Question from an IIABNY member: If I have a co-op or condo building that has a parking garage or lot that is gated and/or there is a charge for the parking spot, does that constitute care, custody and control by the association so that a Garagekeepers Legal Liability policy is needed, since the General Liability policy excludes CCC?
Answer: This turned out to be a pretty interesting question, and my usual reference materials have proven to be not much help with it. The best answer I can give you is that this is a gray area, particularly because the insured is charging drivers to park in the lot or garage. A reasonable person could make a case that charging for parking spots puts the insured in the business of parking cars, which is a garage operation. On the other hand, parking cars is an ancillary operation, not the insured’s primary one.
I think it would be worth having a discussion with the underwriter about adding to the Business Auto Policy endorsement CA 99 37 03 06, Garagekeepers Coverage. This gives Garagekeepers coverage to an insured who does not qualify for a Garage policy. It defines “garage operations” as “the ownership, maintenance or use of locations for the purpose of a business of selling, servicing, repairing, parking or storing ‘customer's autos’…” “Customer’s auto” is “a land motor vehicle, ‘trailer’ or semitrailer lawfully within your possession for service, repair, storage or safekeeping, with or without the vehicle owner's knowledge or consent.” This appears to fit the situation you described. The open question is whether the CGL insurer views the paid parking lot as a garage operation. If yes, then your insured needs to buy this endorsement.
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