How much is Auto Detailing Insurance?

A photo of a male attendant cleaning car seats in auto detailing store
A male attendant cleaning car seats in auto detailing store
Source: Gleamworks

What is Auto detailing Insurance?

Auto detailing insurance is a type of insurance coverage that is specially designed for those in the auto detailing industry.

Whether scrubbing, restoring, or adding that final touch, auto detailing is all about giving vehicles a top-to-bottom makeover.

From washing and waxing to polishing and sprucing up the interior, detailing services cover everything needed to enhance a car’s appearance.

It’s therefore important to select the appropriate small business insurance for your auto detailing enterprise.

This enables you to shield your business from prevailing risks it might encounter, ranging from auto accidents to causing damage to a client’s property.

And that brings us to the elephant in the room, how much does auto detailing insurance cost?

An image of How much is auto detailing insurance
Auto detailing services expert restoring the shine.
Source: detailtime

How much is Auto Detailing Insurance?

The price of auto detailing insurance depends on various factors such as:

  • the number of employees.
  • your claims history,
  • if there are any work vehicles and
  • the location of the business.

For instance, a detailing business with many vehicles and staff members will have a different insurance cost compared to a one-person operation.

The cost of coverage will also depend on the type of coverage you choose.

To break it down, a general liability insurance can set you back anywhere from $365 to $1,700 each year.

If you decide to include a commercial auto plan in your coverage, that might add another $750 to $2,500 to your yearly expenses.

What Insurance Coverage Do Auto Detailing Businesses Need?

When it comes to insurance, there are lots of options, but these are the ones that really matter for auto detailing businesses:

General Liability Insurance

General liability insurance safeguards your business in the event of a lawsuit involving third-party claims of bodily injury or property damage.

It takes care of the expenses for medical bills, fixing or replacing property, and legal fees connected to claims filed against you or your business due to incidents like injuries, property damage, or personal harm.

For instance, a client trips over a floor jack in your garage, hurting their wrist.

Your general liability coverage kicks in to help pay for their medical bills. Typically, payouts for this kind of claim are around $30,000.

It also includes coverage for personal and advertising injury, which protects against non-physical injuries and reputational harm resulting from issues like libel, slander, copyright infringement, and similar matters.

Commercial Auto Insurance

In many states, you must have commercial auto insurance, which covers accidents and theft.

This insurance is perfect for mobile auto detailers moving between clients.

Keep in mind that your personal auto insurance won’t cover any business-related activities.

Workers’ Compensation Insurance

Workers at auto detailing premises face the risk of injuries from vehicles, machinery, slips, falls, and other accidents.

Even with good safety rules, accidents can still happen.

Workers’ compensation insurance offers financial and medical help to your employees or their families if they get hurt, sick, or pass away because of work.

Almost every state requires you to have this insurance, and if you don’t follow the rules, your company might get big fines or penalties.

Garage Keepers Liability Insurance

If you have Garage Keepers Liability Insurance, it helps pay for fixing or replacing your customers’ cars if they get damaged while in your care.

This coverage kicks in for things like fire, vandalism, collisions, or extreme weather.

Since auto detailing can take from a couple of hours to a couple of days, if anything goes wrong with a customer’s car during this time, your shop is responsible, and this insurance helps with the costs.

Business Interruption Insurance

In case of a disaster and your premise gets damaged, you might have to close temporarily.

During this time, you could lose a lot of money but still need to cover regular costs like rent, utilities, and employee salaries.

Business interruption insurance, also known as business income insurance, is often added to a commercial property policy.

It helps cover the income you lose and the expenses you still have to pay because of property damage.

Commercial Property Insurance

Commercial property insurance protects the worth of your building, machinery, equipment, tools, inventory, and other assets.

With commercial property coverage, you can be confident that you’ll be able to replace these items if they are lost.

If a covered incident destroys or demolishes your business property, this insurance will offer financial support to repair or replace the affected items or reconstruct if needed.

Usual causes of loss covered by this insurance encompass fire, theft, storms, hail, explosions, water damage, and vandalism.

A photo of a male attendant cleaning car seats in auto detailing store
A male attendant cleaning car seats in auto detailing store
Source: Gleamworks

What Does Auto Detailing Insurance Cover?

The coverage of your auto detail insurance depends on the type of insurance you choose.

Your policy will protect you from specific risks, and listed below are some of the risks you can expect to be covered based on your coverage plan.

  • Customer’s medical bills if they get hurt at your place
  • Fixes for any unintentional damage to a customer’s car during detailing
  • Costs for damage to other belongings owned by the customer
  • Coverage for work-related injuries or illnesses of your employees
  • Protection against claims of damaging someone’s reputation or business
  • Reimbursement for temporary closure expenses if your business needs to move
  • Coverage for accidents while driving (for mobile detailing businesses)
  • Legal expenses if any of the mentioned issues lead to a lawsuit

Why Should I Insure My Business?

Just like car or health insurance, business insurance protects you from significant financial burdens in the event of unforeseen challenges for your auto detailing service.

How To Get Insurance for Your Auto Detailing Business

Here are easy steps to get insurance for your auto detailing business:

  • Figure out what insurance you need, like liability, property damage, equipment coverage, business interruption, and workers’ compensation.
  • Find insurance companies that specialize in auto-related businesses. Ask other business owners or check industry associations for recommendations.
  • Get quotes from different companies based on your needs. Provide details about your business to SmartFinancial for quick quotes.
  • Check each provider’s coverage details, including limits, deductibles, and exclusions. Consider both cost and coverage value.
  • Consult with a commercial insurance specialist for expert advice.
  • Understand all terms and conditions; ask for clarification if needed.
  • Sign the paperwork, pay the premium, and keep a copy of the policy.
  • Review your coverage yearly, update your provider about any changes to your business, and make sure your insurance still meets your needs.

To wrap it up:

Understanding the cost of auto detailing insurance is a crucial step in securing the longevity of your business.

You have to recognize the specific needs of your business, explore tailored coverage options, and seek advice from experts.

This way, you’ve had empowered yourself to make informed decisions.

Remember, the investment in insurance is not just a financial safeguard; it’s a commitment to the resilience and success of your auto detailing enterprise.

As you embark on this path of protection, may your business thrive, with each detail thoroughly cared for and every challenge confidently faced.

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