Category: Service Businesses

SIC CODE: 7299 Miscellaneous Personal Services, Not Elsewhere Classified

NAICS CODE: 812930 Parking Lots and Garages

Suggested ISO Commercial General Liability Code: 46603, 46604

Suggested Workers Compensation Code(s): 8392

Description of Operations: Valet parking services are offered by hospitals, restaurants, shopping malls, and country clubs, hotels, museums and other retail and service organizations as a courtesy for their guests. The organization does not use its employees to provide this service. Instead, it will contract with a valet parking service. Individuals may also hire these services for parties at their homes or for special events. Guests stop at a marked valet station, give the vehicle’s key to the attendant, and receive a ticket. The valet parks the vehicle in a designated area. When the guest returns, presents the ticket and pays the parking fee (if any), the attendant retrieves the vehicle and returns it to the guest. The guest may tip the attendant. Additional services such as automobile washing, detailing and shuttle services may be provided.

Property exposures are from office operations and are minimal.

Crime exposures are from employee dishonesty and theft of money and securities due to the accumulation of cash collected by attendants when parking services are provided for a fee. Employees may steal client vehicles or property stored inside those vehicles. Hazards increase without proper background checks and reconciling tickets with cash collected from customers.

Inland marine exposures include accounts receivable from the service's clients, computers, a special floater for property kept at valet stations (such as signs, traffic cones, and umbrellas), and valuable papers and records for client contracts and any required permits or licenses.

Premises liability exposures are limited due to lack of public access to the valet’s office location. Since valet parking is done at clients’ locations, the clients would be primarily responsible for any injuries to guests on their premises. Control of guest keys could be considered a liability exposure.

Automobile exposures are primarily of a nonownership nature but can be high because valets drive unfamiliar vehicles in congested areas. All drivers must have a valid driver's license and acceptable MVR. Some valet services provide shuttle services using owned vehicles. Vehicles must be regularly maintained and records kept at a central location. If vehicles are taken home, there should be written procedures regarding personal use by employees and their family members.

Garagekeepers liability exposures are high because the valet service accepts the customer's vehicle and must return it in undamaged condition. Lack of control over keys could result in a guest’s vehicle being stolen.

Workers compensation exposures are high. Valets park guests’ vehicles in congested areas and can be injured while driving or by other vehicles. The number of valets, their ages, and experience, field supervision and training is all-important. Valets should be trained to handle irate or inebriated customers. An accumulation of cash may be a target for robbers, resulting in injury to valets.

Minimum recommended coverages:

Business Personal Property, Accounts Receivable, Valuable Papers and Records, Employee Dishonesty, General Liability, Employee Benefits Liability, Commercial Umbrella Liability, Hired and Nonownership Auto Liability, Garagekeepers, Workers Compensation

Other coverages to consider:

Buildings, Earthquake, Flood, Money and Securities, Computers, Special Floater, Cyberliability, Employment-related Practices Liability, Automobile Liability and Physical Damage, Stop Gap Liability