Auto Detailing Business Insurance: What's The Cost?

Auto detailing insurance is a necessity for auto detailing businesses. It is a type of business insurance that protects against common risks, including auto accidents and property damage. The cost of auto detailing insurance depends on various factors, such as the number of employees, business location, type of business, and the coverage required. For example, a mobile auto detailing business typically has lower insurance costs than a stationary shop. Additionally, the cost of insurance for an independent auto detailer is generally lower than that of a larger business. Auto detailing insurance typically includes general liability insurance, commercial auto insurance, and workers' compensation insurance.

Commercial auto insurance

The cost of commercial auto insurance varies depending on several factors, including the number of employees, the business location, the type of vehicle, the location of the company, and the driving records of the employees.

Some examples of commercial auto insurance include box truck insurance, commercial van insurance, and non-trucking liability insurance.

General liability insurance

In addition to property damage, general liability insurance covers other types of third-party property damage, such as damage to premises rented by the business. This can include repairs to a rented property used for a car detailing business if it is damaged. It also covers personal and advertising injury, such as libel and slander lawsuits.

The cost of general liability insurance for a car detailer business varies depending on several factors, including the number of employees, business location, and policy limits. On average, car detailer businesses in America spend between $450 and $1,000 per year for $1 million in general liability coverage. It can be purchased as a standalone policy or as part of a business owner's policy (BOP) that includes multiple forms of coverage, such as business interruption and property insurance.

Business owner's policy

A Business Owner's Policy (BOP) is a package policy that combines general liability insurance with commercial property coverage in a single, easy-to-manage policy. It is a cost-effective way for auto-detailing business owners to protect against property damage, injuries, theft, and other losses.

A BOP will provide your business with the best coverage by including all your liability and property coverages under one policy. The General Liability portion of a BOP is the same as a standalone General Liability policy, but companies create special package forms that are industry-specific. These forms have optional coverages that most businesses in your industry are likely to need, such as pollution coverage for mobile detailing.

Your business property – including supplies, water tanks, hoses, and pressure washers – can be covered under a BOP. When scheduling your equipment, make sure that the coverage follows you anywhere within your regular operating premises. Some Business Property endorsements only cover property at your business location, so if you have a mobile service, you will need coverage that follows you everywhere.

Loss of Use/Equipment Breakdown coverage is another coverage included in a BOP. If, for example, your pressure washer is damaged and you cannot use it, this coverage will pay for a rental or emergency replacement while your claim is being settled.

Business Interruption Coverage is also normally included in a BOP. This coverage will pay your normal income if the business cannot operate due to a covered peril. For a small business, this coverage can mean the difference between staying in business and going under after a claim.

The other coverages included in most BOPs are less important and include cash and securities on hand. If, for example, you are robbed at the end of the day, this coverage will replace the money stolen. Employee dishonesty is also an included coverage – if your employee steals from you or a client, this coverage will compensate you for your loss.

A BOP is a great investment for any small business, especially as you can acquire general liability insurance at a discounted rate by purchasing it as part of a BOP rather than as a standalone policy.

Workers' compensation insurance

Additionally, some states offer workers' compensation insurance for small businesses. However, it is important to ensure that the business is "rated" properly as an "auto laundry" rather than a repair shop or mobile repair business, as the latter categories have significantly higher insurance rates.

Commercial umbrella insurance

The cost of commercial umbrella insurance varies depending on several factors, including the size of your business, the industry you operate in, and the number of policies you want to be covered. Typically, the coverage increases in $1 million increments, and the price per $1 million of coverage can range from a few hundred dollars to several thousand dollars per year. The specific risks associated with your business type will also influence the cost.

When purchasing commercial umbrella insurance, it is important to understand what is not covered. Commercial umbrella insurance does not cover all liability claims, and it does not extend the limits of certain policies, such as commercial property insurance. It is also important to note that this type of insurance is not meant to replace your primary insurance but to provide additional protection.

For an auto-detailing business, commercial umbrella insurance can be a valuable addition to your insurance portfolio. It can help protect your business from financial loss, property damage, and injury claims. By having this coverage, you can rest assured that you have additional protection beyond your primary insurance limits.

Frequently asked questions