Different car washes have different risks. A traditional, low-maintenance model where customers bring their own quarters and wash their own cars are the lowest risk of all, especially because there’s limited interaction between your client’s employees and the customers of their cars. But the risk rapidly escalates from there as car washes change to automated drive-throughs or to full-service car washes.
Which risks increase as car washes increase their services?
Liability coverage for damage to vehicles
At full-service car washes, your client’s employees are getting behind the wheel of several dozen cars a day. Not only does that exponentially increase the risk of damage to each of the vehicles being handled, it means there’s an increased risk of collision between two third-party vehicles that your client is responsible for. If your client is considering adding a full-service option, evaluate the added risk.
Equipment breakdown coverage
The lowest maintenance car washes have relatively few moving parts beyond the dispenser. But automated car washes have several automated brushes, a boiler, and more. As the operation becomes more complex and liable to break, the coverage needs to change to incorporate the higher likelihood of expensive repairs.
Going over insurance limits
Even if your client keeps you informed of ongoing transformations to their business and their overage changes accordingly, the new changes could increase incidents and claims as employees get used to the changes. If your client needs additional coverage for both during and after the transition, let them know before the next claim.
No matter how your car wash clients are changing their business, retaining them is more profitable than letting them go in search of lower risk clients.
Go to Prime Insurance Company to find the excess coverage policies that can help you do that.