For organizations of all sizes and across all industries, there are certain risks associated with doing business. For carwash operators, these risks can include what one would consider typical business hazards, such as theft, employee compensation concerns and building damage. But, carwash risk, from an insurance standpoint, goes a bit beyond the typical business. 

The following are three insurance coverages a carwash business should consider including to be prepared against business risks. 

Cyber coverage

Cyber insurance is a specialty insurance product and it is intended to protect businesses from internet-based risks and, more generally, risks relating to IT infrastructure and activities. These risks are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products.¹  

Coverage provided by cyber insurance policies may include first-party coverage against such losses as data destruction, extortion, theft, hacking and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses and criminal reward funds.² Basically, if you have a website or a point-of-sale (POS) system for your carwash, you need cyber coverage.

Garage keepers coverage

Who is responsible if a customer’s car gets stolen or burns down while it’s in your care, custody and control? 

That would be your garage keepers liability. You need this coverage so you don’t have to come out of pocket for a large loss. 

Commercial auto insurance

This type of insurance provides a variety of coverages for cars, trucks, vans and other vehicles used by your business. You need this coverage if you are offering your employees company vehicles. If you don’t provide company vehicles to your employees but they use their personal vehicles to run errands for the business, you must be sure that your insurance policy contains a very important coverage called hired and non-owned auto.

These are just three of the important insurance coverages to consider — there are many more coverages that are specific to carwash owners and operators. It is important to make sure you review your policy coverages often — this is when it’s a good idea to have an annual renewal review with your current insurance agent. 

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Sources: 

¹ https://www.oakdaleinsurance.com/cyber-liability-insurance.html

² https://obamawhitehouse.archives.gov/files/documents/cyber/ISA%20-%20Cyber-Insurance%20Metrics%20and%20Impact%20on%20Cyber-Security.pdf 

Melissa Pirkey, Pirkey Insurance, is a frequent contributor and she can be reached at 214-998-8960 or email at [email protected].