Valet Parking Insurance

Valet parking services can use Insuranceopedia to compare business insurance quotes from leading carriers. This helps you find the best plan for general liability, property damage, and employee protection.

Why Do Valet Parking Companies Need Insurance?

Valet services deal with high-value assets every single day. Because your team is constantly moving expensive vehicles, the risk of an accident is always present. Even a careful driver might accidentally scrape a bumper against a wall or collide with another car while navigating a tight lot. If you do not have the proper garage keepers liability or commercial auto coverage, your business would have to pay for these repairs out of pocket.

Insurance acts as a vital shield for your company’s finances. It covers the costs associated with property damage, bodily injury claims, and legal defense if you are sued. Beyond financial protection, carrying insurance helps you secure contracts. Venues and corporate clients usually refuse to hire a valet company that cannot show proof of coverage. Whether you are a solo contractor or manage a full team of attendants, having the right policy ensures you can work without worrying about the financial impact of a mistake.

What Insurance Do Valet Parking Companies Need?

Valet parking businesses face unique risks every day. You are responsible for high-value vehicles and the safety of your staff in busy environments. To protect your operation from costly lawsuits or accidents, you need the right mix of policies. Below are the primary business insurance types that valet companies often require.

Garagekeepers Legal Liability Insurance

This is perhaps the most critical policy for a valet service. It covers damages to a customer’s vehicle while it is in your care, custody, or control. General liability usually does not cover damage to cars you are actively parking, so this policy fills that gap. It protects against collision, theft, or vandalism while the car is in your lot.

Example: An attendant accidentally backs a customer’s luxury sedan into a concrete pillar. This insurance covers the repairs to the customer’s car.

Workers’ Compensation Insurance

Valet attendants are constantly on the move, running between stands and parking spots. This policy protects your staff if they get hurt or sick because of their work. It pays for medical bills, rehab costs, and lost wages. Most states require this coverage by law as soon as you hire your first employee.

Example: An employee twists their ankle while running to retrieve a car and requires medical attention. Workers’ comp pays for the hospital visit and their recovery time.

General Liability Insurance

This is the standard starting point for small business protection. It handles claims involving third-party bodily injury or property damage that does not involve the vehicles you are parking. It covers legal fees, settlements, and medical expenses if a bystander gets hurt on your premises.

Example: A guest at a hotel slips on a rug near your valet podium and injures their back. General liability helps pay for the legal costs if they sue you.

Business Owner’s Policy (BOP)

A BOP is a package deal that bundles general liability and commercial property insurance together. It is usually cheaper than buying these policies separately. It protects your business assets and provides liability coverage in one convenient plan.

Example: A small fire in your back office damages your computer and injures a delivery person. A BOP helps you handle both the property damage and the injury claim.

Commercial Auto Insurance

You need this if your business owns vehicles, such as shuttle vans or company cars used by managers. Personal auto policies generally do not cover accidents that happen during work hours. Commercial auto insurance covers medical bills and vehicle repairs if your company vehicle is in a crash.

Example: Your manager is driving the company-owned shuttle van to a new site and rear-ends another car. This policy covers damage to both vehicles. Valet businesses typically pay around $76 per month, or $909 annually, for this specific coverage.

Hired And Non-Owned Auto (HNOA) Insurance

Sometimes employees use their own cars for work errands, or you might rent a vehicle for business use. HNOA protects your business from liability if an employee causes an accident in a vehicle the company does not own. It does not cover damage to the employee’s car, but it covers the liability lawsuit against your business.

Example: You send an attendant to the bank in their personal car to deposit cash, and they hit a pedestrian. HNOA helps cover the legal costs for the business.

Cyber Liability Insurance

If your valet service uses digital systems to store customer data, credit card numbers, or reservation details, you face digital risks. This insurance helps cover the costs associated with data breaches, including notifying customers, legal fees, and credit monitoring.

Example: Hackers break into your digital reservation system and steal customer credit card information. Cyber liability pays for the notification costs and legal fallout.

Umbrella Insurance

This provides a safety net when a claim exceeds the financial limits of your other policies. It sits on top of your general liability or commercial auto insurance. If a lawsuit is massive, umbrella insurance pays the difference, so you do not have to pay out of pocket.

Example: A serious accident results in a lawsuit for $1.5 million, but your general liability policy only covers up to $1 million. Umbrella insurance covers the remaining $500,000.

Business Personal Property (BPP) Insurance

This covers the movable items your business owns. For a valet company, this might include key storage cabinets, podiums, radios, computers, and office furniture. It pays to repair or replace these items if they are stolen or destroyed by a fire.

Example: Someone breaks into your main office and steals your dispatch radios and laptops. BPP covers the cost to replace this equipment.

Commercial Property Insurance

If you own a building or lease an office space for your operations, this policy is essential. It protects the physical structure itself from perils like fire, storms, theft, and vandalism.

Example: A severe storm damages the roof of your headquarters, causing leaks in the dispatch room. Commercial property insurance pays for the repairs to the building.

Cheapest Valet Parking Workers’ Compensation Insurance

The cheapest option for Workers’ Compensation is Pie Insurance, with an average annual cost of $918.

Note: Estimates are based on a small valet operation with an annual payroll of approximately $100,000 using standard industry classification codes. Actual premiums will vary based on your state’s specific laws, your claims history (experience modification rate), and the specific number of full-time vs. part-time employees.

Cheapest Valet Parking General Liability Insurance

The cheapest option for General Liability is Next Insurance, with an average annual cost of $368.

Note: Estimates are based on a standard $1 million per occurrence / $2 million aggregate policy for a small business with annual revenue under $150,000. Actual premiums will vary depending on the specific location of the parking operations, the volume of cars handled, and any prior liability claims.

Cheapest Valet Parking Business Owner’s Policy

The cheapest option for a BOP is Next Insurance, with an average annual cost of $729.

Note: Estimates are based on a bundle including General Liability and minimal Commercial Property coverage (e.g., for a valet kiosk or small office equipment). Actual premiums will vary based on the value of the property being insured, the deductible selected, and whether additional endorsements like cyber liability are included.

How Much Does Valet Parking Insurance Cost?

Valet parking businesses typically pay an average of $154 per month for general liability insurance. However, the final cost of business insurance depends on several specific variables, starting with where you work. Operating in areas with heavy traffic, dense populations, or high crime rates increases the likelihood of theft and vandalism. Consequently, these locations usually come with higher premiums.

The scale of your operation also impacts the rate. High revenue and a large volume of cars equate to more exposure to risk. If your team handles more vehicles, the odds of accidents or damage naturally rise. Furthermore, valet services that specialize in high-performance or luxury automobiles will face steeper costs than those parking standard vehicles.

Insurance providers also evaluate the safety of your parking facilities and the driving records of your employees. Finally, the price shifts based on the coverage limits you select and whether you bundle multiple policies. It is crucial to prioritize a plan that adequately covers your liabilities rather than simply selecting the cheapest option.

Note: Estimates are based on national averages for small-to-medium valet parking operations with standard policy limits (typically $1M per occurrence / $2M aggregate for liability). Actual premiums will vary significantly based on your specific location, annual revenue, number of employees, claims history, and deductible choices.

How Is Your Valet Parking Insurance Cost Calculated?

Insurance providers look at specific risk factors to decide the price of your valet parking premiums. The size of your team is a major detail. A business with many employees typically pays more than a single owner. The driving records of your valets are also important. If your staff members have a history of accidents, your rates will go up. However, proper training and strict safety rules can help keep these costs down.

Your location is another key factor. Rates change based on your state, city, and neighborhood. You will likely pay more if you operate in an area with high rates of theft, vandalism, or traffic accidents. The parking facility itself matters as well. A secure garage with cameras and bright lights is often cheaper to insure than an open lot.

Underwriters also check your past claims. A history of filing for insurance payouts makes you look like a higher risk to the provider. Finally, the value of your equipment, your specific coverage limits, and your business structure will all impact the final price.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.