Insurance question

Newdetailer1

Newdetailer1

New member
Joined
Feb 2, 2012
Messages
351
Reaction score
0
How much coverage do you guys carry? This would just be for myself. I'm a sole proprietor and have no employees. I work out of my personal garage on weekends and I'm really not high volume. I would just like to cover myself just incase some should happen. I got quotes for 30, 40 and 50K for comprehensive and 500K for general liability. Which seems reasonable to go with?
 
Is your house and retirement in a trust? If you get sued can you lose your house? Insurance is great, but if you can still lose yor stuff than you need to address that first. If your only doing this part time do you rally need insurance ? How many cars are you planning on doing? Unless your doing lambos, how much damage do you think detailing will cause?
What's the worst that could happen? Do you drive the cars?
 
Mobile detail said:
Is your house and retirement in a trust? If you get sued can you lose your house? Insurance is great, but if you can still lose yor stuff than you need to address that first. If your only doing this part time do you rally need insurance ? How many cars are you planning on doing? Unless your doing lambos, how much damage do you think detailing will cause?
What's the worst that could happen? Do you drive the cars?
Click to expand...


Thats why I'm here asking what everybody else does or would do. Cause I'm not sure what is best or necessary?
 
I might seem like a cynic but in my eyes its best to er on the side of safety and over insure yourself. I would also suggest forming a LLC so that if you do get sued, it would only effect the business and not you personally. You can always change your limits so what I would suggest if I were you is maybe get enough to cover 150-200% of the most expensive vehicle you think you will be detailing. That way, worst case scenario if you somehow manage to destroy the car you have some wiggle room when the plaintiff tries to come at you with "pain and suffering" or "wage loss" or "inconvenience" im sure the right lawyer can think of a lot of creativity to get more money out of you.

Sent from my DROID BIONIC using Tapatalk 2
 
Tundra_10 said:
I might seem like a cynic but in my eyes its best to er on the side of safety and over insure yourself. I would also suggest forming a LLC so that if you do get sued, it would only effect the business and not you personally. You can always change your limits so what I would suggest if I were you is maybe get enough to cover 150-200% of the most expensive vehicle you think you will be detailing. That way, worst case scenario if you somehow manage to destroy the car you have some wiggle room when the plaintiff tries to come at you with "pain and suffering" or "wage loss" or "inconvenience" im sure the right lawyer can think of a lot of creativity to get more money out of you.

Sent from my DROID BIONIC using Tapatalk 2
Click to expand...

Tundra 10 is correct...pursue becoming an LLC. They are inexpensive and easy to set up...and their very name implies their purpose "Limited Liability Corporation"
 
Newdetailer1 said:
How much coverage do you guys carry? This would just be for myself. I'm a sole proprietor and have no employees. I work out of my personal garage on weekends and I'm really not high volume. I would just like to cover myself just incase some should happen. I got quotes for 30, 40 and 50K for comprehensive and 500K for general liability. Which seems reasonable to go with?
Click to expand...

A PM to AGO Forum member Bacon, soliciting his advice in this matter, could will-out to be most beneficial. (Insurance is his forte!)

:)

Bob
 
Newdetailer1,

I happen to be a property and casualty agent in Texas. Clearly, you haven't provided enough information to give specific advice, however I can maybe give you some general advice.

First, find an independent agent in your area. Call and ask if you could come in and talk about your business. Be prepared to give detailed information about your business plans.(ie: what is the scope of your work, type of vehicles you work on, where you work on them, equipment used, do you keep them overnight...you get the idea)

You should look at your meeting as an interview. Your agent should explain what coverages you need and why, provide multiply quotes and answer all of your questions. You should look to him as a business asset. Your hiring him and he's not doing you a favor to give you a quote.

Second, meet with an attorney about setting up an LLC. He will explain how to protect your personal assets should you have a lawsuit above the limits of your insurance coverage. I'm not going to give legal advice, but I do know an LLC doesn't protect from personal financial damage unless you act as a corporation. A good attorney can pierce a corporate veil if you are acting as a sole proprietorship. In most states your home can't be attached via lawsuit. Your retirement accounts are not at risk of a personal suit. However, that doesn't mean other personal assets would be at risk.

Your attorney will make sure to explain your exposure and how to protect your assets.

Lastly, I would suggest sitting down with a good CPA. They will advise you how to manage your business and taxes. You should look to these individuals as your business team.

Hope this helps.
 
Very sound advice from Mr. Kendrick. I always appreciate his input since he is in the business. Bottom line is to get yourself covered. I am the spouse of an attorney and let me tell ya, they can smell a lawsuit through a stack of rotten fish.
 
ive got a question/s....

Im looking to start my own detailing business as a side thing. i have a normal full time job and this is just something i want to do on the side...

i am thinking about just doing it under the table as a side thing. but also kinda want to make it legit.
If i was to do it under the table coz i am not planning on doing alot of detail jobs many a few each month... should i really look into having some kinda insurance? i really don't want to have to deal with all the hassle of taxes, money out of pocket for insurance, etc...

I do plan on detailing the higher end kinda cars also but will probably start out with the the normal daily driver cars...

sry if im thread jacking....
 
Derek, I am not anyone to give legal advise to but I will give you my .02 on your question. Take it for what it is worth and with a grain of salt.

Unless I knew you personally and trusted you tremendously and you knew how OCD I was about my prized possession, I would not let you work on one of my higher end cars unless you showed me some credentials (ie business license, insurance, etc).

Also, should you get insurance? Well here is a question for you, do you or will you ever have something to loose? Furthermore, have you ever made a mistake in your life?

Taxes are easy when you are 1099 (self employed, contract worker, etc). They do take away from your returns from the end of the year but thats because you did not tax yourself when you initially received the money. However on the flip side, you can deduct a whole heck of a lot more. Heck mention your business at dinner and you can use that as a business expense. Write-offs are awesome and the bread and butter for small businesses to keep that money they worked so hard for.
 
Derek Short said:
ive got a question/s....

Im looking to start my own detailing business as a side thing. i have a normal full time job and this is just something i want to do on the side...

i am thinking about just doing it under the table as a side thing. but also kinda want to make it legit.
If i was to do it under the table coz i am not planning on doing alot of detail jobs many a few each month... should i really look into having some kinda insurance? i really don't want to have to deal with all the hassle of taxes, money out of pocket for insurance, etc...

I do plan on detailing the higher end kinda cars also but will probably start out with the the normal daily driver cars...

sry if im thread jacking....
Click to expand...


I don't believe your jacking the thread since its regarding the topic at hand. With that you are in the EXACT some situation I am. I work full time, but started doing a car here and there on the weekends. Since it started to get over 600 in income you’re really suppose to report it. So I figured if I have to report it I might as well file for an EIN number and start helping myself to deductions... I to only do a couple cars a month, but wanted to make myself legit in case it ended up turning into something? I was just looking for a lil coverage for the small amount of work I do and if things really started to pick up then I would get more INS and INC my company. Right now I'm sole for tax reasons and low volume. Does this seem like the way to go for what I current situation I described?
 
Newdetailer1 said:
How much coverage do you guys carry? This would just be for myself. I'm a sole proprietor and have no employees. I work out of my personal garage on weekends and I'm really not high volume. I would just like to cover myself just incase some should happen. I got quotes for 30, 40 and 50K for comprehensive and 500K for general liability. Which seems reasonable to go with?
Click to expand...


We are insured for up to 2 million for auto, rv, bus, semi, etc (does not include aircraft) and I pay $81 a month now. With this said, I am not insured to drive vehicles - which I strictly abide by. Also, I do not advertise this on the website or to clients ( the amount ) - if they ask I say , "yes Im insured". This is RARELY asked by the way - and the only reason I have insurance is to retain a rental car company which provides max 700 a month :/ Other than that I don't think I have been asked lol.
 
B&B Tennessee said:
We are insured for up to 2 million for auto, rv, bus, semi, etc (does not include aircraft) and I pay $81 a month now. With this said, I am not insured to drive vehicles - which I strictly abide by. Also, I do not advertise this on the website or to clients ( the amount ) - if they ask I say , "yes Im insured". This is RARELY asked by the way - and the only reason I have insurance is to retain a rental car company which provides max 700 a month :/ Other than that I don't think I have been asked lol.
Click to expand...

Thanks for posting that. Its not that I don't have confidence in myself, but we all know accidents can happen. I'm sure the worst that could happen is if my garage collapsed on a customer’s car... Other than that I have a hard time believing that someone could take my house because I scratched their fender or went too deep into their clear coat???
 
Newdetailer1 said:
Thanks for posting that. Its not that I don't have confidence in myself, but we all know accidents can happen. I'm sure the worst that could happen is if my garage collapsed on a customer’s car... Other than that I have a hard time believing that someone could take my house because I scratched their fender or went too deep into their clear coat???
Click to expand...

The best "insurance" I have gotten is becoming incorporated. Not that I have much at all to lose possession wise - but becoming incorporated lays all responsibility on that of the corporation ( a separate entity). B & B has it's own "social" basically and it stands alone. I am the president of the company, but all liability lays on B & B and I am not personally liable for any issues that arise such as burning through the clear, or damage to a vehicle. NEVER want any of this to happen, but my butt is covered just in case. I want to build a company with a flawless record but this move made it to where if anything major happened I personally will not be held accountable financially.
 
I am thinking about having my ACL scoped to determine damage from a basketball injury. Do you think I should go for the posterior or anterior approach?
I was debating either stitches or tape to close the wound. Any thoughts?

Surely sarcatic...but seriously WHY IN THE FRIGGING world would you ask someone who details cars what insurance protection they need?

I see recommendations on this thread for LLC's, accountants, retirement accounts protections etc and etc. Its all over the top, its kinda like layering wax 20x !

I have been insuring detailing shops for 15+ years..If you are in Illinois or Indiana I can get you the exact coverage you need, or in some situations no additional coverage is needed.

For others...call the professional insurance agent..do yourself right!

Leave your detailing questions here, your insurance and orthopedic questions elsewhere.

and as always...good luck
..make good choices
 
Bacon said:
I am thinking about having my ACL scoped to determine damage from a basketball injury. Do you think I should go for the posterior or anterior approach?
I was debating either stitches or tape to close the wound. Any thoughts?

Surely sarcatic...but seriously WHY IN THE FRIGGING world would you ask someone who details cars what insurance protection they need?

I see recommendations on this thread for LLC's, accountants, retirement accounts protections etc and etc. Its all over the top, its kinda like layering wax 20x !

I have been insuring detailing shops for 15+ years..If you are in Illinois or Indiana I can get you the exact coverage you need, or in some situations no additional coverage is needed.

For others...call the professional insurance agent..do yourself right!

Leave your detailing questions here, your insurance and orthopedic questions elsewhere.

and as always...good luck
..make good choices
Click to expand...

This forum houses not only hobbyists, professional detailers, but also those in-between. You cannot blame anyone for wanting to get a thorough explaination of what it takes to succeed as a "pro" or become a PROFESSIONAL detailing company. If Joe Schmoe wanted to start a "cleaning" company on cars, sure he could care less about insurance..... but if someone wanted to take this business to a serious level and/or a lucratitive position in their lives of course they would ask questions about insurance. This forum has helped MANY about detailing, ALL aspects of life around detailing - including that of owning your own detailing business. I enjoy these threads more so than that of scientifically breaking down the process of an OTC over that of a high end product - this thread is geared more to real world feed your children type stuff. Not , "but this wax will give you more than .001 % protection on your paint".
 
You must log in or register to reply here.
Back
Top