Mobile oil change commercial and general civil liability insurance is considered
Not long ago, I received an email from a gentleman who wanted to establish a mobile oil change business in Florida. He was concerned about the type of insurance he might need and was under the impression that a $ 1 million commercial liability policy was needed beyond his work truck vehicle commercial auto policy. Well, let’s talk about this; you’re right?
Turns out it definitely is, you see the commercial car is not the same as completed operations or potential liability while working. For example, if a car catches fire that you’re working on, your commercial auto policy won’t cover it. Do you see that point? So this is the advice I explained to you;
You will most likely need to obtain a business insurance policy; $ 1 million total, 300K per general liability occurrence, with a “garage owner’s liability” notation, and there will be a customer who may demand more, and also demand to be additionally insured, not just a certificate of insurance on file.
Commercial auto insurance is another necessity, but most commercial commercial policies will write them together as one. Find a good “commercial insurance broker” and ask them to look up your sources, usually the broker-agent knows the insurers very well (as in speed dial) and can get you a good rate, and the insurer will understand the difference. between mobile devices and fixed costs. Generally, commercial liability insurance is based in part on your estimated gross income.
Do not overestimate or you will pay too much, and do not underestimate or you may be audited by the insurance company or they may simply decide that you are not a viable risk. Believe it or not, most commercial insurance policies have a clause in their insurance contracts that they can audit you, and by signing the policy, you agree to those audits in advance. Therefore, it is not wise to falsify or underestimate information. If you find that you may have underestimated, you should call your broker-agent and explain that sometimes they will increase the premium, sometimes they will increase the gross sales estimates for the next year.
Now Florida is a big market for mobile oil changes, however, let’s not forget that there is some competition there, some from over 25 years ago, in fact, insurance is just one aspect or piece of information that one should to consider. before starting such a business. Consider all of this and think about it, and develop a solid business plan.
