Detailing Business Insurance

[Laguna]

So, I've been shopping around for insurance for a detailing business.

 

I've called one of my insurances, State Farm, and my bank, USAA.

 

Both state they offer nothing for businesses like this. The only type of insurance they offer is more like a physical human damage and tool damage. They offer protection for things such as me hurting myself, someone tripping on my tools, or my tools being stolen or damaged.

 

Neither offer protection for such things as: causing damage to a client car, burning paint, denting, damage from chemicals, etc.

 

Where are you all finding this type of insurance?

[Baron_Von_Awesome]

Garage Keepers insurance

[Laguna]

Garage Keepers insurance

I should have specified mobile detailing. I'm only detailing mobile, never at my home. Garage keepers doesn't cover that.

[dipolley]

I recently read that Travelers Insurance is detailer friendly but I have not followed up on this. But yes, garage keepers insurance would still apply to mobile detailing in many aspects.

 

I had an agent tell me that my screw ups are my screw ups (I am summarizing BTW). That insurance would not cover damage done during the normal course of work that I should know how to so.
 

[Laguna]

Garage Keepers according to both companies does not cover any of that. It covers vehicles at your home that aren't yours and if you're driving their vehicles or storing them and something happens.

 

It does not cover damage to the car from your work.

 

If nothing covers any of this, then why are people always saying to be insured? I guess they mean be insured if you're doing it at home with something like garage keepers, so that if something happens to the car while in my possession (but not damage by me), it is covered.

[Baron_Von_Awesome]

Garage Keepers according to both companies does not cover any of that. It covers vehicles at your home that aren't yours and if you're driving their vehicles or storing them and something happens.

 

It does not cover damage to the car from your work.

 

If nothing covers any of this, then why are people always saying to be insured? I guess they mean be insured if you're doing it at home with something like garage keepers, so that if something happens to the car while in my possession (but not damage by me), it is covered.

If you burn off somebody's paint while detailing - there's really no insurance for that since it is considered negligence.  You're washing somebody's Ferrari 250 GT and a cat jumps on the hood and causes damage...there's insurance for that.

 

From the viewpoint of my customers, insurance is peace of mind that they can leave the car with me in my garage and it is protected or that their ride is covered if I come pick it up or drop it off.  In a way, insurance also lends credibility to the business as well.

 

From YOUR viewpoint, Frank, you will still need Garage Keepers for your business even if you are mobile:  You'll need it to be covered while moving cars into and out of garages and driveways for example.  A good way to start shopping around would be to find a body shop in your area and ask who they use for insurance.

[Laguna]

Thanks, also Frank, haha. I guess I was just confused and was looking for insurance that did not exist. This makes more sense now.

[Feets31]

If I am hired to put a dish washer into your home and I damage the dishwasher I would have no insurance on that.  As i should know what I am doing if I am charging for doing a job. 

 

If I damage the water pipe, I would have no coverage for the pipe. 

 

If the damaged pipe causes water damage to your wooden floor.  There would be coverage.   It would be actual cash value coverage and not replacement cost.  

 

I do not think any insurance company is going to cover your work while detailing.  If you kick over a lantern and burn down their house, they would cover that under liability coverage.  If you polish incorrectly and burn the paint or scrap the car, they would not cover that.  

 

(I was an insurance adjuster in a past life)

Edited August 14, 2013 by Feets31

[ksell87]

Detailing as a business is well off into the future but I'm still interested in the responses.

[Baron_Von_Awesome]

Detailing as a business is well off into the future but I'm still interested in the responses.

Even if it's far off, start oragnizing now - you'll be on your feet that much quicker...take it from somebody who's started a detailing shop twice over. Insurance is easily the least exciting aspect of the professional detailing world, but at the same time it's also one of the most important. 

 

On another note - there HAS to be an Adam's forums member who works in the insurance industry that can chime in on this...might even get some business out of it.

Edited August 14, 2013 by Baron_Von_Awesome

[matts88yj]

I'm looking into this as well, even tho it's just my side job, since the client list is getting longer and the value of the cars seems to be getting a fair bit higher.

 

I think JBlack151 has some insurance program going on.  Paging Mr. Black!

[Team Adam's]

If you burn off somebody's paint while detailing - there's really no insurance for that since it is considered negligence.  You're washing somebody's Ferrari 250 GT and a cat jumps on the hood and causes damage...there's insurance for that.

 

 

The Baron is correct... 

 

Look at it from a standpoint of the insurance company - they don't have a way to qualify you or know you are not some hack who is going to damage the first 5 cars he touches and make claims for new paint jobs. 

 

Lets say the car is stored in your garage and a bowling ball you put in the rafters manages to fall on the hood... then yes, thats covered, but no policy I've had in the past would cover just crap work. It covers accidents unrelated to the process being performed while the car is in your care. 

[StormChaser]

This is very interesting because the way I understood it from other members here is that it covers shoddy work. 

Interestingly enough I am in the insurance business but for personal autos only.  I have never worked in the business side of the coverage. 

 

I think that even with the client's vehicles that yall detail it would be beneficial to have just in case something happens to the vehicle (accident only) while in your possession.

[Team Adam's]

This is very interesting because the way I understood it from other members here is that it covers shoddy work. 

Interestingly enough I am in the insurance business but for personal autos only.  I have never worked in the business side of the coverage. 

 

I think that even with the client's vehicles that yall detail it would be beneficial to have just in case something happens to the vehicle (accident only) while in your possession.

 

From what I understand (and you may have it better understood than I do) is that 'shoddy work' would be covered by the customers insurance the same way any damage would be (shopping cart hits a door for example)

Edited August 14, 2013 by Dylan@Adams

[Marylander]

I have nothing useful to add, but this sure is an interesting and informative thread.

[Feets31]

For it to be covered under a customers coverage it would have to fall under the definition of the collision or comprehensive coverage. Each company could have a slightly different definition.  If the loss you cause is covered under their policy I imagine they would be looking for you to pay their $250 or $500 deductible.  Plus the insurance company would likely subrogate the claim and come back to you and/or your insurance company to recoup their payout.  

 

Comprehensive insurance is often called 'other than collision coverage'.  You should read the entire section of your own auto policy under comprehensive and understand it.  On the web you are going to see general descriptions of -- theft, animal collision, glass coverage, etc.  It covers more than that, but it may exclude something.  And just because your company covers it does not mean their company will.  

 

Find a good commercial insurance company in your area and sit down and discuss this with them.  If it can be covered they would know how to do it or how to reduce your liability.  Commercial insurance covers everything, then takes it away, then adds it back into the policy for more money.  No two policy are exactly the same as different people need or want different coverage. 

[StormChaser]

Jim is right about that possibly being covered under comprehensive coverage.  It varies from state to state and it's not covered in all states or by all companies in the same state. 

[Slava]

Very interesting thread. I'll have to get a hold of my insurance agent to get a bit more info on what's covered under my policy. It was my understanding that any damage that is caused by me on a customers vehicle is covered.

[Laguna]

I'm glad I started this thread as it seems people are being more informed. Learning a lot from this!

[Laguna]

Very interesting thread. I'll have to get a hold of my insurance agent to get a bit more info on what's covered under my policy. It was my understanding that any damage that is caused by me on a customers vehicle is covered.

 

I think this is where the problem stemmed from. Everyone just assumed they had coverage. State Farm told me I was covered and the gave me a quote and all. I didn't realize I was not covered for what I was looking for until I had questions. I called originally and just asked for detailing business insurance and explained I will not be at home. They said SURE! and got me a quote and all. It wasn't until I said "can we please discuss what this covers?" that I learned it was not at all what I was looking for.

 

I bet a lot of detailers out there assume they have insurance that covers them damaging a car, but in reality it's just insurance that prevents things like backing the car into a wall or someone tripping on their tools and hurting themselves.

 

 

I'm also curious why anyone would purchase garage keepers if they are not storing the car at their home. If the extent of your work is mobile and you're backing in and out of a garage and hit the garage, their own insurance would cover it. Anyone is covered on your insurance as long as you give them permission to drive the car. The only thing you would have insurance for is so that it doesn't use the client's insurance for repair.

Edited August 14, 2013 by Laguna

[Feets31]

And watch out for personal line agents.  They do not do a lot of commercial coverage and will then rely on someone in the home office to guide them through.   A commercial agent might not know off the top of his head, but he would know the questions to ask.  Plus you can read the riders to see if the right coverage is provided.  

 

The person who wrote your home and auto and your life insurance might not be the right agent and it might not even be the right company for your detailing insurance. 

 

Sounds like Laguna would have had an errors and omission claim against his agent if he had a claim filed against him. 

[LFairbanks]

So let me pose this question.  I have read some comments about insurance and how it wouldn't cover damage to someone elses vehicle because you should know what your doing.  If this was the case your automobile insurance shouldn't cover you in an accident because you should know what your doing and how to drive, right?  My point is accidents happen and I would think that insurance is there for those reasons.  

 

http://www.sba.gov/content/types-business-insurance

[Feets31]

Your car is car is covered by collision or comprehensive coverage and your work, if covered, is covered by liability insurance.  What is covered under each is different. . 

 

Here is a decent article on garage keeper liability.  Notice they say nothing about covering the car for the work you are doing on it. 

 

 http://www.detailking.com/insurance-for-auto-detailing-and-mobile-auto-detailing-businesses/

[LFairbanks]

Your car is car is covered by collision or comprehensive coverage and your work, if covered, is covered by liability insurance.  What is covered under each is different. . 

 

Here is a decent article on garage keeper liability.  Notice they say nothing about covering the car for the work you are doing on it. 

 

 http://www.detailking.com/insurance-for-auto-detailing-and-mobile-auto-detailing-businesses/

 

In a way it does.  2nd paragraph.

 

"You want to be covered while you are working on a vehicle and while the vehicle is in your possession". -

 

See more at: http://www.detailking.com/insurance-for-auto-detailing-and-mobile-auto-detailing-businesses/#sthash.7IUufGha.dpuf

[LFairbanks]

http://www.boltinsurance.com/business-insurance/articles/detailing-shop-insurance/

 

General Liability 

A general liability insurance policy is a basic business policy that covers a number of risks that can happen in your detailing shop work, including physical injury (bodily injury), damage to property, injury to your customer, and advertising injury. Any one of these risks can occur at any time, which may cause you great financial strains if you’re responsible for the damages. Legal and medical costs can get very expensive which may damage your business and even lead to bankruptcy. Protect your business with a general liability policy.

 

 

http://www.sba.gov/content/types-business-insurance

 

 

General Liability Insurance

Business owners purchase general liability insurance to cover legal hassles due to accident, injuries and claims of negligence.

Edited August 15, 2013 by LFairbanks