Insurance Questions

P

pmsmith2032

New member
Joined
Jan 13, 2014
Messages
4
Reaction score
0
I have a couple questions concerning insurance that I am hoping someone can help me with. I have done quite a bit of reading on here concerning the topic but still not sure I have a good grasp. Here is my situation:

I am looking to start a small, part-time detailing business out of my house/garage. I have a full-time job so this would strictly be a supplemental business on nights and weekends. I have no experience in the detailing business, but I have detailed my own and other family member cars. I plan on offering very basic services (wash, clay bar, wax, interior cleaning and carpet cleaning). At least initially I don't plan on an services involving buffers, repainting, dent repair, tinting etc. I would definitely prefer to keep this home-based (as opposed to mobile) as I feel more comfortable working at home and would be more able to spend time with my family.

I figured one of the first steps in starting such a business was to contact my insurance agent. He's not really an agent, but rather shops the various companies and finds the best rates. We've been working with him for years and have been very happy with his work (and we trust him). Anyway, I emailed him the following:

"I am planning on starting a car detailing business. This will be a part-time business and will be done out of our garage. What kind of insurance do you recommend and what kind of price am I looking at?"

I'm not sure if I phrased this correctly, but he is now telling me the following:

"As for the detailing business we are running into some problems that we don't think we can resolve with the various markets we have available. Erie was willing to write the home and business but only if the business was operated out of a detached structure on your property. I assumed you were doing this out of your attached garage. Please correct me if I'm wrong.
The problem the insurance carriers have is the difficulty (at times) differentiating between both business and personal liability and property at the time of a claim. In summary, we have companies that will insure your home, but not with the type of business you are proposing. We have companies that will insure the business but not when it's operated out of an attached structure to the main home."

So basically he is telling me a home-based detailing business is not insurable. Does this seem correct? Am I asking for the wrong type of insurance? What other options do I have? Thanks in advance!
 
I've heard of people getting 'garage keepers' insurance. At least that's what I believe it's called.
 
Thanks. Is garage keeper insurance different than what my agent is referring to? I'm really confused!
 
Can you explain what garage keeper insurance is exactly? What does it cover? And what kind of insurance cover actually driving the cars (to and from the customer's house for example)? It seem like there is a lot of confusion when it comes to insurance.
 
I just read the link you sent Pureshine. It explains a lot. Seems to me I basically need something to cover the following:

1. Accidental damage to the car while it's in my possession (from what I read it sounds like damage I do while working on the car, which would be minimal with the services I'll be offering, will not be covered).

2. Coverage for driving the cars.

I am going to contact our broker again and explain more in depth.
 
Been doing commercial insurance for many years.
What you need is called a "garage policy". The policy includes "garage keepers liability". You want "primary" coverage.
It is the type of insurance that an auto repair garage carries for instance. What you are doing is very similar in operation while handling customers cars.
If you drive a customer's car and hit something or another car (your fault) it provides liability coverge for bodily injury and or property damage to the other (third) party. You can also get comprehensive and collision coverage to protect the customer's car if you damage it while say moving it (collision) or say if it gets damaged by hail or fire (comprehensive).
Any damage you do to the car while working on it probably will not be covered. That is because the car is in your "care, custody, and control".
You are the expert and supposed to know what you are doing i.e. if you burn a paint edge I don't see it being covered.
You need a good agent that writes a good bit of garage business. He will know the in's and outs as it applies in your state. I live in Louisiana.
Hope this helps a bit.
Glenn
 
pmsmith2032 said:
I just read the link you sent Pureshine. It explains a lot. Seems to me I basically need something to cover the following:

1. Accidental damage to the car while it's in my possession (from what I read it sounds like damage I do while working on the car, which would be minimal with the services I'll be offering, will not be covered).

2. Coverage for driving the cars.

I am going to contact our broker again and explain more in depth.
Click to expand...

It does cover if you drive the car mine does and need to make sure your policy does. It does not cover if your polishing the car there is no coverage for that. You can give me a call if you want?
 
You must log in or register to reply here.
Back
Top