Running a car wash business can be a profitable endeavor, but it’s important to be aware of the insurance considerations involved.
In particular, car wash businesses need to have motor trade insurance to protect them if something goes wrong while they are working.
Without this type of coverage, car wash businesses could end up facing significant financial losses if they are held responsible for damages or injuries.
What a Motor Trade Policy Covers
Motor trade insurance is designed to cover a wide range of risks, including public liability, property damage, and vehicle damage. It can also protect employees if they are injured while working.
Car wash businesses should be sure to get a policy that covers all of the risks that they are exposed to, for full protection.
Car wash businesses will take temporary care of customers’ vehicles while they are washing them. A motor trade insurance will take account of this and provide adequate protection should something damaging happen to a vehicle while it is being taken care of.
This is also the case while a vehicle is in transit or simply being moved around work premises to make room for the next vehicle to be washed.
Car washing often extends into a complete valet service, and in this case, a business owner or worker can be insured for any damage that occurs to the inside of a vehicle as well as the outside.
As part of the service, those who wash cars will collect and drop off vehicles to customers for their convenience. This is no problem when these road risks can be covered comprehensively and not just as legal requirements.
The more cover a business has, the more peace of mind there is for its owner and reduced risk of financial ruin, should the worst happen. Reputations will also be involved, and where a customer can be fully compensated, they are better protected.
Product Liability Insurance
In addition to motor trade insurance, car wash businesses may also want to consider other types of coverage, such as product liability insurance.
This type of insurance can protect businesses when they are sued for damages caused by a product that they sell or use.
This type of insurance is not required by law, but it can be a good idea for car wash businesses to have this kind of cover in place.
Business Interruption Insurance
Another type of insurance that car wash businesses may want to consider is business interruption insurance.
This type of insurance can help businesses recover from lost income if they are forced to close down due to an accident or other event.
Again, business interruption insurance is not required by law, but it can be a good idea for car wash businesses to have this protection in place.
Circumstances that might result in a business being interrupted might include:
- Natural disasters such as fires, floods, and hurricanes.
- Manmade disasters such as a car crashing into a building.
- Theft of equipment or stock.
- Employee theft or sabotage.
- Power outages.
- Computer viruses.
We cannot afford to take a chance on our business being interrupted and then not being covered. This is why we should consider this addition to a motor trade policy.
In the case of a car wash business, it is reliant on people needing their cars. Should something happen in the world where there is less car use for a certain period because people are staying in because of a pandemic, this could be considered a disruption.
You will need to check if your insurer covers pandemics, though, given that we cannot rule out more lockdowns.
In terms of other disruptions a car wash business might face, we might think in terms of whether they are mobile or work from premises.
Should something unsafe happen at these premises, which will prevent activities from taking place there, then this could be the disruption that costs a business money.
Perhaps there is an accident of some kind that makes the working area unsafe.
Relocating temporarily somewhere else could provide expensive as could the lost income from not being able to work for a few days, a week, or a month, while repairs are being carried out.
Car wash businesses need to be aware of the different types of insurance that they need to be fully protected. In particular, car wash businesses need to have motor trade insurance, which will protect them should something go wrong while they are working.
In addition to motor trade insurance, businesses may also want to consider other types of coverage, such as product liability insurance and business interruption insurance.