What insurance should I check when buying a detailing business?

A detailing business works on other people’s vehicles, often expensive ones, and a single slip can mean a large repair bill. That makes insurance more than a line in the expenses. Before closing, read what the seller carries, what has been claimed and what the policies exclude. Our page on when you need new insurance covers the timing at closing.

Cover for vehicles in the shop’s care

Customers’ vehicles are in the business’s hands while the work is done, so ask your broker how that is covered. Ask whether the policy responds to damage to those vehicles, whether it covers work done at a customer’s site and what the deductibles are. Ask also whether coating or film work is treated differently from washing, and read the exclusions closely.

Mobile vans, keys and overnight vehicles

If the business runs vans, the business vehicles need their own cover, and the drivers and uses named on the policy should match reality. Ask what happens if keys are lost, if a vehicle is stolen from the premises or if a car stays overnight. Any gap is a question for your insurance broker, not a guess.

Claims history and a quote of your own

Ask the seller for claims history and any complaints about damage, and ask whether any are still open. Then have your own broker quote cover for the business as you would run it. Ask your broker whether the policies can move to a new owner, and at what cost and terms.

• Current policies, with the exclusions and deductibles.
• Claims and damage complaints, closed and open.
• Cover for vans, keys and vehicles stored overnight.
• Your own broker’s quote before closing.