Mobile Oil Change Business and General Liability Insurance Considered

Not long ago, I got an email from a gentleman wishing to set up a mobile oil change business in Florida. He was concerned about what sort of insurance he might need and was under the impression that a 1 million dollar commercial liability policy was needed up and beyond his work truck vehicle commercial auto policy. Okay so, let’s talk about this; is he correct?

It turns out that he most definitely is, you see commercial auto is not the same as completed operations or the potential liability while working. For instance, if a car catches on fire that you are working on, your commercial auto policy isn’t going to cover it. Do you see that point? So, this is the advice I explained to him;

You will need most likely want to get a commercial insurance policy; $1 million aggregate, 300K per occurrence general liability, with a “garage keeper’s liability” notation, and there will be some 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 need, but most commercial business policies will write them together as one. Find a good “commercial insurance broker” and have them scout out their sources, usually the broker-agent knows the underwriters very well (as in speed-dial) and can get you a good rate and the underwriter will understand the difference between mobile and fixed costs. Generally the commercial liability insurance is partly based on your estimated gross income.

Don’t over estimate or you will pay too much, and don’t underestimate or you may get audited by the insurance company or they might simple decide you are not a viable risk. Believe it or not most commercial insurance policies do have a clause in their insurance contracts that they may audit you and by signing the policy you pre-agree to those audits. Thus, it’s unwise to falsify information or underestimate. If you find that you may have underestimated you need to call your agent-broker and explain that, sometimes they will add to the premium, sometimes up the next year’s estimates for gross sales.

Now then, Florida is a great market for mobile oil changes, however, let’s not forget there is some competition there, some long-standing 25+ years in fact and so, insurance is only one aspect or piece of information which one needs to consider before starting a business of this type. Please consider all this and think on it, and develop a strong business plan.

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Business Liability Insurance Quote Guide: What Business Owners Need to Know About Insurance

How much insurance does your company need? Do you even need it for business purposes? At the very least, you will need to search for a general business liability insurance quote. GL insurance protects your company’s assets and pays for medical costs and other obligations should someone be injured on your property, or there are damages caused by one of your employees. This kind of insurance will also help cover the costs of your legal defense and settlement if someone tries to sue your place of business.

Do you really need it, though? Yes, sadly, you do. This is a litigious society and people will sue anybody over anything, even if it seems silly and trivial. If you have employees, you can’t control all of their actions every second of the day. What if they make a mistake which leads to a situation where someone is harmed? Or what if there are damages due to neglect? General business liability insurance will help protect your organization in the event that something like this occurs.

You’ll first want to determine how much coverage you will need before you start looking for a business liability insurance quote. The type of business you run will affect the amount of coverage and the perceived risk with which it is associated. A building contractor will obviously require more coverage than a graphics designer. Do a bit of industry research if you haven’t done so already before investing in any particular policy. Some contractors may also add you to their general liability policy, depending on your line of work. You could be an additional name to be insured during a project.

Premiums and Deductibles in Your Business Liability Insurance Quote

Like any type of insurance, there are premiums and deductibles involved. Generally, the higher the deductible you agree to pay, the lower the premiums, and vice versa. There are a variety of factors that affect the type of business liability insurance quote you get, such as the physical location of your business, building type, flood zones, local fire protection services, etc. all in addition to the type of business you are involved in.

When you begin getting quotes, take the time to read the terms and conditions very carefully. Take a couple of minutes to research the insurers involved to see if they have a high rating and whether they have experience dealing with businesses in the industry you are involved in.

It’s very easy to find a business liability insurance quote online – but you do need to take a few minutes to make sure it’s the right option for you. Hiscox Business Insurance is definitely a great place to start. Get a quote online or call 1-866-283-7545 to learn more about your options.

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