I have a question for anyone knowledgeable about business insurance. I have been considering (for quite some time) offering used vehicle inspections. IOW, inspect and test drive the vehicle, and then write a report on the findings. What kind of insurance would I need, since I would be driving these cars for test drives? Thanks!
business insurance question
- Thread starter zrxkawboy
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You might consider Goggling "errors and omissions" coverage.
In general E&O covers...
Failure to deliver promised services
Negligence in providing professional services
Poor, incorrect, or incomplete work
Errors and oversights
Even if a law suit is frivolous with no chance of a judgement you will still have to spend a lot of time and money to defend yourself.
In general E&O covers...
Failure to deliver promised services
Negligence in providing professional services
Poor, incorrect, or incomplete work
Errors and oversights
Even if a law suit is frivolous with no chance of a judgement you will still have to spend a lot of time and money to defend yourself.
MolaKule
Staff member
What OneEye said plus I would get my business set up as an LLC.
In addition to error and omissions coverage, you'll probably need some sort of commercial auto coverage since you'll be driving multiple vehicles that are not yours. I doubt your own personal coverage would apply since it is for a business. You'll probably be looking at $2000-$3000/year just in auto coverage and errors/omissions coverage. There is also the insurance for the property that you work out of, as well as business licensing.
Unless you already own a repair shop that has the insurance in place, it sounds like a pretty limited retail market. I don't see any real potential-especially since most retail car buyers can have a reputable shop do the same thing for $100 or so.
What did your market analysis tell you about the demand and potential for such a service in your area?
Unless you already own a repair shop that has the insurance in place, it sounds like a pretty limited retail market. I don't see any real potential-especially since most retail car buyers can have a reputable shop do the same thing for $100 or so.
What did your market analysis tell you about the demand and potential for such a service in your area?
Originally Posted By: MolaKule
What OneEye said plus I would get my business set up as an LLC.
One can become insurance poor but an umbrella policy, so called, is worth looking into. In most states a vehicle insurance policy does not cover business use unless that rider is added. Best bet is to tell an agent what you are planning to do and see what he suggests. Then hold on to your wallet.
What OneEye said plus I would get my business set up as an LLC.
One can become insurance poor but an umbrella policy, so called, is worth looking into. In most states a vehicle insurance policy does not cover business use unless that rider is added. Best bet is to tell an agent what you are planning to do and see what he suggests. Then hold on to your wallet.
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LLC, liability insurance, and a good waiver like the engineers that do home inspections have. A waiver telling a customer that you're not responsible for repairs to their vehicle should something be wrong with it that you might not have discovered. Food for thought.
How long have you been a car mechanic ?
Originally Posted By: demarpaint
LLC, liability insurance, and a good waiver like the engineers that do home inspections have. A waiver telling a customer that you're not responsible for repairs to their vehicle should something be wrong with it that you might not have discovered. Food for thought.
SO what's the customer actually paying for then?
LLC, liability insurance, and a good waiver like the engineers that do home inspections have. A waiver telling a customer that you're not responsible for repairs to their vehicle should something be wrong with it that you might not have discovered. Food for thought.
SO what's the customer actually paying for then?
Originally Posted By: HerrStig
Originally Posted By: demarpaint
LLC, liability insurance, and a good waiver like the engineers that do home inspections have. A waiver telling a customer that you're not responsible for repairs to their vehicle should something be wrong with it that you might not have discovered. Food for thought.
SO what's the customer actually paying for then?
An evaluation and expert opinion on the vehicle, which he can have his local mechanic do in a shop with a lift, and diagnostic equipment. If the OP wants to offer a warranty on his services he should go for it. That would set him apart from the local shop. Just spell it all out, in detail as to what he's covering and what he's not covering. Business 101.
Originally Posted By: demarpaint
LLC, liability insurance, and a good waiver like the engineers that do home inspections have. A waiver telling a customer that you're not responsible for repairs to their vehicle should something be wrong with it that you might not have discovered. Food for thought.
SO what's the customer actually paying for then?
An evaluation and expert opinion on the vehicle, which he can have his local mechanic do in a shop with a lift, and diagnostic equipment. If the OP wants to offer a warranty on his services he should go for it. That would set him apart from the local shop. Just spell it all out, in detail as to what he's covering and what he's not covering. Business 101.
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