What is False Pretense Coverage?

As the owner of a garage and auto body shop, it is critical to be aware of the risks that your business could be faced with on an everyday basis. While concentrating on hazards and possible injuries are both important, it is also important to think outside of the box at times. When is the last time you thought about the consequence if the wrong person picks up a vehicle? While this may not be AS common as an employee injury in your shop, it is still a risk to consider!

This is where false pretense coverage comes into play. Have you heard of it?

False pretense coverage is an endorsement that is available to shop owners on their garage insurance policy. It is designed to cover a loss that is caused when someone causes you or an employee to voluntarily part with a vehicle by trickery, scheme or false pretense or when the vehicle acquired from a seller who does NOT have the legal title or the right to transfer title.

Whether a customer says they will be “test driving” the vehicle and never returns or the customer pretends to be someone that they are not, your garage will be held responsible for this loss if you do not have false pretense coverage in place.

To learn more about this type of coverage, contact our agents at Wolpert Insurance. Our experts would be more than happy to go into further depth with you and of course, provide you with a free quote.