I finally signed the lease on a 1,500 sq ft bay to get my detailing business out of the heat. I sent my mobile insurance certificate to the landlord, and he laughed. “This is useless,” he said. “You don’t have Fire Legal Liability or Premises Medical.” I couldn’t pick up the keys until I completely overhauled my policy.
Key Takeaways
- Premises Liability is Mandatory: Mobile policies cover you at the client’s location. Shop policies cover your location. You need to add the specific shop address to the Declarations page.
- Damage to Rented Premises: If you accidentally burn the shop down, a standard GL policy might not cover the landlord’s building unless you have “Damage to Rented Premises” (Fire Legal Liability) with a limit of at least $50k or $100k.
- Garage Keepers “On Hook”: Your mobile “Garage Keepers” limit might be too low. In a shop, you store cars overnight. If the shop burns down with 5 cars inside, do you have $300,000 in coverage?
- Theft Risk Increases: Tools in a van are one risk; tools in a shop are a sitting target. You need to increase your Business Personal Property limit.
The “Why” (The Trap): The “Designated Premises” Limitation
Mobile policies are written as “Roaming” or “Mobile Operations.”
Fixed policies are written as “Premises-Based.”
The Trap: If you start working in a shop but keep your mobile policy, and a client slips on your floor, the insurer will deny the claim because the accident happened at an “Unlisted Location.”
Furthermore, landlords require you to name them as an “Additional Insured,” which many mobile-app policies (like Thimble) struggle to do correctly for commercial leases.
The Investigation: “I Called Them”
I priced the transition for a business growing from a van to a shop.
1. Mobile-Only Policy (Progressive)
- Current Cost: $1,200/year.
- Shop Coverage: None. They required a rewrite to a “Garage” policy.
2. Commercial Garage Policy (The Hartford)
- New Cost: $2,500/year.
- Coverage: Included $100k for “Damage to Rented Premises” and $50k for shop tools.
- Verdict: Necessary expense. The jump in price reflects the risk of having a physical building that can burn down.
3. Landlord Requirements
- My Analysis: I reviewed three commercial leases. All required $1 Million General Liability and a Waiver of Subrogation. Mobile policies rarely include the Waiver of Subrogation without a fight.
Comparison Table: Mobile vs. Shop Insurance
| Feature | Mobile Policy | Shop (Garage) Policy |
| Location | Client’s Driveway | Your Bay |
| Slip & Fall | Covered (Off-Premises) | Covered (On-Premises) |
| Overnight Storage | Excluded | Covered |
| Fire Legal Liability | $0 | $100,000+ |
| Cost | Low | Medium/High |
Step-by-Step Action Plan
- Don’t Sign Yet: Get the “Insurance Requirements” section of the lease before you sign. Send it to your agent.
- Update “Garage Keepers”: Calculate the max value of cars you will hold overnight. If you have two Porsches and a BMW in the bay, your limit needs to be $300k, not the mobile standard of $50k.
- Add “Tenant’s Improvements”: If you build out a waiting room or install a wash bay, insure those improvements under your Property coverage.
- Security System Discount: Install a monitored alarm and cameras immediately. It often drops the shop premium by 10-15%.
FAQ
Q: Can I keep doing mobile work too?
A: Yes, just ensure the policy covers “All Operations,” both on and off premises.
Q: Does my policy cover the lift I installed?
A: Only if you listed it under “Business Personal Property” or “Equipment Breakdown.”
[IMAGE: Diagram showing “Mobile Zone” (Customer Home) vs. “Fixed Zone” (Shop) and the coverage gap in between.]