Auto Detailing and Car Wash Business Insurance

When working with customers and their vehicles, there are two types of coverage that protect against special risks your detailing and car wash operations business will likely face:

• Garage liability insurance, a type of general liability insurance, extends coverage to the additional exposure of garage operations. For example, it would cover a lawsuit from a customer who slipped in a puddle at your service center.
• Garage keepers insurance protects against accidental damage to a vehicle in your care, custody, or control, such as a customer’s car damaged by an employee in your vacuum station or detail shop.

Learn more about the differences between garage liability and garage keepers insurance.

Auto detailing, self-service car wash, and full-service car wash businesses should consider the following insurance products, which cover other risks you might encounter:

• Product liability insurance protects against legal costs related to defective products, such as a car wax that causes paint to chip or peel. It's often included with your general liability insurance.
• Errors and omissions insurance (E&O), also called professional liability insurance, pays for lawsuits related to professional mistakes and oversights, such as a customer who sues because the car detailing service took longer than promised.
• Business interruption insurance is often included in a business owner's policy (BOP). It covers lost income and other costs when your car wash is forced to close temporarily due to a fire, storm, or other covered property claim. This policy is also known as business income insurance.
• Equipment breakdown coverage can be added as an endorsement to your commercial property insurance or BOP. This type of insurance covers expenses when your car wash or auto detailing equipment or machinery suffers a malfunction or mechanical failure.
• Surety bonds protect your customers from employee dishonesty and negligent activities. In the event of employee theft or breach of contract, the insurance company will reimburse the customer for their losses. Unlike an insurance policy, you must pay this amount back to the surety bond company.
• Business personal property (BPP) insurance offers financial protection against lost, damaged, or stolen business property. BPP is often included as part of your commercial property insurance and helps cover the important business items you need to run your business if they need to be replaced.
• Tools and equipment insurance is a type of inland marine insurance that helps pay for the repair or replacement of tools and equipment (like a shop vac, upholstery cleaner, or steamer) if they're lost, stolen, or damaged. The items typically must be less than five years old, and this policy doesn't cover general wear and tear on the equipment.
• Commercial crime insurance, also referred to as fidelity insurance, financially protects your business from criminal acts committed by employees against customers, such as an employee stealing from a client. Your policy would reimburse the customer for the amount that was stolen.

Most policies that small business owners obtain for an auto detailing business with a commercial location should also provide the protection a mobile car detailing business would need. However, there are a couple insurance options that are a must for mobile detailers:

• Commercial auto insurance covers legal bills, medical bills, and property damage if your business-owned vehicle is involved in an accident. Almost every state requires this coverage for company-owned vehicles. Additionally, if you or an employee drives a personal, leased, or rented vehicle for work purposes, you'll need hired and non-owned auto insurance or HNOA.
• Inland marine insurance safeguards your business property—such as detailing and cleaning products, tools, and equipment—while it's in transit to the jobsite or stored at an off-site location. This is crucial because commercial property insurance only covers business property at the location listed on your policy.

It's easy to find cheap auto detailing and car wash insurance that matches your unique business needs and budget. One way is to review coverage options from different insurance carriers, and with Insureon's easy online application you're able to get free quotes from several insurance companies.

There are a few other ways auto detailers and car wash owners can save, such as:

• Bundle policies. The most popular option is a business owner's policy, which pairs your general liability insurance policy with property insurance to save money.
• Customize coverage. You can choose lower limits, a higher deductible, or certain exclusions to save on your premium.
• Focus on safety. Fewer accidents mean fewer liability claims, which helps lower your insurance costs.

Learn more about how to find cheap business insurance for small businesses.