Insurance for Auto Detailing & Mobile Auto Detailing Businesses
As owner of auto detailing company in Los Angeles http://www.monsterautodetailing.com finds that is very important to have a plan to open an auto detailing business with a stationary location or start a mobile auto detailing business. It is important to have insurance to protect your business and your personal assets. This type of insurance is really not that expensive, if you are not properly insured and an unforeseen event occurs it could put you out of business and you could very quickly lose your personal assets.
The most popular insurance for these types of businesses is called Garage Keepers Liability. Even if you own a mobile detailing business this is the type of policy you want to have. You want to be covered while you are working on a vehicle and while the vehicle is in your possession. When getting a quote for a policy premium you want to also be sure you are getting coverage for moving, picking up and delivering the vehicles you will be working on. Even if you plan on opening a mobile detailing business you still need coverage for moving the vehicle even if it is only moving it from the garage to the driveway. You never know what could happen!
You will also want to have your equipment insured against theft. Pressure washers, carpet extractors, vapor steamers, buffers, polishers, compressors and generators are not cheap and it is critical to insure them too. The cost to insure this type of equipment it not very expensive at all so it is a “no brainer” to have it included with your policy premium. Usually you will get a quote for a minimum of $100,000 of liability coverage. Typically you want to get quoted on $300,000, $500,000, and a million dollar umbrella policy. Believe it or not the premium cost is not that much more for $500,000 worth of coverage versus only $100,000. People are “law -suite happy” today and you can never be “underinsured.” Most good garage keeper’s liability policy packages cover the vehicle you are working on against damage and theft, coverage for your equipment and coverage for pick-up and delivery of any vehicle.
If you are operating a mobile detailing business your premium costs will be lower than operating out of a shop. You will incur a higher premium operating from a stationary location due to needing coverage for fire, vandalism, signage, glass, and usually more property contents than a mobile detailing operation. If you lease the building your landlord’s insurance company will want specific amounts of coverage. A typical premium for $500,000 worth of coverage for a mobile detailing operator is about $1800 per year or $150 per month. Most agencies require a 20 percent down payment to start the policy. If you plan to operate your business at a stationary location your premium costs will probably be up to 25 percent higher.
If you plan on having employees you will most likely have to pay Workman’s Compensation insurance. This will protect you and your employee in the unlikely event that an injury occurs while working on the job. Your insurance agent can quote you for this too. In many cases for small businesses your State may actually provide you workman’s compensation insurance. Be sure you are “rated” properly from the beginning. You are not a repair shop of mobile repair business so be sure they do not rate you that way or your workers compensation rates will be very high and it will take a long time to get your rating changed. Most auto detailing businesses that have employees are rated “auto laundry” for workers compensation insurance. Auto laundry is one rating above car washing but a few levels beneath auto repair. Have your agent give you a quote on this insurance, too. If you are the only individual and have no employees you may not need workers compensation insurance. You must check with your State or insurance agency, this article is intended just to give you a good overview of what you should consider and look for with regards to insurance for this industry. It is up to you to make sure you have done your homework and are properly insured.
You should get at least 2 or 3 quotes and compare costs and coverage’s. It is not a bad idea to contact an insurance brokerage house that deals with many different carriers. You want a carrier with an A, A+ or A- rating. Typically the insurance carriers that write these types of premiums are also writing premiums for body repair shops, car washes, limousine companies and other automotive types of businesses. Start with your personal insurance company and see if they can give you a competitive quote. If they cannot they should be able to refer you to an agency that can. You should “shop” your policy every 2 to 3 years, put it out there and get a quote! This will keep your insurance agent honest and help protect you from paying too much. There are many companies that will write Garage Keepers Liability policies and be competitive. Fireman’s Fund, American States, Travelers, State Farm, American Fire, Ohio Casualty are just a few that I have heard are interested in auto detailing and mobile auto detailing business policies.
As your business grows your insurance coverage needs will change. You may need additional coverage when working at airports, parking structures, parking lots of office buildings, condo properties and at car dealerships. As a mobile detailing operator you should always have a copy of your policy in your mobile rig just in case a property manager wants to confirm that you have the correct amount of coverage to be working on that particular commercial property. As you hire employees be sure to have your insurance carrier check their driving record before you put them behind the wheel of a customer’s vehicle. If they have a poor driving history you may not be able to extend an employment offer to them or not allow them to move any of your customer’s vehicles. Your own driving record can also play an important role with regards to premium costs. Please contact me if you have any questions about this article.
