Not long ago, I received an email from a gentleman who wanted to start a mobile oil change business in Florida. He was concerned about the type of insurance he might need and had the impression that a $ 1 million commercial liability policy was needed in addition to the commercial car insurance for work vehicles. Okay, let’s talk about this; is he right?
It turns out that it certainly is, you see that the commercial car is not the same as the completed operations or potential liability while you work. For example, if a car catches fire on which you are working, your commercial policy will not cover it. See that point? So this is the advice I explained to him;
You will most likely need to obtain a commercial insurance policy; $ 1 million aggregate, $ 300,000 for all general liability, with a “garage owner liability” notation, and there will be some customers who may ask for more, and even request to be insured further, not just an insurance certificate on file.
Commercial auto insurance is another necessity, but most commercial commercial policies will write them together. Find a good “commercial insurance broker” and let them find out their s, usually the broker agent knows the subscribers very well (as in the speed dial) and can give you a good price and the subscriber will understand the difference between mobile and fixed prices. Commercial liability insurance is generally based in part on estimated gross income.
Don’t overestimate or pay too much and don’t underestimate or you may be controlled by the insurance company or they may simply decide that you are not a viable risk. Believe it or not, most commercial insurance policies have a clause in their insurance contracts that can control you and by signing the policy you consent to such audits. Therefore, it is not wise to falsify information or underestimate. If you find that you may have underestimated, you need to call your broker agent and explain that sometimes they will add to the premium, sometimes the next year’s estimates for gross sales will increase.
Now, Florida is a big market for mobile oil changes, however, let’s not forget that there is some competition there, some years of fact for more than 25 years and therefore, insurance is only one aspect or information that must be considered before starting an activity of this type. Please consider this, think about it and develop a solid business plan.
by Lance Winslow