Most people and businesses protect themselves with insurance, and carwashes are no different in their need for these programs. What differ are the specifics carwashes should ensure part of their coverage to protect them when something goes wrong.
At the most basic, carwashes should ensure their building and contents are protected in case of disaster or theft, damage to customers’ vehicles, injuries on the property and business income loss. Protection covering the loss of business income can help the wash in case an event like a storm or fire prevents them from opening. This way the business doesn’t lose as much revenue.
Carwashes can also add coverage that protects them if they get sued.
Furthermore, many insurance companies provide carwash-specific coverages, and it’s a good idea to shop around for these kinds of programs to meet your business’ specific needs. Carwashes can purchase insurance that covers mechanical breakdowns as well.
Insurance claims are common, and they can affect rates. An excessive number of claims may cause insurance companies to drop customers, but carwash owners can take steps to prevent this.
Creating a spreadsheet to keep track of claims made is one way to manage them. Practices vary from business to business, but many owners pick and choose which accidents to submit claims on. It may be better to pay for some incidents out of pocket, while at other times operators may want to involve the insurance company.
One of the newest concerns for carwashes is cyberattacks. Hackers can access sensitive customer and company information. Carwashes with loyalty programs often store this information, so they need to be sure they are protected in case of a data breach.
Carwashes can also use a third party to manage the loyalty program information. Washes should be ready to deal with an attack if it happens, however.
The right coverage for you
Purchasing insurance coverage can be a tedious process, but it is an important part of running a carwash. Expensive accidents could mean unexpected costs that take money away from other projects, like improving your wash with additional services and equipment upgrades.
Owners should be transparent about what all goes on at their facilities to ensure every aspect of the business is covered in their policies. They should make sure they have proper limits of coverage so they are able to replace anything that is damaged or lost.
Finally, carwash businesses should not let sticker shock dissuade them from purchasing comprehensive coverage that meets their needs. Generic coverage may promise a good price, but it might not cover all of a carwash’s needs. Beware of these programs and ask plenty of questions when deciding on a policy.