How much does insurance cost for car washes and auto detailers?

Car wash and auto detailing businesses pay an average of $54 per month, or $646 per year, for general liability insurance.

This type of insurance helps pay for customer injuries, customer property damage, and other third-party accidents. You may need to add protection for your unique risks, such as:

• Garage liability insurance to cover any accidents that happen in your garage.
• Garage keepers insurance to protect customer vehicles in your care.

If a customer slips on a soapy surface and suffers a concussion, a general liability policy would pay for their medical bills, or your legal defense costs if they sue. It would also pay for repairs if they broke their smartphone in the fall.

General liability insurance also covers copyright infringement, defamation, and other advertising injuries. It can pay for accusations that you published a photo of a customer’s car on your website without permission, or slandered a competitor on social media.

You might need general liability coverage to sign a commercial lease, secure a contract with a larger client, or get a business license. It shows your clients and partners that they're protected against financial losses from the most common risks.

Below is the average general liability policy for car wash and auto detailing business owners who buy from TechInsurance:

Premium: $54 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of general liability insurance depends on numerous factors, including your business operations, the policy limits and deductible you choose, the size and location of your business, the number of employees you have, and any exclusions or endorsements on your policy, such as an additional insured.

Car wash and auto detailing businesses pay an average of $89 per month, or $1,073 per year, for a business owner's policy (BOP).

A business owner's policy bundles general liability coverage with commercial property insurance at a lower cost than buying these policies separately. You can often add other types of coverage as well.

A BOP provides insurance for your office and garage in the event of a fire, storm, or theft. It also protects against common liability claims, such as a customer who suffers a bodily injury or property damage at your shop.

Common add-ons include business interruption insurance (or business income coverage) to cover employee wages and other operating costs during a temporary closure. Another option is equipment breakdown insurance, which pays for losses if an automated tunnel system, pressure washer, or polishing machine breaks down unexpectedly.

This is the average business owner's policy for car wash and auto detailing businesses that buy from TechInsurance:

Premium: $89 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

Businesses that are eligible for a BOP usually are small in size (fewer than 100 employees) and low risk. A similar option for medium-sized businesses or those with higher risks is a commercial package policy (CPP), which costs an average of $71 monthly or $850 annually for car washes and auto detailers.

The cost of a business owner's policy depends on factors such as the value of your business property, the policy limits you choose, your location, and whether you need coverage for a garage.

Car washes and car detailing businesses spend an average of $131 per month, or $1,567 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of a employee injury. For example, if a car detailer develops tendonitis from years of repetitive scrubbing, this policy would pay for their medical treatment and lost income while they recover.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and the car detailing services they perform. Other factors, such as the cost of healthcare in your state, can also affect your premium.

Owners of car washes and auto detailing businesses pay an average of $46 per month, or $550 per year, for commercial auto insurance.

If your mobile auto detailing van or other company vehicle gets into an accident, this policy will help pay for any damages you caused. It will also cover your legal fees if you're sued.

You can buy coverage for other risks as well. For instance, collision insurance will pay for repairs if your vehicle is damaged in a collision, while comprehensive coverage pays for damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires this insurance coverage for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, the number of vehicles you own, and the specific coverages you choose.