Are you thinking of starting an auto detailing business soon? With car prices increasing, it becomes difficult for everyone to own a car. Those who already do are realizing that maintenance is important to make their cars last longer. This leads to an increase in the demand for auto detailing business services.
But like any type of business, auto detailing also has risks. For instance, you may mess up while working on a client’s car. Or someone steals a client’s car or cargo while it is under your care. This type of mistake can cost you a lot of money – especially when the client wants to sue you.
Because of this, profit is not all you should focus on when starting an auto detailing business. You need to install some security measures to lower the risks. One of the best steps that you can do is to get auto detailing insurance.
Do you need business insurance to detail cars?
The quick answer is yes, you need auto detailing insurance. Any type of business needs business insurance coverage. This insurance policies will help protect your business and your personal assets in case something bad happens like theft, vandalism, fire, natural disasters, accidents, and mistakes happen.
Just think about it – when an unforeseen event occurs, you could easily lose everything you worked hard for. Lawsuits from dissatisfied clients can be very expensive. Replacing your tools and appliances for the job will also cost you a lot of money. Such circumstances can put you out of business and drain your personal savings.
But with business insurance, you can at least be secured in the fact that you do not have to pay so much out of your own pocket since the policy can cover the cost for such circumstances.
Types of individual insurance for your auto detailing business
There are different types of insurance policies available for the auto detailing business. Listed below are some of the most common ones:
General liability insurance
General liability insurance policy will cover third party claims such as any damage done to a client’s car while under your care or bodily injury to the client caused by your service or while they are in your shop. This is a common type of business insurance that caters to different types of industries. This policy will cover the business owner and the employee.
Garage keepers liability insurance
Some detail jobs will not be done in a day. This means your client will have to leave their vehicle under your care. If something happens to their car while under your possession, you will be held liable for any loss or damages. This can even result in a lawsuit. A garage keepers liability insurance protects you financially from such costs.
Commercial property insurance
This type of business insurance policy will cover damage done to your shop or office such as property damage from extreme weather conditions, fire, natural disasters, vandalism, and theft. Commercial property insurance can cover the cost to repair or replace what you have lost.
Commercial auto insurance
Commercial auto insurance coverage will protect your work vehicles. If you use your personal car for business and something happens to it, this will most likely not be covered by your personal auto insurance. This is because personal insurance auto policies usually do not cover vehicles while they are being used for business purposes.
Worker’s compensation insurance
If you have employees working for you, you need to get workers’ compensation insurance in case they get sick or injured while they are on the job. Some states actually require workers compensation for business owners, depending on how many employees you have.
Business owner’s policy insurance
A business owner’s policy (BOP) insurance is a combo policy that may cover your general liability, equipment breakdown, property damage, premises liability, business interruption insurance, and cash on hand coverage under one policy. Since this business insurance covers a lot of areas, you can expect this to be a little more expensive compared to other types of policies. However, it is practically a one solution fits all for most business owners.
How much does an auto detailing insurance cost?
Auto detailing insurance costs are different for every business since it will be based on a variety of factors such as how new and big your business is, your claims history, number of services offered, business location, or how many employees you have.
For instance a small business will have a smaller premium compared to a big company. An auto detail shop located in the heart of the city will pay a higher premium compared to an auto detail shop in a small town.
The average price of a standard auto detailing insurance policy with general liability coverage may be around $29 to $39 per month for small auto detailing businesses.
Again, this will depend on what situation your business is in and the type of coverage you want to get. The business insurance cost will vary from one carrier to another. What you may be paying may be higher or lower than what other auto detailers are paying.
Get a quote from an insurance carrier or insurance agent to get a more specific price and for more information.
How to shop for auto detailing insurance
When you are looking for a good auto detailing insurance coverage, make sure to collect quotes from different insurance providers in your area so you can easily compare their coverage and the cost of their policy. You can also contact an insurance brokerage house for your insurance needs since they deal with multiple insurance carriers.
If you already carry personal insurance like health insurance or medical insurance, contact your carrier and see if they have a policy for auto detailing. If they don’t, they may refer you to another agency that has one.
Remember to read reviews and get all the necessary information you need to make an informed decision.
Take note that as your business grows, your business auto insurance coverage will change as well. You will be needing additional coverage so it also does not hurt to update your insurance if you need an upgrade or more coverage.
Professional auto detailing is a great business opportunity. But like just any business, you will need a lot of careful planning, execution, and risk management to pull it off.
Do not start blindly into the auto detailing industry! Be smart, build a strategy, and make sure your small business is secured by getting an auto detailing insurance.
Cars are one of the most important and expensive assets that a person can own. Car detailing services are needed to help their vehicles last longer. Auto detailers need to handle the cars of their customerss with great care and respect.
You may not be able to prevent unforeseen circumstances from happening in your business but with a great auto detailing insurance coverage, you can avoid the financial loss from these unfortunate circumstances.