Question
What is the name of your state? Minnesota
I am currently attempting to start a vehicle immobilization company. Immobilization is the process of placing a locking device on the wheel of illegally parked vehicles on private property. We have been unsuccessful in finding a general liability policy for any state. Would it be reasonable to approach surplus lines brokers who work specifically in the UK and the US? Considering that wheel clamping or vehicle immobilization is common throughout England. Are underwriters inclined to mimic policies that exist in another country and bring them here? I've discovered that many universities and municipalities immobilize vehicles, yet their insurance companies refuse to work with me? How is this fair? It has also been suggested that I fraudulently start a cover business like towing, security or valet parking. The final option is that I operate without insurance and when the city I'm operating in creates an ordinance about this that I piggyback on their general policy, due to the inexistance of a policy elsewhere.
Jeremy Blankenship
Watch Dog Vehicle Services
Answer
Many muni entities who boot cars also have a wide variety of liabilities, with their boots being but a small risk, and often are permissively uninsured or covered by an umbrella policy. If you operate without insurance and without appropriate permits or license you create an even bigger risk unless you enter into contracts with these entities, whether or not you have insurance.