detailing without insurance

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sparklingwater

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Hi I am going to be detailing but basically just part time in my own garage. Maybe only a few cars a week or a couple on the weekend. Below i'll list what i was quoted which i think is not bad but i was wondering how many of you actually detail without insurance and how many of you who detail without insurance and those who have insurance actually file claims or have accidents that you need to pay for out of pocket or file with ins. company? I am leaning towards just trying to be really carefully without insurance......advice is welcome. Many thanks beforehand!


What i was quoted
Garage Liability limit $500,000.
- Garagekeepers limit $100,000. max on lot, $50,000. max per customer's auto (no towing or transporting covered)
- Garagekeepers deductibles $500.00 ded Comp and $500.00 ded Collision.
- Garagekeepers deductible due to theft of customer's vehicle is $1,000
 
sparklingwater said:
I am leaning towards just trying to be really carefully without insurance......
Click to expand...
Instead of going off on some:
Accidents will happen...OOOPS:
"There goes all of my earthly belongings"/lawsuit tangent...

Here's a couple of: Insurance threads...you may find interesting:

http://www.autogeekonline.net/forum/how-make-money-detailing-cars/45477-few-insurance-questions.html

http://www.autogeekonline.net/forum/how-make-money-detailing-cars/48645-insurance-question.html


You can find plenty more insurance information threads...including some horror-stories...
By typing: insurance, garage-keeper, and the like...
Into the AGO Search function-box

:)

Bob
 
I have insurance for my business and its only $28 a month through State Farm. It covers any damage I do to the car or if its stolen it also covers all my supplies. Even if your doing it part time not having insurance is just stupid.
 
If you don't get paid for detailing, it's a hobby. If you get paid, it's a business. If you have a business, get insurance.
 
Would you rather have it and not need it or need it and not have it?

It only takes one accident to turn your life upside down, and we all know accidents happen. I wouldn't start working for money without insurance.
 
I only do detailing part time and seasonal (no winter detailing to cold). So my insurance cost is like 15-20% of what I gross for the year so it is expensive but necessary. The internet is great for getting me customers but I know nothing about these people and I have no idea what their intentions are. They may booking an appointment as a scam where they are going to try to blame me for something that was already wrong with their car. Unfortunately there are a lot of dishonest people out there. If you are going to detail ONLY for people you know and they are going to be helping you (working alongside You) then insurance is not necessary. If you have a website and going to deal with strangers and money is involved it is a MUST.

Insurance is not to protect your customers car but to protect yourself from lawsuits or major out of pocket expenses.
 
Some good advice given here. When in doubt, CYA!

Even though I don't detail for pay, I do (and will) work on friends and family for 'free.' Even then, I have them sign off a "not responsible for damage" type of statement.

As I said above, CYA!

Bill
 
If you're going it for money (a business) you will probably also need a license and your property re-zoned. Check your local laws.
 
jpegs13 said:
If you don't get paid for detailing, it's a hobby. If you get paid, it's a business. If you have a business, get insurance.
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Bingo!

There is only one scenario and that's how you or anybody needs to see, " if something happens to that car, your fault, get ready. No customer will be nice about it specially since they are paying for your services". I don't think it gets more clear than this. Get an insurance.
 
rustytruck said:
I only do detailing part time and seasonal (no winter detailing to cold). So my insurance cost is like 15-20% of what I gross for the year so it is expensive but necessary. The internet is great for getting me customers but I know nothing about these people and I have no idea what their intentions are. They may booking an appointment as a scam where they are going to try to blame me for something that was already wrong with their car. Unfortunately there are a lot of dishonest people out there. If you are going to detail ONLY for people you know and they are going to be helping you (working alongside You) then insurance is not necessary. If you have a website and going to deal with strangers and money is involved it is a MUST.

Insurance is not to protect your customers car but to protect yourself from lawsuits or major out of pocket expenses.
Click to expand...

This is so true! An example of scammer's; years ago I was a General Manager for a national auto parts/ service center chain and the companies policy was to never deny any customer a refund on any service they rec’d. Their thinking was only 5% of the customers were out to scam the company. They did not want to deny the legitimate customer's a refund because they have a problem the mechanic may have caused, but there’s no proof and the problem may be questionable; most customers are honest (which is true). I can’t count how many times I had to refund people over a $1,000.00’s in services. Even when I knew for a fact these people were scamming the company. You could always tell who was scamming because they would start out by yelling about how we blah blah, blah….. . They would bring their car in to have work done, let say; have their serpentine belt replaced, and after completion they’d tell me the mechanic blew out their entire stereo system because they claim he was blasting their radio while he was working on their car and wanted a new one. I would have to refund the customer’s (scammer!) money for the belt and install a new stereo system in their car (bucket of bolts).

My point with this example is, this company could absorb this cost of doing business. But, when it comes to most of us detailing as a business, not having insurance and someone scams you/ your business can you afford not having insurance? It's just takes one scammer to close your doors.

Greg
 
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When it comes down to a business, be professional about it and responsible. Get an insurance and protect you and your business from scams. Now days, you can't trust nobody, sad but true. Trust us, get one and save yourself the trouble of not having one.
 
can you get insurance for a part time business without having a business license like a LLC or something along those lines?
 
Lots of different territory being discussed here.

As others have adamantly mentioned: get insurance. Liability at a minimum.

Re-zoning required? Highly unlikely, although you may encounter issues if neighbors complain about noise, parking availability, etc. Otherwise, detailing is really no different than any other home-based business.

A business license doesn't relate to insurance. At the core, it's a means of regulation and a source of revenue for your local government. However, you may require a business bank account to get a business insurance policy, and to get a business account, some banks require an active business license. So there are relationships to consider here.

But, back to the original question. Not to be redundant or anything, but yeah....get insurance coverage. :)
 
It varies by what state/county/city you live in. For me, I had to file for a DBA(doing business as) with the county and a business license with the town. The DBA was $26, and the business license is $30 annually so that stuff is cheap. Insurance company may not care about business license but if you're already spending the coin for insurance you might as well just legalize everything.
 
I read a post by someone stating they never bothered with insurance. I think they detailed for a couple years and never had an issue. And also that he had an extra account for such cases that would cause for him to pay some damage. No insurance and no accidents. Saved himself a couple Gs
 
thebamboo23 said:
I read a post by someone stating they never bothered with insurance. I think they detailed for a couple years and never had an issue. And also that he had an extra account for such cases that would cause for him to pay some damage. No insurance and no accidents. Saved himself a couple Gs
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Who ever that was is not to bright! If someone decides to sue you could loose everything with out insurance. Sure he won't have enough put away to pay for $300k car to get fixed. For $30 a month not worth taking any chances.
 
I don't understand how bad a damage can be made for it to cost $300k? I mean burning paint with a rotary on a single panel won't cost more then $5000.. But then again, the worst can happen like lights falling down, right?
 
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