Insurance For Valet Service Businesses

General Liability Coverage

Every business faces some sort of financial risk at some point, regardless of the industry. It is essential for business owners to be prepared for unforeseen events and circumstances that can result in financial losses. 

General liability insurance provides coverage against bodily injury or property damage that is caused by the valet attendant. It also includes direct injuries that involve the driver striking a pedestrian. Most valet services opt for general liability insurance as it is one of the most basic forms of commercial insurance that every business should have. 

General liability insurance covers multiple aspects of operations, including slip and fall accidents within the vicinity of the valet parking business or when a staff member causes damage to a car while parking. Although general liability insurance is not mandatory in New Mexico, it is quite effective for providing adequate insurance coverage to valet service owners as it can protect the business from heavy lawsuits and fines in case a customer decides to sue. Thus, having sufficient insurance protection can compensate for the destructive damages.

Garage Keeper's Liability

This form of insurance covers damages sustained by the vehicle in a parking lot when it is under the care and supervision of a valet attendant. It includes theft, vehicle collision, and any other type of crime or damages caused to the vehicle when it is under control and custody of the company. 

Garage keeper's liability covers the owners from the negligence of their employees. For example, if a car gets damaged as a result of a collision with another car, garage keeper's liability could be useful. This insurance coverage protects owners from expensive claims that could lead to financial instability and bankruptcy. 

Workers' Comp. Insurance

If you have more than one employee working for your business, you will most likely need to get workers' compensation insurance for both full-time and part-time employees. Workers' compensation aims to provide coverage for disability, bodily injury, and medical expenses of employees or valet staff while performing duties of their job.

 In addition, this insurance policy provides reimbursement for lost wages at the time of recovery from an illness or disability. Workers compensation insurance is also known as employer's liability compensation insurance. This form of insurance means that your valet drivers are covered if they are in an accident while parking a car; it also protects your administrative staff. 

Physical Damage Insurance

A physical damage insurance policy offers coverage for the vehicles that are owned by you. It protects you against damage to your vehicles caused by theft, fire, collision, and vandalism. So if your trucks catch fire or if someone steals them, physical damage insurance would give you coverage for the repairs. It also helps pay for damages caused by falling objects, collisions with another vehicle, fire, rollovers, vandalism, earthquakes, or hitting an animal. 

However, as a dealership owner, you may need additional protection like drive-away collision insurance, etc., as physical damage insurance does not cover the legal fees for lawsuits made after you crash a truck, the medical expenses arising from an accident, the income lost in case you or the passengers miss work, the property stolen from your vehicle, and the damages made to another car after the accident. 

Commercial Property Insurance

Valet service owners should consider getting commercial property insurance. This insurance policy provides coverage for your property, including buildings, cars, and other physical assets, from the risk of storms, vandalism, fire, or theft. However, it does not provide coverage against floods and earthquakes unless you get a customized insurance plan. 

In addition, the policy will cover the cost of repair in case any of the vehicles sustain damage or loss. It will also cover the cost of replacing all of the parts or equipment that was damaged.