Reader’s Question:
I’m a valet parking attendant in Minnesota and I want to know who should pay for my auto insurance?
Chris
St. Paul, MN
All valet parking attendants like you need to have their own personal automobile insurance. However the bigger question is regarding the garage keeper’s insurance (that pays for damages to non-owned vehicles) that is required in the valet industry. In operating a valet parking company, there are different options as to the kind of insurance and how employees are paid. In states (like MN) where tip credit is not allowed, employees must be paid the minimum wage as set by the Fed or State, unless they are 1099 contractors. It’s important to know this difference prior to answering the question above because that will change who pays for the (very expensive) insurance coverage required in the valet industry. If a valet parking attendant is a legal employee of a parking company, then the financial burden of insurance must fall upon the parking company. If a parking company hires staff as 1099 contractors, then they could oblige the attendants to get their own insurance. The problem here is that I don’t know of anybody that could afford the substantial premiums for garage keeper’s liability coverage on the pay of a valet attendant, let alone take that amount of risk exposure personally. While this answer may not be applicable nation-wide, this is what research studies show regarding labor laws and insurance for the valet parking industry so far.
Tags: car insurance
