Insurance help please

[Tex Star Detail]

Looking at business insurance, not auto insurance.

I did do a search, and found a few threads, but I have more questions that have not been answered.

I have been to a few insurance agencies around here, and when I mention Mobile Detailing, what it is about, and what exactly I do, they usually end up looking cross-eyed and confused.....
I get no where.

What questions do I need to ask? I see alot of folks going with State Farm, and getting REALLY good rates.

There was a thread back from 2005, here is a quote...

Originally Posted by Secret Chimp

Ok, cool. Thanks guys. I called my local State Farm agent and got a policy for $800 a year. It's a general Liability, med, equip and supplies with a $500 deduct.
The part that was killing me with my other policy was how much of the policy amount was for the garage/shop coverage itself. It accounted for almost 80% of the price! So if you mobile guys have full garage keeper/ shop owners policys, you should look at your policy cost break-down and see how much you are paying to cover a shop you do not have!

SC~

So do I need to MAKE SURE I tell them I am Mobile and do not need Garage Keepers?? Also, what about my equipment? Do I need to tally the cost of my equipment and have them cover it? Is it covered in the policy already, or do I have to add it....
I am confused about the insurance thing, and I really need it as busy as I have been getting.......

Thanks,
Chris

[ArmstrongDetailing]

I can't believe you can't find any insurance agents who know what policy you need. I do remember having a bit of trouble finding one myself when I first got insurance though.

I decided to only go with insurance that is required by certain companies I do work for. They require you have general liabilty (1 million in most cases), which I believe only covers if someone gets hurt because of something you did or caused to happen (like slipping on tire dressing on the ground or tripping over a hose or cord). It doesn't cover damage you cause to vehicles or lost or stolen equipment. I'm considering adding those, especially now that I have a full-time employee.

As long as you are not driving your customers cars around, you shouldn't need garage keepers.

I'm not an expert on insurance though so I'm hoping someone else has a better answer for you.

Troy

[Tex Star Detail]

Troy,
you don't have insurance covering damage to vehicles? Only general liability?

Sometimes I pick up clients' cars and drive them back to my place. These are the clients where I cannot detail at their location. Also, when I get to a location, I will have to drive the clients car across the parking lot or what not.

[CharlesW]

When I carried business insurance, I went to my regular insurance agent and he referred me to an agent that specialized in business coverage.
As with any product/service, there can be lots of variable that not many agents will deal with often enough to be familiar with.
If you aren't comfortable with your present agent, you might call an insurance company and discuss it with one of the people that deal with business insurance on a regular basis.

Charles

[ArmstrongDetailing]

Originally Posted by TexasTB

Troy,
you don't have insurance covering damage to vehicles? Only general liability?

Sometimes I pick up clients' cars and drive them back to my place. These are the clients where I cannot detail at their location. Also, when I get to a location, I will have to drive the clients car across the parking lot or what not.

I know I am taking a risk, not that I will damage a car, but that someone will accuse me of damaging their car and try to sue me for something that was there already. I seem to remember asking my agent about this concern and they told me that it would be my word against theirs and they couldn't get away with it.

As far as driving client cars to your house, that would fall into the garage keepers I believe. I have driven clients cars to a different location at rare times and it is a risk. I don't believe your auto insurance will cover you in case of an accident in that situation.

Please don't take my word as expert. I am only sharing what little knowledge I think I have in this area. There has to be an agent in your area who is familiar with your situation.

Maybe call one of the bigger mobile detail companies in your area and see if they would be willing to share their agent with you. I know if a competitor called me asking I would give it to them. I am good friends with a lot of the respectable detailers in my area and we all help each other out at times.

Troy

[dr_detail]

suggestion... tell the agent you're looking for "on-site liability" and a "commercial vehicle" policy -- you might also consider carrying "general liability" if it's not packaged with the on-site policy. If you will be moving their vehicles (pick-up & delivery) it's best to have a "garage keepers" policy.

Hope this helps

Also -- when you list your trailer and its contents be sure to specify "replacement value" not "actual cash value" and have your contents itemized with a "rider" -- this way if it's stolen or damaged, you will not end up with depreciated values for your equipment

[DLR Detailing]

Texas,
I feel your frustration. I went thru some of the very same things that you are experiencing. I even recieved the "blank look" from agents that were referred to me by excisting shops in the neighboring county. I guess the general public really does need an education into what detailing is.

In my experience, State Farm was the only reasonable option for my own needs. Please remember that I am only part time so I didn't feel that my shop/business needed a mega million $ policy. The actual cost of my policy is based somewhat off of the amount of work thru my shop according to my agent. Translated, the more vehicles that go thru the shop, State Farm's risk increases and so does the policy premium. My understanding is that I would have to be full time, my main source of income, before I should see any significant increase.

Definitely go with a full replacement coverage option that dr_detail mentioned. Loss of use/loss of income might be worth looking into as well.

Good luck!
Dave