Car wash insurance covers businesses in that particular industry, that is, car wash and valet services.
The cover tends to have many components due to many high risk factors and many vehicles and people are likely to pass through the business each day. The risk of damage to any property, vehicle and person can be high, therefore public liability insurance is required in the event of an accident to cover any probable damage that may occur.
Car wash (or auto wash) insurance is designed especially for each client due to the number of variables involved. Who and how many employees will be driving the cars, if any, around the forecourt? What level public liability cover is required? What level building and contents insurance is included as part of the car wash policy?
A common inclusion with this type of insurance is the fact that if a business loses income or revenue from damage to the building or its contents, the policy will cover actual monetary losses for a pre-determined period of time. Extra cover comes in the form of breakage of electrical or mechanical equipment, forms of utility malfunctions and breakages. In addition car wash insurance protection can cover revenue that is lost due to people liability and legal action. Should there be damage to any employee or customer, the business may be covered from lost revenue deriving from court action, irrespective of the courts ruling.
The most expensive area for a business requiring car or auto wash policies tends to be general liability which covers the more common problems such as scratches and dents while the service is being carried out. Insurers will often offer a business a liability claim in the region of 1 million ($/£/€) for collective claims of this nature. Other specialist car wash insurers have more strict policies where these types of cover are not included or incur very high premiums. By scratching a vehicle due to there being a piece of grit on the sponge can be seen as negligence and the responsibility of the client.
Additional information that is required for any insurer offering this bespoke insurance solution is number of employees, location and size of premises and the amount of stock that may be held on location.
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