Insurance For Small Business

Insurance For Small Business

No matter what type of small business you have, you will need insurance to protect against risks. That includes even a very small mobile car washing business. Not long ago someone who was interested in purchasing an existing mobile car washing company asked about the need for insurance. He wanted to know;

How difficult and expensive is it to obtain proper insurance for the mobile car washing business?”

Insurance For Small Business

Not too bad, go to a commercial independent insurance broker. Ask them about general liability, tell him or her, you will NOT be in the Care, Custody, or Control of the vehicles, and thus, you DO NOT NEED garage keeper’s liability, just a general liability policy, including slip and fall. This of course is if you are just doing fleets and car lots. If you are doing auto-detailing you will need Garage Keeper’s Liability Insurance also.

If you clean car dealerships, then every one of those larger dealerships will want an insurance certificate and most will want to be additionally insured for 1 Million aggregate. You will also need commercial auto insurance, and most importantly Workmen’s Comp, which is a big expense, and why you might consider hiring a temporary agency for your employees, and have the current employees go sign up with them to work for you.

My acquaintance then told me he’d had a meeting with a business broker handling the sale, and hoped to soon; “receive profit and loss statements and tax returns.” This of course is a must if you are buying an existing mobile washing company. And make sure they show insurance expenditure on those documents as well.

He reminded me that; “typically many small business owners will phony these papers up but I will wait and see what happens with this business.” Excellent point, many small businesses do indeed fake such documents, I’ve seen this myself numerous times and have these comments to offer in that regard;

“Trust No One” the CIA Motto. Or consider Ronald Reagan and Henry Kissinger’s tact; “Trust but Verify” and they were right, verify EVERYTHING, do your due diligence. If you find question marks, lower your offer to deal with it, or walk.

Needless to say, when buying a mobile auto cleaning company or mobile car wash get insurance, watch the risks, and do your due diligence before buying any existing company, as you will save yourself lots of money in the future, and not get taken by nonsense. Indeed, I hope you’ve learned something here today and will please consider all this.

By Christian Larkins

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