Category: Services

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, 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.

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 the appropriate area. When the guest returns, presents the ticket, and pays the parking fee, the vehicle is retrieved and returned to the guest. In some situations, valet parking is provided at no charge to guests. 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. Hazards increase without proper background checks and monitoring procedures. Ticket and cash reconciliation procedures are very important. Employee theft of client vehicles or property in the vehicles is a significant exposure.

Inland marine exposures include accounts receivable from the service's clients, computers, special floater for valet stations, 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 client would be primarily responsible for any injuries to guests on their premises. Control of guest key could be considered a liability exposure.

Automobile exposures are primarily of a nonownership nature but are significant because valets drive unfamiliar vehicles in congested areas. Some valet services provide shuttle services using owned vehicles. MVRs must be regularly checked. If there are owned vehicles, the age, condition and maintenance are important to consider.

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

Workers compensation exposures are significant. Valets park guests' vehicles in congested areas and can be injured by other vehicles. The number of valets, their ages and experience, field supervision and training are all important. Procedures should be in place to prevent injuries that may be inflicted by irate or inebriated guests.

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, Money and Securities, Computers, Special Floater, Employment-related Practices Liability, Automobile Liability and Physical Damage