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Valet Parking Insurance Policy Information

Valet Parking Insurance

Valet Parking Insurance. Valet parking companies provide the convenient - and often, much-needed - service of parking cars for customers and returning them when they are ready to leave an establishment.

Not only can valet parking save time and ensure that cars are parked in secure parking lots, people with health concerns also greatly benefit from the ability to drive straight to their destination without walking significant distances to and from their parking spaces.

Valet parking services are offered by airports, casinos, country clubs, hospitals, hotels, museums, restaurants, shopping malls, and other retail and service organizations as a courtesy for their guests.

The organization does not use its employees to provide this service. Instead, it will contract with a valet parking service. Individuals may also hire these services for parties at their homes or special events such as a graduation, family reunion, or wedding.

Guests stop at a marked valet station, give the vehicle's key to the attendant, and receive a ticket. The valet parks the vehicle in a designated area. When the guest returns, presents the ticket and pays the parking fee (if any), the attendant retrieves the vehicle and returns it to the guest.

The guest may tip the attendant. Additional services such as automobile washing, detailing and shuttle services may be provided.

If you own and manage a valet parking service, or are considering starting a business within this industry, you will want to do everything in your power to manage the hazards associated with valet parking.

Insurance plays a key part in risk management, but what types of valet parking insurance coverage are needed? Discover more in this brief guide.

Valet parking insurance protects parking services from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked valet parking insurance questions:


What Is Valet Parking Insurance?

Valet Parking Insurance is a type of liability insurance coverage that protects valet parking companies and their employees against potential claims made by customers for damage or theft of their vehicles while in their care, custody, or control.

This coverage is designed to protect the valet parking company from financial losses due to lawsuits or other claims. It typically covers claims arising from collisions, theft, fire, vandalism, or other types of damage to the customer's vehicle while it is being parked or retrieved by the valet company.

How Much Does Valet Parking Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for valet parking services ranges from $37 to $59 per month based on location, services offered, revenue, claims history and more.


Why Do Valet Parking Services Need Insurance?

Valet Parking

Like other businesses, valet parking services face considerable risks. Some of those risks are universal in nature, and shared by all commercial ventures, while others are unique to your area of expertise.

Your office premises or outdoor assets could fall victim to an act of nature - such as an earthquake or tornado. Theft and vandalism, too, can cause significant losses. While parking a vehicle, an employee may find themselves in a collision; not uncommon in parking lots.

A car may be stolen or vandalized while in your company's care, or your company may accidentally cause damage to a vehicle. It is even possible for a valet parking company to face a lawsuit in which a customer alleges that something was stolen from their car.

Regardless of whether the suit is later dismissed, this, too, is accompanied by devastating costs.

These and other worst-case scenarios would, without top-quality insurance, all lead to overwhelming expenses that may soon become too much to bear. Armed with an excellent insurance plan, however, your valet parking service is protected even if it is confronted by a major peril.

That is why business owners should welcome the opportunity to invest in the best possible valet parking insurance with open arms.


What Type Of Insurance Do Valet Parking Services Need?

The exact nature of the coverage you should invest in to protect your business from financial ruin depends on your valet parking service's unique circumstances.

The types of assets you own (such as office space and parking lots), your number of employees, and the jurisdiction within which you operate are merely some examples of variables that influence the types of coverage a valet parking service should purchase.

Although you should always consult a competent commercial insurance broker to ensure you have the coverage you consider, here is a glimpse at the essential kinds of valet parking insurance coverage needed:

  • Garagekeepers: When a vehicle is vandalized, stolen, accidentally damaged, or involved in a collision while it is in your care, this form of insurance covers the expenses that arise.
  • Commercial Property: Both outdoor property, such as parking lots, and commercial buildings can be protected with this form of insurance. It covers the repair and replacement costs associated with perils such as theft, vandalism, and natural disasters. With added business interruption insurance, a sub-category of commercial property insurance, you can further recover a portion of the revenue you lose after a catastrophic event.
  • Commercial General Liability: To protect yourself from third party personal injury and property damage claims pertaining to incidents that happened on your premises or occurred as a result of your company's activities, it is essential to carry general liability insurance. This form of valet parking insurance coverage covers a significant portion of your legal costs if you were to be sued.
  • Workers Compensation: This type of coverage will cover the expenses that arise when an employee is injured on the job, including medical bills and lost wages. Carrying workers' comp means your valets are covered if they are in an accident while parking a car, but it also protects your administrative staff.

Because the modern insurance market is challenging to navigate, it is imperative to discuss your unique risk profile with a commercial insurance broker who understands your field. Together, you will ensure that your valet parking insurance covers all your bases.


Valet Parking Service's Risks & Exposures

Valet Parking Only

Garagekeepers liability exposures are high because the valet service accepts the guest's vehicle and must return it in undamaged condition. Any existing damage should be noted on the ticket given to the guest.

Joyriding by attendants should be prohibited. Lack of control over keys could result in a guest's vehicle being stolen.

Business auto exposures are primarily of a non-owned nature but are high because valets drive unfamiliar vehicles in congested areas. All drivers must have a valid driver's license and acceptable MVR. Random testing for alcohol and drug use should be required.

Some valet services provide shuttle services using owned vehicles. Vehicles must be regularly maintained and records kept at a central location. If vehicles are taken home, there should be written procedures regarding personal use by employees and their family members.

Premises liability exposures are limited due to lack of public access to the valet's office location. Since valet parking is done at clients' locations, the clients would be primarily responsible for any injuries to guests on their premises.

Personal injury liability exposures include allegations of assault, discrimination, and invasion of privacy.

Workers compensation exposures are high. Valets park guests' vehicles in congested areas and can be injured while driving or by other vehicles. Seatbelts should be required when a vehicle is in motion. The number of valets, their ages, experience, field supervision, and training are important.

Valets should be trained to handle angry or intoxicated guests. Accumulation of cash may be a target for robbers, resulting in injury to valets.

Property exposures are from office operations and are limited to electrical wiring, heating and air conditioning systems.

Inland marine exposures include accounts receivable from the service's clients and valuable papers and records for client contracts and any required permits or licenses. There may be computers or a special floater for property kept at valet stations, such as signs, traffic cones, and umbrellas.

Crime exposures are from employee dishonesty and theft of money and securities due to the accumulation of cash collected by attendants when parking services are provided for a fee. Employees may steal guests' vehicles or property stored inside those vehicles. Hazards increase without proper background checks and reconciling tickets with cash collected from customers.

What Does Valet Parking Insurance Cover & Pay For?

Valet Parking Insurance Claim Form

Valet parking companies can be sued for various reasons, such as negligence, property damage, or even personal injury. Insurance policies help protect these companies by providing financial coverage in case of lawsuits. Here are some examples of situations where valet parking companies may face legal issues and how insurance can help:

Vehicle damage: If a valet parking attendant accidentally damages a customer's vehicle, the customer may sue the company for compensation. An insurance policy with Garagekeepers Legal Liability coverage can help pay for the repair or replacement of the damaged vehicle, as well as any legal fees associated with the lawsuit.

Theft: If a customer's vehicle or belongings inside the vehicle are stolen while in the care of a valet parking company, the company may be held responsible. A Commercial General Liability (CGL) insurance policy can help cover the costs of replacing the stolen items or vehicle, and any legal expenses that arise from the lawsuit.

Personal injury: If a customer or a third party gets injured due to the actions of a valet parking attendant, the company may be sued for medical expenses, lost wages, and other damages. A CGL policy can help cover the costs of the injured party's medical bills, lost income, and legal fees.

Employee injury: If a valet parking attendant is injured on the job, they may sue the company for workers' compensation benefits. A Workers' Compensation insurance policy can help cover the costs of the employee's medical expenses, lost wages, and any legal fees associated with the claim.

Wrongful termination or discrimination: If a former employee sues the valet parking company for wrongful termination or discrimination, the company may be liable for damages. An Employment Practices Liability Insurance (EPLI) policy can help cover the costs of legal defense and any settlement or judgment awarded to the plaintiff.

In each of these scenarios, insurance policies help protect valet parking companies by covering the financial costs associated with lawsuits, allowing the business to continue operations without suffering significant financial losses.

Commercial Insurance And Business Industry Classification


Description for 7299: Miscellaneous Personal Services, Not Elsewhere Classified

Division I: Services | Major Group 72: Personal Services | Industry Group 729: Miscellaneous Personal Services

7299 Miscellaneous Personal Services, Not Elsewhere Classified: Establishments primarily engaged in providing personal services, not elsewhere classified. Establishments primarily engaged in operating physical fitness facilities, including health fitness spas and reducing salons, are classified in Major Group 70 if they provide lodging and in Industry 7991 if they do not, and those renting medical equipment are classified in Industry 7352.

  • Babysitting bureaus
  • Bartering services for individuals
  • Birth certificate agencies
  • Blood pressure testing, coin-operated
  • Buyers' clubs
  • Car title and tag service
  • Checkroom concessions or services
  • Clothing rental, except industrial launderers and linen supply
  • Coin-operated service machine operation: scales, shoeshine, lockers,
  • College clearinghouses
  • Comfort station operation
  • Computer photography or portraits
  • Consumer buying service
  • Costume rental
  • Dating service
  • Debt counseling or adjustment service to individuals
  • Depilatory salons
  • Diet workshops
  • Dress suit rental
  • Electrolysis (hair removal)
  • Escort service
  • Genealogical investigation service
  • Hair removal (electrolysis)
  • Hair weaving or replacement service
  • Locker rental, except cold storage
  • Marriage bureaus
  • Massage parlors
  • Porter service
  • Quilting for individuals
  • Rest room operation
  • Scalp treatment service
  • Shopping service for individuals
  • Steam baths
  • Tanning salons
  • Tattoo parlors
  • Turkish baths
  • Tuxedo rental
  • Valet parking
  • Wardrobe service, except theatrical
  • Wedding chapels, privately operated

Valet Parking Insurance - The Bottom Line

To protect your business, valets and the people's whose cars you are parking, having the right valet parking insurance coverage is vital. To learn what policy options are available to you, how much coverage you should invest in and the premiums - speak to a reputable commercial insurance broker.

Additional Resources For Professional Services Insurance

Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.


Professional Services Insurance

The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.

Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.

In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.

Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.

Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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