TRENTON – The Senate approved a bill 31-4 which requires the minimal amount of insurance auto body shops must have to obtain a full service license.
The bill, S2590, requires auto body shops in the state to carry at least $300,000 worth of garage liability insurance and at least $50,000 worth of garage keepers’ liability insurance.
According to the bill, garage liability insurance protects garage owners from liabilities arising out of their business operations, and garage keepers’ liability insurance protects garage owners against liability for damage to vehicles they worked on or were under their supervision, and were damaged by such things as fire, theft or vandalism.
The bill was sponsored by Sen. Steve Oroho, (R-23), of Sparta, who called it a “common sense” measure.
But Sen. Nick Scutari, (D-22), of Linden, urged members to vote against it, calling it “simplistic,” saying the $300,000 figure is too low, especially for body shops with several bays.
Sen. Shirley Turner, (D-15), of Trenton, voted for it, saying it would provide insurance relief to small business owners.