Car wash liability insurance questions

[area123]

Considering purchasing a very low but steady revenue small self serve wash. Sales about $15k on a 3 bay self serve only. The current owner operates without liability insurance but we dont want to do that. We are having some trouble getting quoted at all because new to the business. One company wants $550 for basic liability and says that it about their minimum premium. I think that was Columbia mutual thru a local agent. What could we expect to pay if we could get a basic liability policy as more experienced owners? Just so we have an idea what to expect after 1-2 years premium wise. It's in a small Kansas town of that helps.

What are some other companies to try for quotes?

Thanks

 

[JacksonV]

Check here: http://www.carwashinsurance.com

 

[Stuart]

Heartman insurance 800-349-3834 I talked to them when I bought my first 2 washes.

 

[area123]

Thanks for the info. The carwashinsurance.com would not quote due to its a new business for me. They want 2 years experience.

 

[Mel(NC)]

$550 sounds reasonable. Mine is about a $1000. for a 4 bay self serve.

 

[area123]

$550 sounds reasonable. Mine is about a $1000. for a 4 bay self serve.

What is your location and experience level? I was told this might go down or we could quote with a cheaper company after some experience.

This is also just liability and not property coverage.

 

[Ghetto Wash]

Midlothian Insurance does lots of carwashes and are members of SCWA, although I believe they are selling Columbia also.

http://www.midlothianinsurance.com/

 

[Mel(NC)]

What is your location and experience level? I was told this might go down or we could quote with a cheaper company after some experience.

This is also just liability and not property coverage.

I am in eastern NC and my policy is through State Farm. The policy for this year is actually $1114 and includes property coverage. I have been using them for as long as I have owned the car wash (10 years).

Is $15K the gross income? I would think your fixed costs are not going to leave much room for profit.

 

[Randy]

There’s no way I’d run a business without liability insurance. I don’t think the current owner knows what he stands to lose if someone was to get injured on his property. $550 a year is a small price to cover you’re a$$ and have a little piece of mind, that’s only $48.83 a month. Give these guy’s a call http://www.wcwa.org/western-carwash-insurance-agency/ and talk to Sam Furno.

 

[area123]

Yes 15k is gross sales!! About $1500 net income. He spent a lot on new equipment and of course his sales are down due to newer washes and he's 92 so not really into it anymore. Doesn't even have a sign anymore. I think there's room to profit at least $6000 this year which isn't bad for 12k ish sales price.

 

[area123]

I agree. I'd not run it without insurance. When I asked the old guy why he didn't have it he just said he'd never had a problem.

 

[txheat]

So you guys only have liability? for past several years my insurance creeping up to $10,191 this year.

 

[Stuart]

I am spending 5k a year for FULL coverage insurance. Two locations, a vehicle, 11 bays w/one IBA and been doing carwashing for 33 years. Bought my washes 5 years ago.

I recently had a slip/fall on some ice. Customer was sent to get an MRI-$2000 plus doctor fees. My insurance is taking car of it.
Better to have insurance and not need it than being sued.

I think you just call at least 5 companies and see what they each offer for coverage. Ask the about other carwashes they cover and you will start to whittle down who you want to use.
Try the independents, they are able to shop around for you too.

 

[2Biz]

Something that hasn't been mentioned, but on the same topic as liability and insurance. Even though its a small business that you don't have a lot of $$$ invested in, you might think about getting an LLC...It helps to protect other assets.

 

[area123]

Midlothian Insurance does lots of carwashes and are members of SCWA, although I believe they are selling Columbia also.

http://www.midlothianinsurance.com/

Thanks! I called these guys. best rate so far. $350/year which is the minimum premium she said, thru liberty mutual commercial. She said the liability is $210 and the rest is just to make up the minimum $350. I asked her to quote adding some property coverage to maybe get something for the $140 or so.

 

[Ghetto Wash]

Thanks! I called these guys. best rate so far. $350/year which is the minimum premium she said, thru liberty mutual commercial. She said the liability is $210 and the rest is just to make up the minimum $350. I asked her to quote adding some property coverage to maybe get something for the $140 or so.

I get competitive quotes every 3-4 years and no one has ever beat them. I've had a $100,000 tornado claim and no problems in paying for repairs or loss of business while shut down. They are good people also.