should i be insured?

M

Metalvolvo

New member
Hey guys so I've been detailing friends and families cars for a couple years. They would always give me some cash for my time nothing big just so thing for a soda haha.. anyways I got my first non family detail yesterday and it came out great. Now a family member was telling me I should get insured if I want to continue just incase so thing does wrong... I just would like to know what you guys think? I would like to continue detailing
 
Once you take it to another level, like real customers you own it to yourself to get insurance to protect you and them also. You might want to check your local area if you need a license to operate a business also.
 
Probably a good idea to get insurance. I don't have it but haven't really had my business take off yet. When it does I will make sure im insured.

The way I see it, the most expensive car ive detailed was the interior of a F150 Laramie. Am I really going to cause more damage than what my deductible would be anyway? And even then, say I did make a $1000 claim (of which id probably pay $500 out of pocket anyway), would it really be worth the increased insurance premiums?

If you really aren't going to be working on anything really high end (burning thru the paint on a Ferrari can get EXPENSIVE), the only thing you want insurance for is for those really extreme cases like someone having some reaction to the drop of residue from a cleaner you used in the interior. Or if somehow someone gets into an accident and in some weird twist of the law they find a way to blame you for it.

Should you be insured? Absolutely. Do you NEED it? Not necessarily. Consider all aspects of what you are doing and your liabilities and make a decision based off that
 
Great info! Yesterday I worked on a mercedes benz c63. So far the most expensive car I've done yet.. I just did a light polish to remove the wash swirls and topped it with amigo and a sealent but now my family member got me thinking
 
You should simply because it is cheaper than paying for a mistake that will eventually happen if you stay at this long enough.

It also separates you from the hack detailers.
 
Also note the difference between liability insurance, and errors and omissions insurance. One protects you, the other protects the client.
 
If you work on anyone's car that not you close family you need insurance. If you damage a car are you paying out of pocket for the repair? Insurance should be cheap unless you make claims.
 
When you begin to Detail the higher end vehicles, the Clients will ask you if you have Insurance or not..
That will determine to many of them if they are going to trust you with their vehicle..
When I was working full time in WA., at my Shop and at the best German Car Repair Shop, I had a 1 Mil policy that cost me $1200/year..
And if you live in a State that requires State Sales Tax on everything, you need to be collecting it and paying it back to the State every quarter..
And you probably need a Business License from the city/county where you live.

Good luck with this -
Dan F
 
Broceratops said:
Also note the difference between liability insurance, and errors and omissions insurance. One protects you, the other protects the client.
Click to expand...

Errors and omissions would not be written for a detailer nor does it protect the client. The client is protected by a bond. If the bond pays for the damage to a vehicle the bonding company will then collect from the detailer under the indemnity agreement written into the bond. Not being privy to every insurance policy written I'll give you my opinion on what would happen to a licensed, insured and bonded detailer under the majority of insurance policies if he burns through the clear coat.

Liability Insurance: No payment as the damage is excluded under the "care, custody and control" portion of the policy. If the vehicle is in your care, custody or control when the damage occurs there will be no payment.

Garagekeepers: No payment as the damage is excluded under "faulty workmanship". Unlike the Homeowners policy that pays for negligence on the part of the insured the garagekeepers won't pay for sloppy work.

Bond: Can pay for the damage but the detailer is responsible for reimbursing the bonding company for any payment made. Payment is made directly to the owner of the vehicle and not to the shop.

You might want to go to the AutoGeek forum as there have been several threads on this topic in the past.
 
Paul Mitchell, thank you for explaining the rest of the big picture of Insurance for Detailers..

I went through USAA who then got my policy from Travelers, and I remember them telling me that that Policy does not pay for my mistakes, and only a Bond would be able to do that and I would still be liable to the Bonding Company..

They said that they assume I know what I am doing and could opt for the Bond if I felt I needed it..
Dan F
 
Yes stokdgs you are correct. This is a big misconception about insurance. There are a lot of policies you can get the most common being garage owners. You can get health and workmans comp, that will give the customer a warm and fuzzy about you getting hurt on their property. You can get insurance to drive a customers car or store it at your garage. You can also insure you equipment. But I want to make this very clear, no insurance company will cover workmanship. If you burn paint, drop a polisher on a hood, or rip a leather seat, make sure you have cash in the bank. Make sure to have a good relationship with your agent and have them be very clear about the things they cover before you start forking out cash.
 
Not only Yes to the insurance but check your local zoning laws. Inquire with your municipality, Town Clerk or, more than likely, Zoning Office/Land Use office. See what your local laws say about water runoff and issues related. Nothing worse than your venture takes off and someone turns you in for whatever reason.
Good Luck,

Steve
 
If you are planning to branch out from just doing family and friends. ..you better cover your butt....one time or a major mishap and you'll wish you had insurance. ...also I document and file all my details ( pictures of before and after detail)...also I have customers to sign off on a VIF...vehicle inspection form
 
As it relates to liability, I always tell prospective clients, that there is always a calculated risk involved in "paint rejuvenation" of automobiles. If I turned down every car I took a risk on, I would do ZERO work. That is why they call it experience. I just removed a scrape for a lease return of a 2013 BLACK CTS. I worded in the small print that the panel needs re-painting but I will attempt sanding and buffing. I also stated: That the risk CANNOT exceed the gain. I also estimated it 60.00 dollars higher for my additional risk involved. I was successful this time and in most cases, I prevail. If the client understands going in, I can do the work in a less stressed fashion. Clauses can and should be on every pre-work estimate. I also almost NEVER drive any clients cars. But in the 42 years in business, I have had many little stupid things happen that I had to pay to fix, That is the cost of doing business. Taking a risk is about making money. Taking a calculated risk based on your abilities is simply SMART. I have tried to operate "smart" the past four plus decades. From my mouth, to Gods ears. If you don't trust your abilities, on certain jobs, take on jobs you can accomplish.
 
I thank God over the years that my "liabilities" have been minimal. That is because I LOVE what I do and as a result, I always include the "RISK" as part of the conversation regarding the task. I use the "risk factor" to actually work in my favor, by charging an additional premium just because of the risk. BUT in any job I do. The risk will NEVER exceed the gain. That means if I burn through on a scratch removal, I eat all the labor and products, and the client leaves no worse off in the end, because the panel needed painting anyway. Incidentally, I LOVE these jobs. I have a 96 percent success rate, that could be why. The last panel I painted was on a Camaro that the guy painted in his garage, back in 1993. It was a job I should have walked away from. Sanding and buffing a car that someone else painted can be taking on more responsibility than it is worth. The car cost me 700.00 to fix so I am VERY careful now at describing "Risk" to potential clients.
 
Here is a 2.5 million dollar ORIGINAL Fittipaldi GT 40. This car was one of 3 made like it. Either you know what your doing, or you don't. Then everything is a risk. I removed the scratches in all the plastic window glass with a wool pad and compounded with a three step methodGT 40 front view.jpg. Somewhat risky. But again, successful. In the end, it was hardly reflected in the price of the job. This particular shop demands "superior" work. I am either very lucky or very skilled, I like to think of it as Blessed, with perhaps a bit of skill and luck mixed in.
 
When you get "skilled" you can take "calculated" risks with only understanding clients. Some clients will rip your head off and you know what in it. So pick your clients very selectively. It can be a "cruel" world. I learned four decades ago, everybody knows, every thing, so they think. Stay away from "no it alls", They know everything, so let them wallow in their demise. Happy Motoring !!! Paintxpert Shine Since 1969 cars03b.jpg
 
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