Auto Detailing And Mobile Car Wash Insurance New Mexico Policy Information
Auto Detailing And Mobile Car Wash Insurance New Mexico. If you're thinking about starting NM auto detailing business, there's no doubt that you want to set yourself up for success. Of all the things the factors that you need to consider and decisions you need to be made, making sure that you are properly insured should be top on your list of priorities.
Car washes provide facilities for cleaning automobiles and other motor vehicles. Some are drive-through with either partially or fully automated conveyance of the vehicle throughout the operation. Hand washing, waxing, or interior cleaning of the vehicle may be offered, with customers sent to a waiting area.
Damage to the customers' vehicles is the primary exposure as machinery and washes can break antennas, pull off stripping, crack glass and damage tires. Some car washes are totally self-service, with the customer doing the cleaning. A few NM car washes offer off-premises mobile car washing services that clean customers' vehicles at their home or place of employment.
An auto detailing and mobile car wash insurance New Mexico policy can provide you with protection if you find yourself on the receiving end of a lawsuit for damaging a customers vehicle or worse.
Auto detailing and mobile car wash insurance New Mexico protects your business from lawsuits with rates as low as $29/mo. Get a fast quote and your certificate of insurance now.
Why Do Auto Detailing & Mobile Car Wash Businesses Need Insurance?
As an auto detailer, you will be providing a range of services to your clients. These services may include hand washing, waxing, wheel cleaning, and dusting and vacuuming the interior of various types of vehicles. No matter what type of services you offer, you'll be in contact with the general public, and you'll be working on one of the most important - and expensive - assets an individual can own: their car.
You may be working on expensive import sports cars, vintage vehicles, commuter cars, and family cars, too. It doesn't matter the type or the value of the vehicle you're servicing; it's someone else's property, and it needs to be handled with the utmost care and respect.
Regardless of your efforts to offer exceptional results, mistakes can happen. An employee could accidentally use the wrong type of wax on a car or scuff the paint. Should a mishap occur, you would be held liable for the damages and a client could potentially take you to court. The cost of the repairs, legal defense fees, and any settlement amount that a court may award can be exorbitant.
Mistakes aren't the only risks you have to worry about; a third-party could trip over your equipment, you tools and supplies could be stolen, or a staff member could sustain an injury while working. All of these situations could end up costing you an exceptional amount of money to correct; so much money, in fact, that you could end up facing financial devastation and potential bankruptcy.
That's where insurance comes in; if you are properly insured, instead of having to pay for any repairs, injuries, or other issues that arise out of your own pocket, your insurance company would cover the expenses. In other words, auto detailing and mobile car wash insurance New Mexico can help to save you from serious financial trouble; hence the reason why making sure you are fully covered is crucial.
What Types Of Insurance Should Mobile Car Wash Companies Carry?
There are several types of auto detailing and mobile car wash insurance New Mexico coverage that should be considered. The specific type of coverage you need depends on the unique details of your company; however, the following policies are essential:
This auto service repair insurance New Mexico is one of the most affordable means to cover your business and affords a minimal amount of protection against potential pitfalls. However, you can invariably bundle other policy types with a BOP policy to get a more comprehensive layer of protection to shield your business from financial loss and the fallout of any claims against you. Some of the most common addendums to BOP policies and rider policies that are sold to garage and auto repair shops include:
- Garagekeepers - Garagekeepers liability covers a customer's vehicle when you are performing your car wash services on it.
- Commercial General Liability - This type of insurance protects you against third-party property damage and injury claims. If an employee makes a mistake and damages a client's car, the client could file a lawsuit against you. In addition to covering the cost of the damages, a commercial general liability insurance policy will also assist with the cost of any legal defense fees that you may incur.
- Commercial Property - This policy will protect the physical structure of your commercial building, as well as anything within it; it also protects some of the exterior structures. If a fire occurs, a tree falls and damages the roof, or someone vandalizes your property, this policy would help to pay for the repairs.
- Inland Marine - Commercial property insurance doesn't cover tools and equipment that aren't on the premises of your commercial space. For that, you'll need inland marine insurance, which covers tools and equipment that are lost, damaged, or stolen when they are off your property.
- Workers' Compensation - Whether you employ a team of 1 person or 500, you'll need workers' comp insurance in almost every state. If a staff member sustains a work-related injury or illness, this policy will help to pay for any related medical care, as well as lost wages.
These are just a few of the essential types of auto detailing and mobile car wash insurance New Mexico coverage that are important. You can purchase individual policies, or you could select a comprehensive policy that combines various type of coverage under a single plan.
New Mexico Mobile Car Wash's Risks & Exposures
Premises liability exposure is from slips and falls due to public access to the premises. If there are customer waiting areas, floor coverings should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. Proper attention to housekeeping is required to prevent slips and falls from water, detergents or waxes or from icing during winter months.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. All machinery and equipment used in the operation should be well maintained to prevent property damage to customers' vehicles. Car washes done at customers' premises can result in damage to the customer's real or personal property.
Environmental impairment exposures are due to the detergents and waxes used in the car washing operations and the solvents used for cleaning and maintaining equipment. Adequate procedures should be in place to prevent these hazardous wastes from contaminating the soil or polluting water sources. Contracts should be in place to dispose of all environmentally dangerous chemicals.
Workers compensation exposure can be high due to the potential for slips and falls and for employees to be injured by vehicles or automated washing equipment. Proper attention to housekeeping is required due to the water, detergent and waxes used in operations and to prevent icing during winter months. All equipment used in the operation must be properly maintained to prevent vehicles from rolling off conveyances.
Improper lifting can result in back injuries, sprains, strains, and hernias. Exposure to the elements can result in sunburn, heat exhaustion, or heat stroke during the summer and frostbite and hypothermia during the winter. The use of soaps and waxes can cause dermatitis. Due to the large amounts of cash on hand, hold-ups are possible. Employees should be trained to respond in a prescribed manner.
Property exposure comes from the machinery used to wash, wax, and dry vehicles as they are conveyed through the car wash. All electrical wiring must be well maintained and meet current codes. If the car wash is self-service, there is a potential for vandalism. Attendants help cut down on problems. Locations should be on well traveled and patrolled areas that are well lighted.
Equipment breakdown exposure is high as the business is dependent on its machinery for conducting operations. Replacement parts may be difficult to obtain on a timely basis.
Crime exposures are from employee dishonesty and theft of money and securities. Employee dishonesty is controlled through background checks, inventory monitoring, control of the cash register, disciplined controls and division of duties. Theft of money and securities prevention requires controls of monies kept in the cash drawers and bank drops made throughout the day to prevent a buildup of cash on the premises.
Self-serve car washes may include coin- or currency-operated vending operations. These should have automated coin counters. An attendant should be on duty at all times to prevent vandalism and break-ins.
Inland marine exposures come from computers due to automated machinery used in car wash operations, signs, and valuable papers and records for customers' and vendors. There may be accounts receivable if the car wash offers credit to business customers and goods in transit if there are multiple locations.
Commercial auto exposure is generally limited to hired and non-owned for employees running errands. If there are owned vehicles, any regular driver should have a valid license and an acceptable MVR on record. All owned vehicles must be maintained with documentation kept.
Auto Detailing And Mobile Car Wash Insurance - The Bottom Line
To learn more about the specific type of auto detailing and mobile car wash insurance New Mexico you need and how much coverage you should invest in, speak with a reputable broker that specializes in commercial insurance.
New Mexico Economic Data, Regulations And Limits On Commercial Insurance
Owning and operating a business can prove to be financially and personally rewarding. However, if you want to have as much success as possible, it's essential that you choose the best possible location for your company.
After all, it doesn't matter how exceptional your products are and how top-notch your products and/or services are, if the location isn't favorable for your specific business, chances are you won't reap the success you are hoping for.
When considering where to start a business, it's important to consider the economic trends of a state. These trends provide insight into the health of a state's economy, which can help prospective business owners determine whether or not a specific location is favorable for their particular operation. Additionally, it's important to understand what type of commercial insurance policies you'll need to invest in to properly protect your business.
If you're thinking about starting a business in the state of New Mexico, read on to find an overview of the economy and the commercial insurance requirements of the Land of Enchantment.
Economic Trends For Business Owners In New Mexico
A state's unemployment rate is an important factor to consider when assessing the economy, as it illustrates whether or not the area offers a favorable environment for businesses.
According to the Bureau of Labor Statistics, as of December, 2019, the unemployment rate in New Mexico was 4.7%, which is 1.2% higher than the national average. However, the rate has fallen; in July of 2019, for example, the unemployment rate was 4.9% and in November of the same year, it was 4.8%.
This rapid decrease shows promise for the Land of Enchantment. Furthermore, economists predict that the jobless rate of the state will continue to decrease moving forward.
New Mexico is a large state with varied topography and demographics. As such, the best locations prospective business owners can expect to see the most success include urban areas and the surrounding regions. Examples include:
- Las Cruces
- Rio Rancho
- Santa Fe
The industries that are seeing the most economic growth in the Land of Enchantment include:
- Administrative and federal government
- Advanced manufacturing
- Aerospace and defense
- Digital media and film production
- Distribution, logistics, and transportation
- Hospitality and tourism
Commercial Insurance Requirements In New Mexico
The New Mexico Office of Superintendent of Insurance regulates insurance in NM. New Mexico mandates very few forms of insurance coverage by law. They enforce worker's compensation.
New Mexico requires you to have worker's compensation insurance if you hire 3 or employees on a regular basis in the construction industry, businesses with even one employee must provide workers compensation insurance. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
New Mexico also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Auto Service & Repair Insurance
Read useful small business auto service and repair insurance policy information. In an aotu related business, you need to have the right type of commercial insurance coverage so that your garage, employees, and customers vehices & other property is protected.
- Auto Detailing & Mobile Car Wash
- Auto Service Repair
- Auto Supply Parts Store
- Car Wash
- Gas Station
- Parking Lot
There is a Auto Service Risks Program is an enhancement of the Commercial Package Policy that is available to certain Auto Service Operations.
Automobile repair shops and garages offer a wide variety of mechanical services, from engine repair to tune-ups. The operation may be stand-alone or be part of another business such as an automobile dealership or filling station.
Gasoline stations are normally limited to the dispensing of gasoline, kerosene, diesel or fuel oil with incidental sales of auto accessories and pre-packaged snack food items. Larger gasoline stations may offer other services, such as auto repair, retail sales of food or auto parts, snack bar or restaurant, propane tank exchange, towing, or baths and overnight lodging facilities for truckers.
Car washes provide facilities for cleaning automobiles and other motor vehicles. Some are drive-through with either partially or fully automated conveyance of the vehicle throughout the operation. Hand washing, waxing, or interior cleaning of the vehicle may be offered, with customers sent to a waiting area. Damage to the customers' vehicles is the primary exposure as machinery and washes can break antennas, pull off stripping, crack glass and damage tires.
The three basic types of risks that are contemplated by the Auto Service Risks Program include:
- Repair Shops - operations primarily engaged in auto repair. This includes shops that do body, fender, radiator, ignition service and paint work.
- Service Stations- operations primarily engaged in servicing autos. The sale and installation of auto accessories are a part of this category as long as major engine or bodywork is not performed. Car wash facilities are eligible.
- Storage garages and other parking places.
The following classifications are specifically listed as eligible: Automobile:
- Quick Lubrication Services
- Repair or Service Shops
- Repair Shops–Self Service
- Car Washes–self-service and full-service
- Convenience Food/Gasoline Stores–self-service, full-service and combined
- Gasoline Stations–self-service, full-service and combined
- Parking–public-open air and not open air
Automobile, motor home, mobile home, trailer, and motorcycle dealers are NOT eligible for this program.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Underground Storage Tank Liability, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Computer Fraud, Forgery, Goods in Transit, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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Also learn about New Mexico small business insurance requirements for general liability, business property, commercial auto & workers compensation including NM business insurance costs. Call us (855) 767-7828.