My 15-year-old son wants to start detailing neighbors’ cars. He’s borrowing my polisher. I’m proud, but then I thought: “What if he burns through the paint on a neighbor’s Tesla?” Can a minor even get insurance?
Key Takeaways
- Minors Can’t Sign Contracts: An insurance policy is a contract. A 15-year-old cannot legally sign it. The policy must be in a parent’s name or an LLC formed by the parent.
- Adding to Your Policy: If you have a detailing business, you can add him as an Employee or Volunteer. He is then covered under your existing Liability and Garage Keepers.
- The “Hobby” Trap: If you rely on your Homeowners insurance, you are exposed. Homeowners insurance specifically excludes “Business Pursuits.” If he takes money for the job, it’s a business, and Homeowners denies the claim.
- LLC Strategy: Form an LLC with you as the manager and him as a member (or employee). Buy the insurance in the LLC’s name.
The “Why” (The Trap): “Business Pursuits”
Your Homeowners policy covers your kid if he throws a baseball through a window.
It does NOT cover him if he buffers through a hood while charging $50.
That is a Commercial Activity.
Without a Commercial Liability policy, you (the parent) are personally liable for his mistakes because you are his legal guardian.
The Investigation: “I Called Them”
I asked how to insure a teen entrepreneur.
1. Standalone Policy (Next/Thimble)
- Verdict: You (Parent) must sign up. List the business as “John Doe dba Kid Detailing.”
- Cost: ~$50/month.
- Coverage: Covers him completely.
2. Adding to Parent’s Business Policy
- Verdict: Easy. Just add him to the payroll/driver list.
- Cost: Small increase (~$200/yr).
3. Relying on “Luck”
- Verdict: If he damages a $100k car, you get sued. Not worth the risk.
Comparison Table: Kid’s Biz Insurance
| Option | Legal | Coverage | Cost |
| Homeowners Policy | No | Denied | $0 |
| Parent’s LLC | Yes | Covered | Low |
| New Policy (Parent Signed) | Yes | Covered | Medium |
Step-by-Step Action Plan
- Form the Entity: Even a simple Sole Proprietorship in your name (“Parent Name dba Kid’s Detailing”) works.
- Buy a Basic Policy: Get a cheap General Liability + Garage Keepers policy. Apps like Thimble are perfect for this (pause when school starts).
- Supervise the Polishing: Insurance covers negligence, but as a parent, you should ensure he is trained before letting him touch paint.
- Limit the Scope: Maybe start him with “Wash and Vac” only (low risk) before moving to Paint Correction (high risk).
FAQ
Q: Can he drive the customer’s car?
A: NO. He is likely under 18 and driving a customer car for business purposes violates most licensing laws and insurance policies (“underage driver” exclusion). He washes where it’s parked.
Q: Does he need a license?
A: A business license? Probably not for a kid, but check your city.
[IMAGE: Graphic showing “Parent” holding the “Insurance Umbrella” over the “Teen Detailer”.]