Car Wash Insurance (Quotes, Cost & Coverage)

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Frequently Asked Questions About
Commercial General Liability Insurance

How much does commercial insurance cost?

Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.

What kind of business insurance do I need?

Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.

What is a Certificate of Insurance?

A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.

Is business insurance tax deductible?

Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.

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Car Wash Insurance

Car Wash Insurance

Car Wash Insurance. 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 car washes offer off-premises services that clean customers' vehicles at their home or place of employment.

Owning a car wash can be a really exciting and lucrative business. But if you want to be successful and protect yourself when things go wrong then you are going to need certain types of commercial insurance. Let's take a look at some of the reasons that you might need insurance as a car wash and what options are available to you.

There are definitely some risks associated with running a car wash. A car wash can be a dangerous place no matter which type of you have. Some of the potential risks that come with having a car wash include fire or vandalism, theft, wrongful termination claims and employee injury claims, damage to equipment or premises due to weather or natural disasters, the breaking down of expensive car wash equipment and damage to vehicles that are being watched your facility.

You definitely want to look at the risks in protect yourself from as many of them as you can with the right car wash insurance plan.

Car wash insurance protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.

The Type of Car Wash You Operate

The type of car wash that you operate will have a great deal to do with what type of insurance you need. There are basically two different types of car washes:

  • The first type of car wash is the self-serve. These are usually unattended and everything is automated (in-bay automatic). This is a significant investment, but it can be run 24 hours a day, 365 days a year, without having to manage it yourself or hire employees.
  • The other type of carwash is the full-service. A full-service carwash is usually only open during certain hours and has actual employees that will clean cars, including the interior detailing and hand wash - so it will require different insurance options than the self-serve car wash.

Types Of Insurance Available

There are multiple types of car wash insurance available, but these are some of the most common:

Commercial General Liability

The first type of insurance is general liability insurance. This covers things like someone slipping in your place of business or a part of your carwash malfunctioning and damaging someone's vehicle or injuring them. Commercial liability insurance is absolutely vital for a carwash business.

Property Insurance

Property insurance is a good idea for any business that has premises where employees work or where customers come. Property insurance protects you from fire, natural disasters, vandalism, theft and more. Property insurance and liability insurance are sometimes grouped into the same umbrella policy.

Garage Liability

One of the unique types of car wash insurance you may want to consider is garage liability insurance. This is a special type of insurance that auto repair shops and car washes can sign up for that protects them much more fully if someone's vehicle is damaged, the car is stolen or something else happens. If you are providing a service for a vehicle such as mechanical work or a car wash, then you probably want to sign up for garage liability to make sure that if a major incident ever does happen that your business is protected.

Equipment Breakdown

A car wash requires a great deal of expensive equipment, and when that equipment breaks down, it can be detrimental to the business owner and the employees that work there because the carwash will not function. Equipment breakdown insurance protects you against this possibility.

Business Income and Extra Expense

If your carwash must has to close foe repairs due to a covered loss, this coverage can replace your lost income and help with temporary extra expenses if you must relocate your business operations for a period of time.

Workers Compensation

If you have a full-service car wash, then you might have employees that work for you, and if that's the case then you most likely are going to need workers comp. Worker compensation insurance is there to pay for medical bills from work-related accidents, illnesses or injuries.

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.

Find Out What Your Business Insurance Options Are

You should definitely talk to a insurance broker and find out what your commercial car wash insurance options are. When you have a car wash, there are some options above and beyond the normal types of insurance that every business needs. Understanding what these additional options are and how you can get the best umbrella insurance plan will allow you to be fully protected while still saving money on insurance premiums.

Small Business Economic Data & Insurance Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.

Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.

Small Business Information

Read up on economic statistics and insurance information that relates to small business owners in the United States.

Small Business Economic Data In The United States

Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:

  • In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
  • Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
  • Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
  • Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
  • In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
  • There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
  • Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
  • Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:

  • Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
  • Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
  • Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.

Additional Resources For Retail Insurance

Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.


Retail Insurance

The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.

Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.

Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.

When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.

Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.

Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.



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Car Wash Insurance
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