Do I need insurance? Avoid legal issues?

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TheMidnightNarwhal

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Hey so I'm almost ready to begin getting public jobs on the weekends. It's just my friends and parents mentionned this and I agree it has scared me a bit.

Is there a way to avoid getting sued if a client claims I damaged the car and all that. Do I need liability insurance or can I redige a document that if the client signs it makes it so I cannot get in legal trouble?

Iv'e done my friends car and parents car no issues but I did turn down 2 jobs from random clients because of this since I wasn't to sure and wanted to verify.
 
If you are thinking of doing this for a living, then my answer would be yes. Absolutely.
 
Choice is yours, man.

I wish you good luck, regardless.
 
Yes but guys (or gals) that's the thing I'm asking. Can't I make my client sign a waiver?
 
Simple answer YES! but most times you will pay out of pocket because of deductible and premium increase.
 
Like yes I totally understand insurance if this is a business doing at least a client per day but like I said, this is more hobby right now.

I'm not even sure what to expect if I get insurance for cost? Probably will cost more than what I make by detailing lol.
 
I wouldn't sign any waiver that waves my rights as a consumer
 
Ok then I guess I need to find insurance. My business isn't even registered yet. It was more of a hobby but if I don't wanna go bankrupt I guess I need to.
 
TheMidnightNarwhal said:
Ok then I guess I need to find insurance. My business isn't even registered yet. It was more of a hobby but if I don't wanna go bankrupt I guess I need to.
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I've read all of your posts. You seem like an avid learner, and your questions are spot-on.

You seem eager enough, which is completely understandable.

But, I think I speak for most by saying that going into a business with no insurance is potential suicide.

Be smart, and cover your own a$$............... ;)
 
TheMidnightNarwhal said:
Yes but guys (or gals) that's the
thing I'm asking.
Can't I make my client
sign a waiver?
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•Waivers aren’t always “bullet proof”
from ever having to face litigation.

-My understanding of their purpose is to
warn me of possible harm. By signing off
on a waiver I would be saying that I under
stand the risk(s), and I’m agreeing to go
forward with the project anyway.

•With that in mind:
-I sure wouldn’t sign one;
-(let alone ever be made to sign one)


Bob
 
Think of it this way - you GET to have insurance. You're in a situation to run your own business and earn income the way that you see fit. The way I would look at it is be thankful that you have the opportunity and embrace what is required (taxes, insurance, liability, these things aren't bad). Look online to see if your county has a small business development center - they can help you with all sorts of stuff to get your business in operation and can possibly get you in contact with an attorney and an accountant if you need one or both.

Starting on the weekends is a great idea and will give you room to grow. :)
 
TheMidnightNarwhal said:
Is there a way to avoid getting sued.
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You can stop your question right there. No... You can't avoid getting sued, but you can protect yourself with liability. Anyone can sue you for anything. The burden shifts to you once a case is filed to show they don't have a case, which can be a long, tedious, drawn out process. The wheels of justice roll very, very, very slowly.

Now, would someone sue you for burning through clear on a fender? If you had no way to cover the claim, yes, they would in small-claims court and they'd probably win... In most instances you'd be out of pocket. The real liability comes in when you have a vehicle over-night or on your property while your working. I will be taking in a fairly expensive vehicle soon, and of course it will be locked away in the garage away from prying eyes. But at first light, when the garage door opens, sound waves of a V10 will travel beyond my limits and sure enough, a crowd will gather.

The problem comes in when you take possession of a vehicle (that is not yours and this varies from state-to-state). You are on the hook for any and all damage to that vehicle, and forbid you cause harm to someone else or their property with that vehicle.

Call your local INS Broker, they can hook you up with a Garage Keepers + Liability on a per instance basis for about $1500 per year... As others have said there is a responsibility to be in business. If I have work done on my house, I want to know the contractor is licensed, Insured and bonded, if he/she is not, they don't get the job.
 
vobro said:
I wouldn't sign any waiver that waves my rights as a consumer
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And luckily even if you signed something like that, it doesn't relieve the other party of liability due to negligence. And that's really the most common cause of lawsuits. So, if you sign a waiver and an apple tree falls on your car, that's not negligence. If the guy drops a buffer on your car and dents your hood, that's negligence.
 
You also need to familiarize yourself with the types of policies available, because typical garage keeper's insurance cover the vehicle against fire, theft, vandalism and covers accidents involving your personal equipment and third parties. It does not cover negligence. I don't believe there is an insurance policy you can purchase that covers poor worksmanship.
 
sudsmobile said:
You also need to familiarize yourself with the types of policies available, because typical garage keeper's insurance cover the vehicle against fire, theft, vandalism and covers accidents involving your personal equipment and third parties. It does not cover negligence. I don't believe there is an insurance policy you can purchase that covers poor worksmanship.
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I agree with this

Of course insurance is always recommended however I went for years without it only detailing a couple cars here and there because I factored in that the cost of the insurance plus a deductible I would be better off just paying for any damage out of pocket. I never drove customer cars so I was mostly worried that I could damage or scratch the paint or ruining the carpet or something.

I would recommend looking into insurance just don’t become victim of getting too much insurance because it’s simply a waste of money. Some people will say that you can never have too much insurance, I disagree with that because you need to find the right policy to realistically cover yourself without wasting money on a policy that offers coverage that you will never need.




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Insurance won't prevent you from getting sued nor will it cover burn through..
LLC or SCorp will prevent from being sued for personal assets.

You can get insurance like unbrella or garage keepers for legit accidents...but again, won't cover poor workmanship aka burnthrougg
 
Mike@ShineStruck said:
Insurance won't prevent you from getting sued nor will it cover burn through..
LLC or SCorp will prevent from being sued for personal assets.

You can get insurance like unbrella or garage keepers for legit accidents...but again, won't cover poor workmanship aka burnthrougg
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Mike hit it on the head. If you have a lot of assets, look into forming a LLC or Corp.
 
I think you need to figure out on your own if insurance is worth it for you. It depends what you work on, what type of work you do and the chances of damaging anything and all that.

One thing you do want to do is to take pictures of the car before you touch it. Also, doing a pre-inspection form is a good idea. Mike has one available in the forum.

I find that as a detailer, the risks of damaging a car are very low. The only 2 things I can think of are: Compounds if you use a rotary. And wet sanding. Even so, if you do damage something, costs of repair are gonna be low enough that using the insurance would not be worth it. Let's say you burn though paint and it costs 1000$ to repaint. Would you really pay the 500$ franchise and have your insurance pay the other 500$? They would increase your premium afterwards so it is simply not worth it.

If you drive clients vehicles, then a garage keeper insurance would be a good idea. If you crash their car, that can be a nightmare without insurance.
 
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