Business Insurance

N

Naturally

New member
Howdy,



I am starting up a small 'detailing' business; focusing on the cleaning aspects only (wash, vacuum, spot clean, vinyl protectant, spray wax, etc.) The paint correction is something I would work towards over the next couple years.



Recently I got a quote for business insurance; $500 per year. The deductible is $1000 per claim. I am only aiming to make around $5000-10,000 per year.



Would you guys recommend getting business insurance considering that the cost could be nearly 10% of my annual revenue and that if there is a mishap that the deductible would be $1000 anyways?



Also, what has your experience been? Have people ever tried to falsely claim that you scratched their vehicle?



Thanks,



Jordan
 
If you are in business, insurance is a must even if you only expect to make $5000 per year. What you are paying for insurance really isn't that bad and claims are not that common (I've never had one).



Also, don't think of your business expense (insurance) as a ratio to you expected gross sales. Pay out your static expenses first and anything over that is profit. That's at least the way that I think of it. :)
 
I think your quote is a little high. I have insurance as a mobile detailer through Liberty Mutual and I pay $195/year and it cover me $1,000,000 per vehicle $2,000,000 over all, $1000 deductable, plus covers me for rented space, tools and equipment and allows me to work with: Biological material and pretty much anything except asbestos.



If you don't have insurance and you mess up somebody's car they can take your personal assets. So that means they could clean your bank account, take your house or possesions, car, investments, and a number of other things that could be labeled as a personal asset.



If this is something you want to do for people other than your family and friends it is definately a good idea to get insurance.
 
$195/year is extremely low and probably the lowest quote I've seen from all the other detailers on here that have shared that info. I'd have to say the $500 range is about average and peaking at around $1000. Although, it all depends on the type of coverage and your location.



Hi to another WI detailer!
 
Howdy. I thought it was low also but the company i went through (metlife) gave me a low occupancy class. My buddy works for metlife and a nominator for my business. What i have is called a Business Owners Policy because i don't have a facility. When i get my garage it's going to go up a little bit but nowhere close to $500 a year. Oh yeah and i'm covered for driving other vehicles. It's a pretty sweet deal. So how's business by you with all the rain?
 
bridgersmith said:
Howdy. I thought it was low also but the company i went through (metlife) gave me a low occupancy class. My buddy works for metlife and a nominator for my business. What i have is called a Business Owners Policy because i don't have a facility. When i get my garage it's going to go up a little bit but nowhere close to $500 a year. Oh yeah and i'm covered for driving other vehicles. It's a pretty sweet deal. So how's business by you with all the rain?
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Care to share the contact info? I'd love to pay $200-300/yr for what you have.
 
bridgersmith said:
So how's business by you with all the rain?
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I have yet to be rained out, but I'm getting sick of the over-cast days. The end result doesn't have much 'pop' when there's no sun to see the car in.
 
LUSTR said:
Care to share the contact info? I'd love to pay $200-300/yr for what you have.
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... Same here!



I pay almost 1,200 a year for liability and garage keepers! Thats with a $1,000 deductible!
 
Business insurance and a separate Tax Identificiation Number are pretty good ideas. They help with limiting liability. If a $1000 deductable is too much you may want to talk to your agent about a lower one. Of course that would raise the premium but...



For what it's worth $500 per month is only $41.67 per month. That's really pretty cheap when it comes to peace of mind.



Tim
 
Overcast makes crappy cars look good from a distance. After about 5 weeks of it that's the only nice thing i have to say about the weather. This weekend looking nice. LUSTR and XL Advantage, I am trying to contact my agent to find out if he can do business outside the state, as I am not a professional at what he does and when it comes to insurance i'm stooopid! If it's ok I can send you a PM when I hear from him?
 
todd@bsaw said:
$195/year is extremely low and probably the lowest quote I've seen from all the other detailers on here that have shared that info. I'd have to say the $500 range is about average and peaking at around $1000. Although, it all depends on the type of coverage and your location.



Hi to another WI detailer!
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Have to agree $195 a year with 1/2 million in coverage is unbelieveable! Mine is $460 a year for workers comp, equipment coverage and 300/600,000 in liability
 
i have no workers comp because i have no employees. My buddy that does interiors for me has bennies and i still work a full time job. Granted my insurance will go up with i add workers comp and if i buy a building it will go up but not if i'm renting. I know I thought it was a little unbelieveable myself and when i started the process i thought i was going to have to pay out the butt. It may help that i have 2 life insurance policies and my fiance has one, and we have mutual funds through the same company. I don't think i get a discount buy my agent was first my friend.
 
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