Iowa Property & Casualty Practice Exam

The appropriate coverage available for a garage owner in the scenario where a mechanic drops a wrench on a customer's automobile is Garagekeepers coverage. This type of insurance is specifically designed to protect businesses that service or repair vehicles, covering damage to customers' cars while they are in the care, custody, or control of the garage.

Garagekeepers coverage addresses the risks associated with the possession of customers' vehicles. In this case, since the garage mechanic was working on the customer's auto and inadvertently caused damage by dropping a tool, the Garagekeepers policy would respond to cover the repair or replacement of the damaged vehicle.

General Liability primarily provides coverage for bodily injury and property damage caused by the business's operations, but it may not specifically cover damage to a customer's property while it is in the business's possession. Business Auto Coverage is tailored for insuring vehicles owned by the business and does not extend to customers' vehicles that are being serviced. Workers' Compensation is relevant for employee injuries and does not offer coverage for property damage to a customer's vehicle.

This context highlights why Garagekeepers coverage is the most fitting option in this situation.