Which type of coverage is designed to protect vehicles owned by a garage?

The type of coverage that is specifically designed to protect vehicles owned by a garage is Physical Damage Coverage. This coverage is essential for garages as it provides protection against risks such as collision damage, theft, vandalism, and other incidents that could cause physical harm to the vehicles.

Garages often hold various vehicles for repair, maintenance, or storage, making it critical to have a policy that covers the potential physical damage those vehicles may face while in the garage's care. This ensures that the garage can manage its financial risks effectively should an incident occur.

Other coverage types, while relevant in different contexts, do not directly serve this purpose. Bailee's Coverage, for instance, is related to the responsibility a business has for items they are temporarily holding but does not specifically refer to owned vehicles. General Liability Coverage provides protection against third-party claims for bodily injury and property damage but does not cover vehicle damage directly. Workers Compensation Coverage is intended to provide benefits for employees who are injured on the job and does not address vehicle protection. Thus, Physical Damage Coverage is the appropriate choice for protecting vehicles owned by a garage.