Insurance For Valet Parking Services

If you want to start a valet business, one of the tasks you will need to take care of before you get started is choosing appropriate insurance coverage. This guide will go over the basics of valet insurance, including types of policies, costs, and more.

Who Needs Valet Parking Insurance?

Any company that offers valet parking services needs valet liability coverage.  Even if that is not their main business activity.

Here are some examples of businesses that may require valet driver insurance.

• Valet operators
• Parking and valet services
• Parking companies
• Parking garages
• Hotels
• Casinos
• Restaurants
• Hospitals
• Event venues
• Event companies
• Shopping malls
• Entertainment centers

What Valet Insurance Does and Does Not Cover

Valet insurance covers damage to third party vehicles, property and persons when someone else’s automobile is in your care.

There are, however, some exceptions. If the vehicle under your care is stolen, or something is stolen from a customer’s car, that will not be covered. Neither will vandalism.

What about damage from weather? That depends. If the service you are offering is specifically covered parking, then your insurance may cover it. If, however, it is not, then it won’t.

The customer is not without recourse if theft, vandalism, or weather damage occurs. But it is their own personal auto insurance that will cover them in case of these things, not your commercial valet insurance or legal liability coverage.

Types of Valet Parking Insurance Policies

Here are the different types of insurance for valets and parking businesses:

• General liability insurance: This is a general type of business insurance that valet companies require. It protects third parties and their property. If someone sues you for injuring them or damaging their vehicle or anything inside, your general liability insurance will cover you.

• Worker’s compensation: If you have any employees, you are required by law to pay for worker’s compensation. If they get sick or injured on the job, worker’s comp will pay out.

• Garage keepers liability insurance: This is a specialized insurance product specifically for those who own a parking garage or lot. It is also called “non-owned auto liability” insurance. If someone’s car is damaged while parked in your garage or lot, the policy can pay out.

How Much Does Insurance For Valet Parking Cost?

What will insurance for a valet parking business cost you?

For around $1 million in general liability insurance, we are seeing an average cost of around $50 per month for valet insurance. But we have also seen quotes as low as $35 a month.

For garage keepers insurance, we are seeing costs closer to $100 per month. Here are some of the factors that can impact how much you pay for valet and/or garage keepers insurance:

• Exact nature of your business: A hotel that just parks the occasional car may be taking on less risk than a parking garage that is full of cars every day. Then again, if the hotel valet has to drive some distance to get to the garage where they are putting the vehicles, that could add different sorts of risks en route. The insurance company will assess the risk your particular business poses before giving you a quote.

• Location: You will probably pay more for valet insurance in a district that is notorious for crime or bad traffic than you would for valet insurance in a less hazardous area.

• Payroll: The size of your payroll will have an effect on the rates you will pay for worker’s compensation. The larger your payroll, the more expensive the worker’s comp will be.

• Types of insurance: The more types of insurance you need, the more expensive your valet insurance will be overall. Someone who only needs general liability insurance will not pay as much as someone who also needs garage keepers liability insurance and/or worker’s comp.

• Deductible and maximum cap: Your deductible is the amount you have to pay out of pocket before your insurance starts to pay. A higher deductible means lower monthly insurance costs. The maximum amount also affects monthly costs; you will pay higher monthly costs for a higher maximum cap.

• Claims history: If you have a long history without any claims, you may qualify for a competitive rate since you are seen as a low-risk customer. If, on the other hand, you have made claims in the past, you will pay higher monthly premiums to offset the higher risk you pose to the insurance company. This is especially true if your prior claims are from any business that offers valet parking services.

• Bundling and discounts: Ask what discounts you might qualify for when you apply for valet insurance. You might get discounts for bundling policies with the same carrier, and there could be other opportunities as well.

Where to Get Valet Insurance Coverage Quotes?

If you are ready to get insurance for valet parking to protect your business, click below for personalized quotes from our recommended valet insurance companies.