When starting a mobile car wash business, it’s important to have the proper insurance coverage in place.
There are several types of insurance that are essential for protecting your business. This article will provide an overview of the most important types of coverage, as well as the costs associated with each.
Mobile Car Wash Business Insurance Policy Options & Cost
The four most common types of insurance for mobile car wash businesses are as follows:
- General liability insurance, which protects you from lawsuits arising from injuries or property damage that occurs as a result of your business activities. General liability insurance can also help protect your mobile car wash business’ assets in the event of a lawsuit. Typical costs are $500 to $1,000 per year for a basic policy.
- Commercial property insurance, which can help reimburse you for lost or damaged property caused by fire, theft, or other covered events. This type of insurance is typically affordable, with rates starting at just $750 per year.
- Workers’ compensation insurance, which helps mobile car wash businesses cover the costs of employee injuries or illnesses. This type of insurance can help businesses pay for medical expenses, rehabilitation costs, and other related expenses. Workers’ compensation insurance is required in all states except Texas. Workers’ compensation insurance typically costs between 1% to 1.5% of your total payroll costs.
- Business income insurance, which is sometimes called business interruption insurance or business continuity insurance. This insurance helps businesses recover from certain losses caused by events such as property damage, theft, or business interruption. This type of insurance can help businesses cover the costs of not being able to operate for a period of time. It can also help businesses pay for expenses such as employee salaries, rent, and other ongoing costs.
This type of insurance is typically very affordable, with rates starting at just $500 per year.
Other types of business insurance to consider based on the specifics of your mobile car wash business include:
- Product liability insurance, a type of insurance that helps businesses protect themselves from lawsuits that may arise due to products that they sell.
- Professional liability insurance, also known as Errors and Omissions (E&O) insurance, helps professionals protect themselves from lawsuits. Professional liability insurance is typically more expensive than other types of coverage, with rates starting at $750 to $1,500 per year.
- Employment practices liability insurance, also known as EPLI, helps mobile car wash businesses protect themselves from lawsuits that may arise from the way they employ their staff.
- Cyber liability insurance, which protects you from lawsuits that may arise from a data breach or other cyber incident.
- Business identity insurance, which protects your business from theft or misuse of your company name or logo.
- Commercial auto insurance and commercial fleet insurance, which protect you from lawsuits that may arise from accidents involving employees while driving for work.
- Key person insurance or key man insurance, which protects your mobile car wash business from losses that may arise from the death or illness of a key employee,
- Equipment breakdown insurance, which can help pay for the cost of repairing or replacing damaged equipment,
While this list of insurance options covers most mobile car wash businesses, you may be required to purchase additional coverage depending on the specific nature of your mobile car wash business. It is important to speak with an insurance company to determine which policies are right for your business.
The cost of business insurance will vary depending on the type and amount of coverage you purchase. However, business owners can expect to pay a few hundred dollars per year for general liability insurance.
It is important to talk to your insurance company to make sure you have the right coverage in place for your mobile car wash company.
How Much Insurance Should a Mobile Car Wash Business Have?
This is a difficult question to answer, as the amount of insurance you need will vary, depending on the type of services you offer and the size of your company. That being said, most insurance experts recommend that business owners purchase enough coverage to protect their assets in the event of a lawsuit.
When shopping for liability insurance, be sure to ask your insurance company about the coverage limits and supplemental coverage options available.
Conclusion
In summary, it is important for a mobile car wash business to have adequate insurance coverage in place. Business owners should purchase enough coverage to protect your assets, and you should speak with an insurance company to determine which types of coverage are right for your business.
The costs of insurance for a mobile car wash business will vary, depending on the types and amounts of coverage you purchase. However, you can expect to pay around $1,500 to $2,000 per year for comprehensive protection.