Valet parking is popular at upscale restaurants and hotels and is even becoming more common in hospital settings. By offering valet services, you set your business apart. But with its increase in popularity comes an increase in risk.
A valet attendant, though they may be experienced and safe drivers (with a valid driver's license, of course), are commonly operating unfamiliar vehicles. They may get in a car accident or hit a pedestrian. Someone's car may get damaged in the business's parking lot. All of these risks come with a hefty price tag, which is why any business that offers valet parking needs comprehensive insurance coverage as part of its risk management.
Who needs valet parking insurance coverage?
- Parking Companies
- Valet Parking Services
- Parking Garages
- Special Events Companies
- Shopping malls
- Entertainment complexes
Anyone who offers valet parking services should invest in this coverage.
What Does Valet Insurance Cover?
Three common risk areas should be addressed by valet business insurance.
General Liability Insurance
General liability coverage typically includes coverage for third-party property damage and third-party bodily injury. If a valet staff gets in a car accident and causes physical damage to a customer's car, the damage would be covered by general liability coverage. Likewise, anyone injured in the accident will have their medical expenses and any potential monetary settlements covered by the liability policy.
Garage Keepers Legal Liability Insurance
Garage Keepers Liability Insurance offers coverage for vehicles parked in parking lots or parking garages or otherwise in your "Care, custody, or control." Essentially, as the property owner, you hold the legal liability if someone's vehicle is damaged while in your care. This insurance policy would cover damages.
If you're a small business, you may be able to purchase a business owners' policy that can include things like non-owned auto liability (garage liability), garage keepers' legal liability, and more.
Workers Compensation Insurance
Anyone employed by your valet company or business should be covered under workers' compensation insurance. Workers' compensation would cover your employee's lost wages and medical expenses if they are injured while on the job.
Other liability coverages—such as garage liability—are available through most insurers. We recommend speaking with an experienced insurance agent to help determine your insurance needs.
How Insurance Works for a Valet Parking Service
Let's say your restaurant offers patrons a complimentary valet service. On a particularly busy night, you have multiple valet assistants running back and forth. Unfortunately, one of the assistants is driving and his view is obscured. He pulls a guest's car out into oncoming traffic and is broadsided.
Thankfully, he's okay, but the customer's vehicle is totaled. Because you have general liability insurance, the cost to repair the car is covered by your insurance company. Likewise, the injuries to the valet are paid for because you have workers' compensation insurance.
What Isn't Covered by Valet Parking Insurance?
There are some main exclusions from valet parking insurance.
Exclusion #1: Vandalism + Theft
Even if vandalism or theft occurs while someone's vehicle is in your parking lot, it's usually not covered by liability coverage. Instead, theft and vandalism fall under the guest's personal auto insurance.
Exclusion #2: Weather-Related Damage
Likewise, unless the customer is paying for covered parking, any damage covered by weather-related incidents is also excluded. The damage would be paid for by the customer's auto insurance policy.
How Much Does Valet Parking Insurance Cost?
The average cost of liability insurance for a small business starts at around $35–$60 monthly. What you pay for a monthly premium will vary depending on the size of your business, its location, the services you offer, how many employees you hire, and more.
Get a Free Quote for Your Small Business
If you offer valet parking at your business or run a valet service, there are coverage options available to protect your business. We work with numerous independent agents who can help you find the right insurance products for your business. Submit your zip code at the top of the page to get the process started or give us a call at 877-907-5267.