Every business needs a proper insurance policy. Car wash businesses are no exception. Here’s what you need to know about protecting your business with car wash insurance.
Best Car Wash Insurance
Each business is unique and needs specialized coverage to be sure that it is fully protected. It’s a good idea to look for insurance policies from companies with experience in your industry.
Here are some of the best car wash insurance companies to look into.
Types of Car Wash Insurance
While you may be able to find insurance companies with car wash experience, there isn’t a singular car wash insurance policy out there. Instead, you’ll need to build your business’s full coverage with a few different insurance policies, each of which offers its own set of coverages.
Insurance coverages that you may want to consider for your car wash business include:
General Liability Insurance
Every business can benefit from a general liability insurance policy. This is the type of insurance that can protect your car wash business from financial and legal troubles. General liability insurance offers a few key benefits:
- Property damage. If your business is responsible for damaging someone else’s property and held liable for it, your general liability insurance policy may be able to help you pay for the damages. For example, if 1 of your employees is responsible for damaging a customer’s car during a car wash, your general liability insurance policy may be able to help pay for the damages to the customer’s car.
- Medical payments. The potential for injuries to customers is also a reason to have a general liability insurance policy. If a customer is injured on your premises, your general liability insurance policy could help your business cover the costs of the injured customer’s medical bills related to the injury. It may be able to help your business, regardless of whether the customer’s injury is your fault or theirs.
- Personal and advertising injury. The last major component of general liability insurance coverage is personal and advertising injury. If your business is sued for libel or slander, your general liability insurance policy could provide the financial coverage for your business to deal with those claims.
Commercial Property Insurance
Commercial property insurance is essentially the business owner’s equivalent to homeowner’s insurance. It can help protect your business from financial loss if your business structure or your business’s physical assets are damaged due to a number of situations. The most common covered claims are losses due to a fire at your business or theft of your business. Commercial property insurance policies may cover other causes of loss as well.
It’s important to consider your car wash and the costs you would need help with if your business was destroyed by a covered loss. This includes the cost to repair or rebuild your car wash facility, car wash equipment, furniture, electronics and more.
Commercial Umbrella Insurance
Commercial umbrella insurance exists to provide backup for your business if you face a particularly expensive claim or multiple claims within a year. Instead of offering coverage for specific situations that would cost your business financial and/or legal damage, it can extend the coverage amounts of your business’s other insurance policies.
When you purchase any business insurance policy, you will select or agree to an annual coverage limit. This means that in your policy year, your insurance company will only pay out up to the maximum coverage limit for your business’s covered claims.
If a claim or multiple claims cost your business more than that insurance policy’s annual coverage limit, this is where the umbrella insurance policy can help out. It may seem unnecessary to purchase an umbrella insurance policy, but it could give your business peace of mind if your business has to deal with expensive claims.
As with any insurance policy, you should consider the cost of the policy and the benefit of it to determine whether it’s the right fit for your business.
Workers’ Compensation Insurance
Your business is responsible for keeping your employees safe while they’re on the job. It’s important for businesses in any industry to ensure that employees understand the best safety practices for their job. It’s especially important for businesses that may require physical effort like a car wash.
If an employee does get injured at work or falls ill due to a dangerous work environment, your business will be held liable. Workers’ compensation insurance allows your employees to get assistance with the costs of their work-related injury or illness.
Your business’s workers’ compensation policy can cover your employee’s medical costs while they are treated for their injury or illness. If the work-related injury or illness is severe enough to keep your employee out of work for an extended period of time, they may also be able to receive wage replacement.
This is when your workers’ compensation policy pays out a certain amount of the employee’s wages while they are out of work to recover. Your insurance company may also provide wage replacement if the injured employee is unable to resume their role and has to switch to a role that pays less with your business.
Your workers’ compensation policy also provides legal benefits for yourself as the business owner. If an injured employee or their family sues your business due to the work-related injury or illness, your policy can help pay for your legal costs as you defend your business against the lawsuit.
Employment Practices Liability Insurance
Your car wash business may also face other employment-related claims. For example, if an employee files a lawsuit claiming that your business wrongfully terminated them or discriminated against them, this type of insurance can help protect your business.
Typically, employment practices liability insurance policies include coverage for your business’s defense costs and other damages to your business from an employment-related claim.
Cost of Car Wash Insurance
Business insurance policies vary in price. The cost of your car wash business’s insurance policies will depend on a number of factors, including:
- The types of commercial insurance coverage you choose for your business
- The coverage amounts you choose for your insurance policies
- The physical location of your car wash
- The condition of your car wash’s facilities, including the building it operates out of
- The size of your business and the number of employees you have
- The annual amount of your payroll, or an estimated amount of the policy year’s payroll
- How long you’ve been in business and the number of years of experience you have in your industry
- Your past business insurance claim history
To find out exactly how much it might cost to insure your car wash business, you should start by getting a quote. Insurance costs are fast, easy and free. All you need to do is enter your ZIP code to get started.
For some businesses, bundling your insurance coverages may help lower your insurance costs. A common example of a bundled coverage policy is a business owner’s policy. These policies typically include general liability insurance and commercial property insurance. Some companies may offer additional coverages with its business owner’s policies as well.
While it’s impossible to know how much your insurance policy will cost without a quote, there are some national averages that can provide some information about the cost of certain insurance policies. For example, Progressive has reported that the national average monthly cost for a general liability insurance policy through the Progressive Advantage Business Program was $53 in 2019.
How Car Wash Insurance Works
Each car wash business is unique, and that calls for a unique combination of insurance coverage. To fully protect your business, it’s important to consider the risk factors that your business faces.
Is your business located in an area that is prone to bad weather that could damage your business? You can also consider what the costs would be to replace all of your car wash equipment if something happened to it. These considerations can not only help you determine the coverage types your business needs but the amounts of coverage as well.
It may be useful to look for an insurance company that offers more information about car wash insurance policies. Some insurance companies specialize in certain industries and better understand what types of insurance businesses in those industries should have to protect their business.
Another thing to consider is what types of insurance your business is legally required to have. This can vary by state and a good insurance company can help you make sure that you are meeting the minimum requirements based on the state that your business operates in. If your car wash has employees, your state will probably require that your business has a workers’ compensation policy. It may also require other coverages, such as general liability insurance.
Your insurance company should also let you know about its claims process. Your business will need to submit a claim with your insurance company to receive the benefits of your insurance policies. Remember, you’ll only receive reimbursement or other assistance if the cause of your claim is covered by the insurance policies that you chose.
Find Your Car Wash Insurance Policy
The 1st step to getting coverage for your car wash business is a quote. After you’ve received quotes from more than 1 insurance company, you can compare the coverage options and the costs that each offers. Start with our list of recommended providers to find a cash wash insurance policy to protect your business today.