Physical damage to the customers’ vehicles is ordinarily excluded, therefore garage keepers liability is often necessary to secure. Garage keepers protects against damage or loss resulting from either comprehensive and/or collision.
Garage keepers liability insurance is most often rated by the aggregate value of what is being insured usually broken down by the amount of comprehensive and a separate amount for the collision. Any owned vehicles, such as a station car or a tow truck is rated by the usage, the year, make, and model, value, radius, etc. Dealer and transporter plates can be calculated by the number of plates, or some other factor.
An umbrella policy typically adds an additional layer of liability coverage over the underlying or base limits.
These policies are generally written on either a basic, broad, or special basis. The first two defines which perils are covered, while the latter covers all direct physical losses except for the exclusions. It is important to determine every aspect of what perils are inherent to the business.
All states have workers’ compensation laws that require organizations to provide coverage or a means to pay for it’s employees claims in the event of an on the job injury or illness. Please refer to the insurance department or the department of labor in the state for which the business operates and the employees are located or work in. Statutory disability may also be required which provides coverage for off the job injuries and illnesses.
By William F. Schaake, CIC, CRM © 2012 All rights reserved
Whether the car wash is brushless, utilizes high power pressure washing, or even old fashioned elbow grease the concern is almost the same for all in the industry:
The hope is the customer will come back again. It’s the repeat business that keeps auto detail technicians in business.
What are the inherent exposures of a car wash business?
The above examples are only a few of the concerns that face the typical automobile detailing service. Other factors should also be addressed such as:
Garage liability insurance provides coverage to help protect the financial interest
of the shop against third party liability losses. These losses would typically result
from negligent acts or accidents. Generally the scope of coverage extends to the
operation of the business, the premises it occupies, the products it sells, and the
work performed after it’s completed also known as completed operations. The operations
hazards are those exposures occurring during business operation such as providing
protection against third partly liability losses form driving a non-
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