Valet Insurance

What is Valet Insurance?

When drivers leave their vehicles with a valet service, they expect their vehicles to be properly taken care of. Should a vehicle be damaged while in a valet’s care, the valet service may be held financially responsible for any necessary repairs. Valet insurance policies help protect valet services from covered risks like this. 

Valet insurance policies are specialized commercial policies that have been uniquely designed to meet valet parking services’ insurance needs. Most policies include several coverages, which can usually be adjusted for a particular valet service’s situation.

What Coverages Do Valet Policies Offer?

Valet policies generally offer protection for cars and other vehicles that are in a valet service’s “care, custody, or control.” (A policies exact language might differ slightly.) Exactly what coverages are offered for vehicles in a valet service’s care, custody or control can vary. 

Most policies offer coverage for collisions. For example, a well-designed policy will normally cover accidents that occur while driving vehicles to or from a parking area.

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Valet Insurance

Some policies will also offer coverage for certain types of theft, but not all policies offer coverage for theft. Additionally, even those policies that do include some form of coverage against theft usually exclude any coverage for weather-related damage. Theft coverage is less common and weather-related coverage is rarely found in valet policies, because drivers frequently have protection from these perils through their own auto insurance policy’s comprehensive coverage.

Finally, some policies combine their coverage for vehicles with other important coverages. For instance, a policy might also include general liability coverage or business interruption coverage. Protections like these can help protect a business from risks that aren’t directly related to driving vehicles.

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What Businesses is Valet Parking Insurance Right For?

Any business that offers valet parking may need valet parking insurance. Few other types of insurance offer coverage for vehicles that are owned by someone else but in a business’ care.

Some examples of businesses that might want valet parking insurance include:

  • Valet parking services that only park cars
  • Restaurants and spas that have valet parking as an available option
  • Hotels and resorts that offer complimentary valet parking for guests
  • Hospitals that provide valet parking for patients and visitors

(Restaurants, spas, hotels, resorts, and hospitals usually only need valet parking coverage if they offer valet services directly. If they contract valet parking out to a third-party service, the service will likely be responsible for purchasing its own insurance.)

Valet Insurance

Can Valet Parking Insurance Premiums Be Deducted on Taxes?

As long as they’re a legitimate business expense, valet parking insurance premiums can usually be written off as a business expense when filing taxes. Because tax litigation changes every year and is complex, however, business owners should check with a professional tax advisor to make sure their valet parking policy’s premiums qualify as write-offs.

What Factors Affect How Much Valet Policies Cost?

Insurance companies take into account many different factors when calculating premiums for valet policies. Just a few of the items that can impact how much a valet service’s insurance policy costs are:

  • The location where a valet service offers valet parking
  • Where cars are parked when in a valet service’s care
  • How many cars a valet service parks
  • Whether a valet service has filed insurance claims in the past
  • What coverages and limits a valet service selects

Make Sure You Have the Right Coverage

How Can Valet Services Get Quotes for Valet Insurance?

Valet parking services and other businesses that need valet insurance can find out how much a policy would cost them by contacting an independent insurance agent. An independent agent can request quotes from different insurance companies that offer valet policies, and then they can help business owners compare different policies’ costs and coverages.

Meet Your Industry Specialist

Jeff Kroeger

Principal, Senior Vice President, and Head of Commercial Lines, Mr. Kroeger also manages the company's hospitality book of business and is that unit's primary producer. He is a graduate of Montclair State University and was named a 2015 Young Gun Insurance Business America.

Jeff has been providing exceptional insurance for restaurants, bars, nightclubs, and more for many years. He understands the unique challenges this industry faces and delivers the right coverage at an affordable price.

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