Got a Big Job, Need Insurance!

D

detailthis

New member
I'm new to the forum, but have been detailing for a couple of years now. I just got a proposal from a local wholesaler, however it is going to be on a pick up and delivery basis. Up until this point i have been a weekend warrior.



Would any of you Pro's know what type of insurance I'd need, besides a general liability policy?



I'm 19 and tuition prices aren't getting any cheaper so i really need this work. Thanks for any help!
 
I just got a policy from State Farm for the following

$1,000,000 Liability

$7,000 Equipment Coverage

$125,000 Garage Keepers Policy (to insure vehicles if I have to move them for ANY reason and ANYTHING happens while doing so)

Price Paid = $1411 / 1YR



The cheapest I could go for the most basic of the above was

$100,000 Liability

$ 0 Equipment Coverage

$ 6,000 Garage Keepers Policy



Total price would have paid = $850
 
googledude gave you some pretty good advice...

Shop around, prepiums can vary widely, both by location and company.



I know it sounds expensive, but give serious consideration to the alternatives.



Sounds like a great opportunity. Good Luck.



Jim
 
googledude said:
I just got a policy from State Farm for the following

$1,000,000 Liability

$7,000 Equipment Coverage

$125,000 Garage Keepers Policy (to insure vehicles if I have to move them for ANY reason and ANYTHING happens while doing so)

Price Paid = $1411 / 1YR



The cheapest I could go for the most basic of the above was

$100,000 Liability

$ 0 Equipment Coverage

$ 6,000 Garage Keepers Policy



Total price would have paid = $850
Click to expand...





State Farm Policy:

$300,000 Liability

$2,000 Equipment

$6,000 GKP

$439 TOTAL



And I'm only 18.



-Shaun
 
now do all of you have official 'business' status, or is that not necessary to get the insurance?



I'm a weekend warrior, but business keeps picking up, so i'm considering the insurance, but i'm nowhere near making myself an official business....
 
blackntan said:
now do all of you have official 'business' status, or is that not necessary to get the insurance?



I'm a weekend warrior, but business keeps picking up, so i'm considering the insurance, but i'm nowhere near making myself an official business....
Click to expand...



Check what your local state offers. It can be pretty simple to make yourself a business. Registering a small self-employed business should be simple and cheap.
 
blackntan said:
now do all of you have official 'business' status, or is that not necessary to get the insurance?



I'm a weekend warrior, but business keeps picking up, so i'm considering the insurance, but i'm nowhere near making myself an official business....
Click to expand...



You just need to file a DBA (Doing Business As) which is just the name of your buisness. You don't need a TAX ID # unless you have employees.
 
detailthis said:
Shaun,



Are you a mobile detailer? Or do you have your own Garage?
Click to expand...



I am currently an at home service and I let some friends/family members come and drop off their cars every here and their. I do not recommend this as it is a huge liability to yourself, your business, and your parents if you are in my situation. Also, the price I was quoted included many $250 deductibles instead of $500 what I was looking for.



I am trying to hook up with my local carwash/fastlube guy and get into a bay he has open at his wash. I want to work out of their and pay him a percentage of my sales.



What would you be willing to pay for a bay in your towns most popular automatic car wash/self serve/quick lube? Also, by doing this, I am not yet an official, legit business. I have it in the works, but am planning on taking that plunge next season. Do you guys think this is a viable/wise option for somebody in my place?
 
Shaun Carollo said:
I am currently an at home service and I let some friends/family members come and drop off their cars every here and their. I do not recommend this as it is a huge liability to yourself, your business, and your parents if you are in my situation. Also, the price I was quoted included many $250 deductibles instead of $500 what I was looking for.



I am trying to hook up with my local carwash/fastlube guy and get into a bay he has open at his wash. I want to work out of their and pay him a percentage of my sales.



What would you be willing to pay for a bay in your towns most popular automatic car wash/self serve/quick lube? Also, by doing this, I am not yet an official, legit business. I have it in the works, but am planning on taking that plunge next season. Do you guys think this is a viable/wise option for somebody in my place?
Click to expand...



I'm currently going to have to be an at home service as well. Her in San Antonio you could get a small space for about $500 a month. And thats not a street front property. It's tucked away in these prefabricated wherehouses.
 
You dont have to have a DBA to get insurance, my agent did not require it to put it under my name. I would reccomend you get your DBA though if you are going to go this route just to cover your butt incase something does happen. If you are going to be doing business under your own name then you don't need a DBA. It is retaivly cheap to register your DBA though, in MD for 5 years its $25.
 
y are you guys paying so much for insurance through them. No lie i had insurance in NJ no less through state farm for 250 dollars a year.
 
quamen said:
y are you guys paying so much for insurance through them. No lie i had insurance in NJ no less through state farm for 250 dollars a year.
Click to expand...



Location and what EXACTLY you are doing play a big role, as well as policy amounts and limits.
 
I have one of the above insurancees but I was told that it DOESN"T cover damage caused by me. Let's say I burn the paint - it isn't covered. THat is what I was told.
 
quamen said:
y are you guys paying so much for insurance through them. No lie i had insurance in NJ no less through state farm for 250 dollars a year.
Click to expand...



But what did you have for coverage? I think the area and the amout of coverage have a big thing to do with it. Here is mine. Its Canadian btw.



Coverage:

Commercial General Liability - ($500 deductible)....$1,000,000

Office Contents - ($1000 ded)................................$5,000

Equipment - ($1000 ded).......................................$12,000

Crime (broad Form) - .............................................$5,000

Tenants Legal Liability - ($500 ded).......................$500,000

Business Interruption - ..........................................$60,000



SPF#4 Garage Liability for Customers Auto - .........$1,000,000

Specfied Perils for Customers Auto's (Fire & Theft) - ......$50,000 per occurrance

($500 deductible for this coverage)



TOTAL ANNUAL PREMIUM - ...................................$1,915



James
 
Hey Tdekany... the only insurance that will cover if you burn the paint is garage keepers/ garage liability. A general liability policy will not cover damage you do to a customers car. My premium with general liability, garage keepers, equipment theft, etc. is about $1400 per year.



Bottom line is General Liability does not cover damage you do to a customers car, while it is in your posession. That is comming from multiple insurance agents. Do not cut corners on insurance if you do, it could possibly put you out of business. $1400 is less than $140 per month, if you can't afford that then you should not be in business, and maybe just keep detailing as a hobby. I don't mean to should harsh, but being in business is not cheap, it is called overhead.
 
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