What types of coverage does the garage liability coverage form of the CPP provide?

The garage liability coverage form within a Commercial Package Policy (CPP) is specifically designed to provide comprehensive protection for businesses that operate in a garage setting, such as auto repair shops, car dealerships, and service stations. This type of coverage includes both premises liability, which protects against injuries and damages that occur on the business premises, and bailee coverage, which protects the business from liability for damage to customers' property that is in their care, custody, or control.

Premises liability addresses situations where a customer may be injured while on the property, for example, due to a slip and fall incident. Bailee coverage comes into play when a business has possession of a customer's vehicle for servicing or storage and that vehicle is damaged or lost due to circumstances for which the business is responsible. This twofold protection is crucial for garage operations that frequently deal with customer-owned vehicles and the potential liabilities associated with them.

Other options fail to encompass the full range of liabilities covered under the garage liability form. For instance, focusing exclusively on property damage or bodily injuries does not acknowledge the unique aspects of liability that the garage form provides, particularly the importance of bailee coverage in the industry. Similarly, stating that the form covers only theft and vandalism overlooks the broader protections designed for