechanic, bookkeeper, owner etc), if they drive autos as part of their job, and/or if they are furnished an auto for personal use. Also advise if they are fulltime or part time employees.

Rating Worksheets – Include Markel Garage rating worksheets. (Applies only to agents with web rating access.)

Miscellaneous Information

• A Narrative outlining the applicant’s operation is helpful, especially if there are other ancillary operations conducted on the applicant’s premises.

• Include the expiring premium or target pricing.

• If supplemental applications are noted in the Risk Selection Guide – forward them along with the completed Garage or dealer application.

If we receive incomplete information – you may not receive an accurate quote or you may receive a declination for incomplete information. Do not ask us to “guess” at the limits or coverages desired by your applicant.



• For Non-dealers, Standard BI/PD, BI, and PD Deductible is $500. Standard Completed Operations Deductible is $100.

o Optional Deductibles $1,000, $2,500, $5,000.

o For new ventures use $1,000 BI/PD & Completed Operations Deductible.

• For Dealers, deductible is optional, unless defined in Special Considerations.

• New venture surcharge 1.25.

• Class of business surcharge – see agent risk selection guide and special considerations.

• Other (Schedule) surcharges – refer to underwriter.

• MVR surcharges:

Violation Surcharge

Seatbelt or Child Safety Seat 0% Cell phone violations (over 2 per year) 5%

1 Speed * 0%

2 Speed * 5%

3 Speed * 10%

More than 3 moving violations Refer

*Up to 15 mph over

Excessive Speed (over 15 mph) 15% each violation

Accident (unless proved NAF) 10% each accident

DUI Refer

Reckless Driving Refer

Careless Driving Refer

Leaving the Scene Exclude – no exceptions

Please refer, with an explanation, any of the following: o Operating without a valid license

o Driving while suspended o Any other major violations

Motor vehicle reports must be ordered on every driving employee and owner Definitions:

Violations: All violations not defined as a conviction, major violation or accident. Charges for defective equipment violations may be waived if it is clearly indicated that neither the driver involved nor the prospective insured was responsible for the defect.

Accident: All accidents will be considered AT FAULT unless a police report indicating NAF is received. When an accident is combined with a violation, only those points for the accident will be applied.

Major Violations: Any of the following will be considered as major violations: o Driving under the influence of alcohol, drugs or similar offenses

o Hit and run/leaving the scene of an accident o Reckless driving

o Driving on a suspended license

o Improper license for type of vehicle operated o Speed contest

o Any felony violation



Mechanic/Employee Tools

Broad From

Rates per $100 of Value (EXG-508)

Blanket Coverage $1,000 Deductible

Up to $25,000 per scheduled location

$5,000 per employee $2.75

Up to $50,000 per scheduled location

$5,000 per employee $2.50

Over $50,000 per location or over $5,000 per employee, refer to underwriter

Maximum value per item $1,000 – any item over $1,000 must be scheduled Minimum Premium $150

No debits or credits apply to rating

In-Transit (On-Hook)/Cargo Coverage

Up to $100,000 per vehicle in tow Rates applied per $100 of value

$1,000 Deductible

No debits or credits apply to rating Specified Perils (EXG-504)

Up to $10,000 per vehicle $3.25

$10,000 - $25,000 per vehicle $2.75

$25,001 - $50,000 per vehicle $2.45

$50,001 - $75,000 per vehicle $2.10

$75,001 - $100,000 per vehicle $1.70

Over $100,000 per vehicle is not acceptable

Option: EXG509, Collision of Covered Property, may be added. Refer to underwriter for specifics.

Garagekeepers – On-Hook – For Auto Repair Operations

• Limit per vehicle must be lower than the overall Garagekeepers Limit

• Garagekeepers Coverage may be written on a LEGAL LIABILITY basis only

• Coverage may be written for risks towing private passenger and light to medium trucks to be repaired at the insured’s repair facility only

• Risks towing more than a single vehicle are unacceptable

Transporter Plates:

Refer all service/repair accounts with this coverage request to underwriter

Refer any coverage, limit, or deductible not shown, to your




1. A current list of employees is required for all accounts. The information must include dates of birth, license number, use of covered auto, job duty, and full or part time status of employee.

2. Drivers must be at least 21 years of age. Younger drivers are subject to prior approval by company underwriter.

3. Drivers over 75 are subject to prior approval by company underwriter. A medical statement may be required or driver may be excluded.

4. Drivers over 80 do not fit our guidelines.

5. Drivers must have at least three years experience and must be properly licensed (CDL if necessary).

6. Driver exclusions may be used to exclude unacceptable drivers, other than owners. 7. Driver exclusions are not permitted for individual owners, or principals. If their

MVRs are unacceptable, the account must be declined.


Inspections must be ordered on all new accounts except:

1. A Non-dealer (service/repair) risk with an annual premium less than $1,500. 2. A dealer that is 100% wholesale auto sales and no dealers open lot.

For all renewals, an inspection will only be required every 3 years unless one of the following applies. In those cases, a new inspection will be required.

1. A change in the insured’s operation. 2. A theft loss during the policy term. 3. A loss ratio over 40%.

4. The renewal has been referred for any reason.


• Any risk not appearing in the Risk Selection Guide.

• Any risk in the Risk Selection Guide indicating class is a “refer”.

• Risks with a current or 3 year loss ratio in excess of 45%.

• An annual premium over $10,000.

• Policy pricing/schedule rating outside of what has been established by your company underwriter.

• Risks with a single loss over $10,000.

• Risks with more than 1 loss in the current year and more than 3 in the last 3 years.

• Any Liability limit over $1,000,000 occurrence $2,000,000 aggregate, garage or general liability.

• Any Property TIV over $750,000.

• Any Garagekeepers or Dealers Open Lot limits over $500,000 per location, or over

$75,000 per auto.

• Any deductible over $2,500.

• Risks within 50 miles of Ocean, Bay, Coastal or Inter-coastal Waterways.

• Any risk in an area prone to wind, hail or flood for property or DOL coverage.



Additional Insureds

o CA 2048 – Designated Person or Organization o CA 2509 – Owners of Garage Premises We do not offer blanket additional insureds

Waiver of Subrogation

EXG 436 – Waiver of Subrogation - may be added to an account where required by contract (obtain copy of contract to verify).

We do not offer blanket waiver of subrogation

Related Operations

EXG 435 – Garage Coverage for Related Operations – may be added to an account with incidental operations.

Broadened Coverage Endorsement

CA 2514 – Fire Legal is included at $50,000. Optional limits are available.

Fire Legal Liability

CA 2510 - Should not exceed limit of $100,000, unless required by contract. Obtain copy of contract to verify.

Personal Injury Liability

CA 2508 – May be written alone or under CA 2514 – Broadened Coverage Endorsement.

False Pretense

CA 2503 – This endorsement gives coverage for “trick & device”.

Broad Form Products

CA 2501 – This endorsement eliminates the products defect exclusion in the policy. There is a $250 deductible in place before coverage begins.

Individual Named Insured – Dealers Only

CA 9918 – When the named insured is an individual, this endorsement extends coverage to the spouse of the named insured (if a resident of the same household). This

endorsement should not be used as a replacement for a personal auto policy.

Covered Auto Designation Symbol

CA 9954 – This endorsement may be used to add a covered auto symbol to the garage policy by manuscripting coverage for a type of unit not included in the regular covered auto definitions.

Dealers Physical Damage Plus Endorsement

ECA 042 – MANDATORY – This form eliminates the deductible applied when auto glass is repaired rather than replaced. The deductible is reduced by ½ in the event of a hail loss when a paintless dent removal system is used to repair the vehicle. This form also eliminates the 50 mile radius exclusion for collision.

Business Income Actual Loss Sustained

ECP 027 – This form modifies the coverage for a business income loss. See actual endorsement for details.

Mechanical, Electrical or Pressure Systems Breakdown Extension

ECP 031 – This form modifies coverage part CP0010, CP1010 and CP1030 with respect to coverage and additional conditions. See actual endorsement for details.


Commercial Property Extension

ECP 015 – This form modifies coverage as outlined in CP0010. Please review the actual endorsement for details.

Stop Gap Coverage

ECA 021 – This endorsement is available only in certain states. It provides employers liability to those states where workers’ compensation coverage is provided by the State. Please refer the account to the company underwriter for approval and pricing.

Dealer’s Insurance Agents Errors & Omissions Endorsement

ECA 014 – This form provides coverage when the insured becomes legally obligated to pay, caused by a negligent act, error or omission resulting from operations as an

“insurance agent” in connection with the garage business.

Dealer’s Title Errors and Omissions Endorsement

ECA 015 – This form provides coverage when the insured becomes legally obligated to pay damages because of errors or omissions on titles for automobiles and/or motor vehicles sold by the insured.

Dealer’s Truth In Lending Errors and Omissions Endorsement

ECA 016 – This form provides coverage when the insured becomes legally obligated to pay damages because of the unintentional violation of any Federal or State Consumer Credit Act, or similar statute, law or ordinance.

Odometer Alteration Liability Endorsement

ECA 017 – This form provides coverage when the insured becomes legally obligated to pay damages because of failure to comply with the mileage disclosure requirements provided by state or federal statutes, laws or ordinances that protect consumers in motor vehicle sales.



ALL ACCOUNTS (Existing and Quotes) BORs will be accepted only if they:

1. Are on the insured’s letterhead or Acord BOR form.

2. Are signed by the principal of the business or the employee designated to make insurance decisions

3. Are received: at least 5 days prior to expiration for existing accounts, and at least 5 days in advance of inception for quotes.

4. Contain both retail and wholesale agency information if applicable. 5. Include a complete submission.

If the above items are not met, the BOR will not be accepted.

ADDITIONAL BOR GUIDELINES BORs will not be accepted for midterm change of agent.

We will advise the controlling agent of receipt of BOR and give them 5 business days to get a rescinding letter. If the controlling agent waives the waiting period we will release to the new agent prior to the 5 business day guideline. Only the controlling agent can waive the 5 day waiting period.

There may be extenuating circumstances under which an account cannot be taken over by BOR. In the event you are attempting a BOR on such an account, you will be advised by the Company upon receipt of your BOR.




• Flat – The effective date of cancellation is the same date as the effective date of the policy. The total policy premium is returned. Flat cancellations require Company approval.

• Pro Rata – The policy is cancelled after the effective date of coverage due to one of the following reasons:

o Company Request

o Non-Payment of premium to agent

o Rewritten in the same Company or Company group o Underwriting reasons

• Short Rate – The policy is cancelled after the effective date of coverage at the insured’s request. Short Rate is defined as 90% of the Pro Rata premium.


In order to process cancellations, send one of the following to your Company underwriter

• Policy Release form (Acord 35) signed by the insured or an authorized representative.

• Cancellation Request letter signed by the insured or an authorized representative requesting cancellation and including reason for cancellation (coverage replaced – business closed etc). A copy of the insured’s declarations page must accompany the insured’s request letter.

• Cancellation request must be received within 30 days of the requested cancellation date. PREMIUM FINANCE COMPANY CANCELLATIONS

• All finance company cancellations must be handled on a priority basis.

• The policy must be cancelled as of the date specified in the finance company notice as the finance company has power of attorney to request such cancellation.

• The unearned premium will be calculated on a pro rata basis, subject to any minimum earned endorsements included in the policy – the lesser of the two premiums will be returned.


Nonrenewal notices will be processed according to individual State Statutes. See the State specific Cancellation & Nonrenewal forms in the policy for complete information.



• The Company is not required to reinstate a policy at the request of the finance company. Reinstatement is at the sole discretion of the Company and/or its’ authorized

representatives (refer to your agency agreement). Before any decisions can be made, the file must be reviewed. A reinstatement will not be granted if there is adverse underwriting information or if the policy has been set up for nonrenewal.

• If payment to the finance company was received prior to the effective date of cancellation, coverage may be reinstated after review of the file.

• If the cancellation endorsement has already been processed by the Company, the agent must obtain Company approval for reinstatement before discussing with the insured.

• If payment to the finance company or agent was not received before the effective date of the cancellations, coverage may only be reinstated with a “no loss” letter from the insured and Company underwriter approval. The Company reserves the right to deny

reinstatement and require a new submission for any account.

• Policies should not be reinstated if the payment was received 10 or more days after the effective date of the cancellation.

• Reinstatement with a lapse is not permitted.

Accounts will not be reinstated more than twice within a single policy term.


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