Do Private Valet Companies Need Special Insurance?

Valet parking is extremely popular in the United States. You can find valet parking in restaurants, hotels, and even hospitals. Despite many people who are willing to pay a service to park and attend to their cars, there are also high rates of accidents, vandalism, theft, and other incidents. This means that valet companies do need to have a special type of insurance to protect themselves.

Parking Statistics

Most valet parking incidents occur within a parking lot instead of on a street. Each year 300,000 accidents occur in parking lots. Half of all non-traffic crashes involved backing over either pedestrians or bicyclists.

What Does Valet Parking Insurance Cover?

What you need to ensure is covered with Private Valet Colorado insurance is liability issues. There are risks with both vehicle damage, but also the lives of drivers and pedestrians. 

Good insurance will address the following areas:

  • General liability: Covers injuries to a person or property that is due to the negligence of a valet attendant. This also includes direct injuries that happen due to hitting a pedestrian.
  • Garage keepers liability: This type of plan covers damages to vehicles in parking lots that are under the care of a valet company. It includes crashes and even theft.
  • Workers compensation: In case of an issue that arises with the valet workers, this policy offers both disability and medical coverage for valets. It can offer reimbursement for lost wages during recovery.

What Valet Parking Insurance Does Not Cover

There are some instances that occur that are not covered by parking insurance. These are beyond the responsibility of the insurance and are that of the valet company or property owner. 

  • Vandalism or theft: If the valet staff did all they needed to do in terms of parking and locking the cars but yet the car is stolen, your company will typically not be held liable. In this case, personal automobile insurance would cover damages, but a deductible may need to be paid.
  • Weather-related damage: When it comes to damage from windstorms, hail, lightning, flooding, or falling objects, the valet company is not responsible. The only case it would be is if the valet company promised covered parking and then the vehicle is damaged outside.
  • Theft of contents: If a valet company mentions on signs that they are not liable for personal property left in vehicles, then this would not be covered under insurance. This is why you must post a sign to prevent this. 

Where to Find the Best Valet Parking Insurance Quotes

Choosing valet parking insurance is an important consideration. Typically you can obtain this insurance in the same location that you obtain other forms of business insurance. Regardless, it is essential to obtain this insurance as a company because it keeps all parties involved safe