business insurance?

[Heff]

I have a big delaership that I'm getting set up with to do their cars, and they want to see my proof of insurance, what kind of insurance do detail shops have? I'm thinking maybe bonding to cover damage to vehicles while at my shop? I also pick up and deliver, so maybe on road ins too?

Thanks

Heff

 

[imported_smprince1]

In SC it is called "Garage Keeper's Insurance" and it costs around $2500/year.



This will protect other people's vehicles while in your care.

 

[AMDin93103]

I carry a Garagekeepers Policy as well as Commercial General Liability. GK covers damage/loss of vehicle that I work on and my CG covers injury to a bystander who slips in my puddle and breaks a leg. Price is dependent on your area, annual receipts, years in business, claims and Coverage Limits AFAIK. Those two policies run me about $1750/year. Don't under insure yourself. . . people are slick.

 

[imported_ajbarnes]

I carry a Garagekeepers Policy as well as Commercial General Liability. GK covers damage/loss of vehicle that I work on and my CG covers injury to a bystander who slips in my puddle and breaks a leg. Price is dependent on your area, annual receipts, years in business, claims and Coverage Limits AFAIK. Those two policies run me about $1750/year. Don't under insure yourself. . . people are slick.

Agreed.



I also have the same type of policy. My policy is around $2200/yr.

 

[imported_mirrorfinishman]

I have a big dealership that I'm getting set up with to do their cars, and they want to see my proof of insurance,

Heff,



Have you given any thought to asking to see proof of insurance that they carry? I am not trying to be funny. I am very serious. You would be smart to ask to see proof of the insurance that they carry and then have your attorney review all documents.



Think about it. They are only trying to protect themselves by asking to see proof of your insurance, so why shouldn't you try to protect yourself. Hey it works both ways.

 

[David Fermani]

Heff,



Have you given any thought to asking to see proof of insurance that they carry? I am not trying to be funny. I am very serious. You would be smart to ask to see proof of the insurance that they carry and then have your attorney review all documents.



Think about it. They are only trying to protect themselves by asking to see proof of your insurance, so why shouldn't you try to protect yourself. Hey it works both ways.

You'll probably piss the dealer off and loose your chance at the business. You have their cars in your possession, and if one gets stolen or damaged, it's your insurance company that will pay for all the damages. As long as you have custody and care of one of their vehicles, you're responsible 100%. They need proof of that. If you get into an accident with one of their cars, and it's their fault, your insurance company would subrogate against the dealership(or their insurance company) for damages.

Also, when insuring your business there is several factors that are relative to your premiums. Volume $, # of employees, exposure etc...

 

[imported_mirrorfinishman]

You'll probably piss the dealer off and loose your chance at the business.

In that case, it may be better to access your risk and not take a chance doing any business with that dealership.

 

[doged]

You'll probably piss the dealer off and loose your chance at the business. ...

I don’t necessarily think they would be pissed especially after busting a gut laughing at some ridicules request. LOL...... Kidding Again!!!



What would be the benefit of asking for the dealer’s insurance? It’s for good reason they are asking small vendors if they have insurance. It’s how they keep there insurance premium down. The city and federal government do the same. I’ve had to name businesses as additionally insured before.

 

[Envious Eric]

so what about just doing PC work, no wetsanding, no moving cars around, nothing that will really give me a chance to mess up a car at all....would you still get insurance...I know a few people who dont carry insurance because they operate this way....

 

[doged]

so what about just doing PC work, no wetsanding, no moving cars around, nothing that will really give me a chance to mess up a car at all....would you still get insurance...I know a few people who dont carry insurance because they operate this way....

People usually don’t need insurance until they need insurance. I dislike insurance and attorneys. They both have done a great job of destroying our country. Because of them we are forced into it.

 

[imported_mirrorfinishman]

so what about just doing PC work, no wetsanding, no moving cars around, nothing that will really give me a chance to mess up a car at all....

Another case of accessing your risk by reducing your chances of messing up a car.

 

[David Fermani]

In that case, it may be better to access your risk and not take a chance doing any business with that dealership.

Frank - What risk or liability does one take on when they do business with large scale dealership? Before Heff gets discouraged and has second thoughts on taking this dealerships business that is being offered to him, what does he or anyone else have to loose, with respect to liability or exposure? Why might an attorney need a dealership's insurance records? How is a dealership being exposed to liability by a subcontractor detailing their vehicles? Please explain...

 

[imported_mirrorfinishman]

Frank - What risk or liability does one take on when they do business with large scale dealership? Please explain...

David,



The risk or liability a detailing business owner takes on when they do business with a dealership is about the damage or loss of vehicle from the time it is delivered back to the dealership, prior to pickup by the retail customer.



Let's use the following example. A detailer picks up the vehicle from the dealership, takes it back to the shop, cleans it and returns it to the dealership without incurring any damage. The next day, the detailing business owner gets a call from the dealership, explaining that the car is damaged, with a large dent in the rear quarter panel. The detailer knows that this had to happen after the vehicle was returned to the dealership and it is clearly the dealerships responsibility. Rather than arguing about who is at fault and responsibile for the damage, the business owner simply has the option to contact their own insurance company and suppy them with the name and contact information of the dealership's garagekeepers insurance company.



In the above situation, the dealership may not have tried to blame the detailing business owner for the damage, knowing that the business owner had the recourse of contacting the dealerships insurance company. On the other side, when the dealership is holding all the cards and the business owner has no information, then the dealership can do whatever they want.



By asking for the dealership's insurance information upfront, you are simple leveling the playing field and making all things a bit more equal.

 

[doged]

David,



The risk or liability a detailing business owner takes on when they do business with a dealership is about the damage or loss of vehicle from the time it is delivered back to the dealership, prior to pickup by the retail customer.



Let's use the following example. A detailer picks up the vehicle from the dealership, takes it back to the shop, cleans it and returns it to the dealership without incurring any damage. The next day, the detailing business owner gets a call from the dealership, explaining that the car is damaged, with a large dent in the rear quarter panel. The detailer knows that this had to happen after the vehicle was returned to the dealership and it is clearly the dealerships responsibility. Rather than arguing about who is at fault and responsibile for the damage, the business owner simply has the option to contact their own insurance company and suppy them with the name and contact information of the dealership's garagekeepers insurance company.



In the above situation, the dealership may not have tried to blame the detailing business owner for the damage, knowing that the business owner had the recourse of contacting the dealerships insurance company. On the other side, when the dealership is holding all the cards and the business owner has no information, then the dealership can do whatever they want.



By asking for the dealership's insurance information upfront, you are simple leveling the playing field and making all things a bit more equal.

That could still happen regardless if you receive the dealerships insurance information. I guess a vehicle inspection sheet signed by both parties would negate that scenario?

Still how does the attorney fit in???

 

[ET Awful]

In the above situation, the dealership may not have tried to blame the detailing business owner for the damage, knowing that the business owner had the recourse of contacting the dealerships insurance company. On the other side, when the dealership is holding all the cards and the business owner has no information, then the dealership can do whatever they want.

Wouldn't it be better to just have a release form for the dealer to sign upon receipt of the vehicle with a diagram showing an outline of a typical car so the dealer can note any areas of concern upon receipt and sign off that they accept the vehicle and acknowledge that it is free from damage?



It would take the dealer a short walk around and 10 seconds to sign the form.



Many garages use similar forms so you can't claim they inflicted damage to your car.

 

[imported_mirrorfinishman]

Wouldn't it be better to just have a release form for the dealer to sign upon receipt of the vehicle with a diagram showing an outline of a typical car so the dealer can note any areas of concern upon receipt and sign off that they accept the vehicle and acknowledge that it is free from damage?



It would take the dealer a short walk around and 10 seconds to sign the form.



Many garages use similar forms so you can't claim they inflicted damage to your car.

Yes, it would be better to have the dealership sign for the vehicle when it is returned. Think about it. Any dealer willing to sign a release form upon receipt of the vehicle would propably also be up front enough to supply you with their insurance information.



On the flip side, any dealership not willing to supply a copy of their insurance would probably not want to get involved with signing a receipt release form.

 

[David Fermani]

David,



The risk or liability a detailing business owner takes on when they do business with a dealership is about the damage or loss of vehicle from the time it is delivered back to the dealership, prior to pickup by the retail customer.



Let's use the following example. A detailer picks up the vehicle from the dealership, takes it back to the shop, cleans it and returns it to the dealership without incurring any damage. The next day, the detailing business owner gets a call from the dealership, explaining that the car is damaged, with a large dent in the rear quarter panel. The detailer knows that this had to happen after the vehicle was returned to the dealership and it is clearly the dealerships responsibility. Rather than arguing about who is at fault and responsibile for the damage, the business owner simply has the option to contact their own insurance company and suppy them with the name and contact information of the dealership's garagekeepers insurance company.



In the above situation, the dealership may not have tried to blame the detailing business owner for the damage, knowing that the business owner had the recourse of contacting the dealerships insurance company. On the other side, when the dealership is holding all the cards and the business owner has no information, then the dealership can do whatever they want.



By asking for the dealership's insurance information upfront, you are simple leveling the playing field and making all things a bit more equal.

Frank-

Being a former detail shop owner with over 10 years directly dealing with dealerships and as being currently employed as a Auto Damage Appraiser with an Insurance company, I have a reasonable background handling these types of damage claims. Knowing the dealership's insurance(other party/claimant) information is not necessary when making a claim. The detailer's insurance company will subrogate directly with the other party involved if necessary. That dealer might not want to get their insurance carrier involved to dispute charges and may not turn in attempt for reclaiming damages(subrogation).

Getting an insurance company involved with settling a dispute is not the best or most professional way of handling these types of incidents. Trying to settle these types of potential problems privately is much more effective and builds a better relationship with your customer.

 

[David Fermani]

Yes, it would be better to have the dealership sign for the vehicle when it is returned. Think about it. Any dealer willing to sign a release form upon receipt of the vehicle would propably also be up front enough to supply you with their insurance information.



On the flip side, any dealership not willing to supply a copy of their insurance would probably not want to get involved with signing a receipt release form.

Frank-

Do you know this from experience? I don't think this is a fair assumption. I utilized damage reports with several dealerships in the past. It's a very useful tool when a large volume of transactions are occuring. It's very simple and easy to have the manager, salesman or lot attendant sign off each time you take a vehicle back. It protects both parties, shows that you care and will also portray you as being more professional(especially compared to your competition). I'm interested to know if you or any other shops you know of ever received a proof of insurance form from any dealership you've done business with?

 

[imported_mirrorfinishman]

Frank-

Do you know this from experience? I don't think this is a fair assumption.

David,



It all comes down to a matter of trust. Does the detailing business owner trust the dealership and does the dealership trust the detailing business owner.



When a detailing business owner deals directly with retail customers, they can access their risk of doing business with each individual customer one at a time. When the detailing business owner comes across a customer they cannot trust, they simply do not have to do business with that person.



On the other hand, when most of the detailing business owner's income comes from doing business with a dealership, it is not that easy. There is a lot more at stake and the detailing business owner stands to lose a lot more income. Hey, it is a great position for the dealership, but not very good for the detailing business owner.



Like I said before, when it comes to doing business with a dealership, it is up to the detailing business owner to try to level the playing field and make all things a bit more equal. There is no good reason why the dealership should hold total control over the detailing business owner.



These are my thoughts on the subject. And yes, they are based on my own business experience.

 

[Heff]

Well, i finally found a policy that will cover me, It basically covers any clients car i drive whether it's on the road or in my shop. Also, the insurance agents told me that even though the dealership's insurance will cover any damage done to their cars even in my possession, if I am at fault the insurance company will then come after me to pay them, so I'm glad I looked into it!

Heff