Page 140 - Microsoft Word - NEW 2017 Standard Program.docx

Garage Keepers Coverage
This portion of the policy responds to claims of damage to the recovered collateral while
in the Recovery Agency’s CARE, CUSTODY and CONTROL. This coverage is for
physical damage to the recovered collateral, such as theft, vandalism, mischief, fire and
explosion.

Example: The recovered collateral has been towed to the Recovery Agency’s storage
facility. During the night the collateral is stolen and two other vehicles are vandalized. If
a claim is filed, the Garage Keepers section of the policy would apply. It is extremely
important to know that there are three coverage options within the Garage Keepers
section:

qq Legal Liability
qq Direct Excess
qq Direct Primary

Rather than go into a lengthy explanation of these different coverage options, suffice it to
say that Direct Primary is the most comprehensive and quickest to respond and the
recovery agency owner should insist upon this coverage. Ask your insurance agent to
provide you with a detailed explanation of each coverage option.

On-Hook Coverage
You have repossessed the collateral and are towing it to your storage facility. The collateral
breaks loose from the tow truck and crashes into a telephone pole, causing extensive
damage. The On-Hook coverage would respond to a claim in this situation.

Drive-Away Coverage
Simply stated, this coverage responds to claims made as a result of repossessing the
collateral by driving it away, rather than taking it by tow truck.

Example: In the process of driving the collateral out of the debtor’s driveway, the
Recovery Agent runs into a vehicle parked at the curb. Claims for damages will be
addressed by the Drive-Away coverage.

Personal Effects Coverage
This coverage responds to claims of personal property missing from the recovered
collateral. How many of us have been accused by a disgruntled debtor of stealing her
cash or $10,000 diamond ring, even if the collateral was left parked on the street by the
debtor, with its doors unlocked and windows down. This is one of the primary reasons
why it is important to have a specific procedure for the inventorying, storage and protection
of personal property. In Forms, Section 13 of this program you will find a document
to be used when a debtor makes such accusations. This form should dissuade the filing
of a false claim of missing personal property.