For some people, their cars are their pride and joy; for others, it’s just a way to get from A to B (and maybe C at the weekend). Whatever way they look at their motor, it’s something any driver will have to pump a lot of money into, so when they entrust it to your car valeting service, they need to know it’s in safe hands.
Of course, the quality of your work is your calling card too, so providing a top-notch service in your best interests. Part of that is giving your customers to the peace of mind that you have everything covered with your public liability insurance.
What does public liability cover me for?
With all the best will in the world, things can go wrong. If a customer has their property damaged, in this case, their car, they can make a claim against you for the cost of that damage. They can also seek compensation if your work causes them to suffer injury or some form of loss. In fact, a person doesn’t have to be one of your clients to make a claim against you. Anyone suffering injury, damage or loss because of the work you carry out can take a case.
Public liability cover will meet the cost of any expenses arising from injuries, such as hospital bills, or damages to a person’s property. It will also meet the legal costs of any case brought against you. However, there are some exclusions which you will need to be aware of and for which you may need to obtain extra cover.
Products liability cover
You’ll no doubt take great pride in getting a customer’s car gleaming and have your own tried and trusted products to get the job done. But if you supply products to a third party and they turn out to be defective or cause damage or illness, you can be open to a claim. Product liability insurance can protect from the cost of any such claim.
Financial loss cover
While this is not a part of your basic public liability policy, this an optional extra. While public liability can cover things like hospital costs and other associated expenses, financial loss cover can meet the cost of claims when your customers are out of pocket.
Say you damage a car or van which is used as a service vehicle during the course of your car valeting work. Your customers could be a taxi driver or delivery driver and rely on their vehicle to make a living. If they are off the road for a lengthy period, they could make a claim against you for loss of earnings. This is where financial loss cover comes in handy.
Employer’s liability insurance
Employer’s liability insurance is a legal requirement if you have people working for you in your car valeting business. It protects you from claims made against you by employees if they are injured or suffer loss or damage in the course of their work.
How can I keep down the cost of car valeting insurance?
Much like the choice of services you’ll offer as a car valeter, you get what you pay for when it comes to insurance. If you want to keep the cost down, you can consider taking out a bigger excess. Of course, that means you would have to pay more of your own money towards any claim, but if you’re confident that you’re unlikely to fall foul of claim, it may be a prudent move.
You may be required to have a certain level of public indemnity cover, sometimes as much as £5 million, but if you feel you don’t require that much cover, you can reduce it to a standard limit of £1 million, which can also help cut your premiums.