Basics of Car Wash Insurance Coverage

Car wash insurance protects against auto damage, injuries and other common risks of owning a business. Regardless of how careful you are, accidental damage to a customer’s vehicle is always a possibility. Here’s why car wash insurance coverage is a wise investment for your business.

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Do You Need Insurance for Your Car Wash?

Operating your business without car wash insurance is extremely risky. Car wash jobs involve constant work on other people’s vehicles, and accidents are bound to happen. For example, water could leak through a vehicle’s sunroof or a customer might slip and fall on a wet surface. A comprehensive car wash insurance policy will compensate for these risks, so you don’t have to pay exorbitant out-of-pocket fees.

Businesses that lack adequate insurance can face substantial financial losses if they are liable in a lawsuit. Car wash insurance protects against damage to a customer’s vehicle and injuries sustained on your property.

What Does Car Wash Insurance Cover?

The coverage you need will ultimately depend on what risks you want to safeguard your car wash against. Your policy can help minimize the impact of typical car washing risks such as these.

• Vehicle damage liability: If a malfunctioning machine or untrained employee damages a customer’s vehicle, you could be responsible for any repairs. Car wash insurance protects against lawsuits over scratched paint and other damages to a client’s property.
• Workers’ compensation: If your employees get injured on the job, you could be responsible for any lost wages and medical expenses. You might even get sued for damages. An appropriate insurance policy will cover employee medical expenses and provide wage replacement.
• Equipment malfunction: If car wash equipment breaks down unexpectedly, you could face lengthy service disruptions as you budget for new installations. Equipment breakdown coverage helps pay for repairing or replacing damaged machinery, so operations can quickly return to normal.

Common Types of Insurance for Car Wash Businesses

The types of insurance you need to wash cars at your car wash can vary. Below are several insurance policies that aim to protect your car wash against various potential liabilities.

General Liability Insurance

General liability insurance is the most comprehensive coverage for any business owner, including car wash operators. This type of policy covers typical car wash risks, such as damage to a customer’s car or a client experiencing an injury on your premises.

A customer’s vehicle might get damaged by malfunctioning equipment or inexperienced employees. Alternatively, the car could get stuck inside an automatic car wash. As the misaligned vehicle proceeds through the tunnel, equipment may scrape the paint, rip off the mirrors or even gouge the side of the car. General liability insurance helps cover these damages.

A customer may slip on a soapy floor, requiring medical treatment for any injuries sustained in the fall. General liability insurance offers the best coverage protection for slip-and-fall accidents — a significant risk for any job involving water. It also protects self-serve car washes if someone injures themselves while using your service or products. Because they sustained the injury on your property, your business could face several severe consequences without general liability insurance.

Workers’ Compensation Insurance

Almost every state requires workers’ compensation coverage for most businesses. If you hire employees to help you run your car wash, workers’ compensation insurance protects you against lawsuits over potential injuries. It also covers medical expenses if employees get hurt while performing work-related tasks.

Injuries sustained on the job can also impact an employee’s ability to work, resulting in lost wages while they recover. Workers’ compensation insurance provides medical benefits and wage replacement for employees who cannot work for a period after the injury. If you have workers’ comp, the insurer pays any employee medical bills and lost wages. It also covers liability for permanent disabilities and accidental deaths caused during employment.

Commercial Property Insurance

Commercial property insurance covers the replacement costs of any assets your business owns, provided a covered event caused the damage. Vandalism, fire, theft and direct damage or destruction are essential coverage. For car washes, this type of insurance policy can protect structures like wash buildings, payment kiosks and vacuum bays. Choose a commercial property insurance policy that would cover the cost to replace all facilities.

Your policy should also cover any equipment you couldn’t afford to replace out of pocket. The initial cost of starting a car wash business is a significant investment. Commercial property insurance helps pay the replacement costs of essential equipment and structures in unforeseen events. When damage occurs, file a claim with your insurer so you can return to typical operations as soon as possible.

Business Owner’s Policy

A business owner’s policy combines commercial property insurance with general liability insurance. It’s a cost-effective option for car washes and other businesses to get the coverage they need under one insurance policy. When you choose a business owner’s policy, you protect your car wash against accidental damage you cause to a customer’s vehicle and any damage done to your business’ property.

Additional Safety Measures to Protect Your Car Wash

Adequate insurance coverage will compensate for your financial losses after an incident, but you can also take additional steps to avoid these losses in the first place.

Use these three other safety measures to further protect your business.

1. Be aware of business permits: Stay up to date with business licensing and the various paperwork you must file. If you don’t prepare the appropriate licenses, you can incur unplanned delays that cost your business thousands of dollars. Remember, the required permits for opening a car wash will depend on your state.
2. Perform regular maintenance: Schedule frequent equipment upkeep to reduce the risk of equipment malfunction and auto damage. Well-maintained equipment and machinery help provide customers with a positive and seamless experience. Meanwhile, poor equipment maintenance can deter customers from returning to your business.
3. Purchase quality supplies: Set up your car wash for success by purchasing high-quality equipment and products. From superior car wash machines to top-performing car wash cleaners, you want to provide the best experience for your customers. Choose trusted car wash solutions and eliminate the risk of damages caused by faulty products.

Choosing JBS Industries for High-Quality Car Wash Supplies

JBS Industries is one of the industry’s top car wash supply manufacturers. We serve all car wash businesses — whether you’re looking to start an automatic, touchless or self-serve car wash. Since our establishment in 1979, we have consistently delivered top-performing car wash cleaning solutions to our customers. Shop our selection of soaps, waxes and other supplies for your new car wash today.

If you’re looking to protect your car wash business with top-of-the-line products, contact us to learn more about what our car wash supplies can do for you.