Insurance Issues and Detailing

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Dr V

New member
Here is a question for the many professional detailers on this forum: My brother and father are starting a valet hand wash/wax service and have secured contracts with 4 countryclubs. I was concerned that they should have insurance to protect them from lawsuits for paint scratches etc., is this a legitimate concern?



Additionally, I am trying to find them a wipe on/ wipe off waxing or sealant product that they could use in their business. I have suggested Meguiars new Quikwax, which they really liked, but they could not get it in bulk. Are there any products like that (s100 perhaps) that are sold in bulk?
 
S100 isn't sold in bulk unless you get a sweet deal on a case of the jars. Those jars are the only size they pour that wax into. Paste waxes don't come in bulk because it would suck to have to lug around a gallon paint can full of wax when you are on a job. If you lose it or ruin it then you are out of a lot of product. lol



Meguiar's #26 is sold in gallon jugs. That is about as bulk as waxes come. You could check out autoint.com and see what they have to offer. They cater to professional detailers and sell some products in 55 gal drums. You can get their wax or sealant in gallon jugs I believe. You don't want liquid wax in larger containers than that because it may go bad before you get a chance to use it all.



Insurance is a very good thing to have I was talking to Steve about that today in fact. My biggest worry is that we will be polishing a Ferrari and my hands slip and the polisher comes crashing down on the hood or something like that. What if I open the door into another vehicle and cause damage? What if the car doesn't run properly after I detail the engine because I wasn't aware that such and such part can't get wet or it will blow up? Too many things to worry about. Steve pointed out that there wasn't much difference in detailing a 500,000 dollar Ferrari or a 30,000 Dodge. If you mess up the paint on a Geo you are still going to be out a couple hundred bucks to get it repainted. If the owner decides to blame you for something that was already there then you are hosed unless you are prepared for it. If I were to make a go of this full time (as in 40 hours a week type full time) then I would definitely get insurance. Its fine to do as a hobby for a few hours a week but when it becomes your bread and butter then you need to cover all the bases. Its not just a good idea but its probably a law somewhere. I don't think you want to find out the hard way that you should carry some type of insurance.



They should look into PrePaid Legal. Its kind of like Laywer insurance. Its nice to have just in case someone tries to blame you for something. A lawyer may be able to help them write up some sort of contract or service agreement for their customers that protects them from some types of lawsuits. At the very least they can work knowing that if someone does sue them then its not going to cost them anything to have their lawyer look into the merits of the case and advise them of what to do next.
 
My lawyer wrote up a contract service agreement like Jngr said basically stating that they have insurance and that they are giving me consent to drive their automobile. Also, I have a form that I take note of any damage before hand with the owner and make them sign it. Good precautions.
 
Jngrbrdman said:
S100 isn't sold in bulk unless you get a sweet deal on a case of the jars. Those jars are the only size they pour that wax into. Paste waxes don't come in bulk because it would suck to have to lug around a gallon paint can full of wax when you are on a job. If you lose it or ruin it then you are out of a lot of product. lol



Meguiar's #26 is sold in gallon jugs.



Ya and it was only $9.95 ;)



Insurance is a very good thing to have I was talking to Steve about that today in fact. My biggest worry is that we will be polishing a Ferrari and my hands slip and the polisher comes crashing down on the hood or something like that.
Click to expand...



Detail a Ferrari ?



You should be so lucky!!



If yer hands shake too much youll have to watch while I do the biz.



:cool:



See what happens on Friday eh ?



Me and Jngrbrd went to the local 'exotcis' dealer this week to scout it out before we approched them with a detailing proposition and were disgusted with the state of some o the cars.



There was a BEAUTIFUL Lotus Esprit V8 covered in water spots, dust and all sorts of junk.

Would you have paid $$$$$ for it ?



Even the nice Modena they had parked out the front looked terrible with marks all over it.



UGH.



Some people...........
 
SamIam -



I like your login id, I read that book at least once a week to my 3 year old daughter. You should scan the Sam I Am character and use it as your avatar.



They are setting up the business in the burbs of Chicago. Their prices are very reasonable and they hope to make money on volume. They are charging $15 for a hand wash includin tire dressing and $15 for a hand wax, using s100 or an equivalent product. They are able to buy their solutions in bulk from a chemical company that relabels its products for Eagle One and other manufacturers, but are looking for a better spray wax product.



I live in Brownsburg and work in West Lafayette for Purdue Research Foundation.
 
If you are serious about this see an attorney. There is no substitute for good legal advice. The other thing that I can not stress enough is have the detailing business in a corporate entity. When I say corporate entity I am talking about a corporation or limited liability company (llc). Which type will depend on some things and the state you are in. This should not be over looked!!!! The entity will protect the company owners from any personal liability that may result. The most the plaintiff is going to get is the assets of the company (this case some wax, a pc or rotary buffer and some other tools and equipment. Have all contracts and agreements entered into by the company. If not set up this way, any liability that comes could be attached to the personal assets of the owners (i.e. house, cars, savings, etc.).



I just noticed that you live in Indiana. An S-corp or LLC would work. If you would like to discuss further details feel free to PM me.
 
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