Restaurant Liability for Valet Damage: Why Hiring a Cheap Valet Company Can Cost You More
Key takeaway: If a restaurant pays a valet rate so low that it is clearly unrealistic, the restaurant may share liability when valet damage occurs—because it should have known the operation could not be properly insured or legally compliant.
Many restaurant owners assume that if something goes wrong with valet parking—vehicle damage, theft, or an accident—the valet company alone is responsible. In reality, restaurants can be pulled into liability claims when valet services are operated at suspiciously low rates.
How Restaurants Become Liable for Valet Parking Damage
Valet parking is considered an extension of the restaurant’s guest experience. When a restaurant offers valet service, it benefits directly from increased guest convenience and higher perceived value.
Because of that relationship, courts and insurance carriers often look beyond the valet contract and ask whether the restaurant exercised reasonable judgment in selecting the valet provider.
If a restaurant hires a valet company operating at rates that could not realistically cover insurance, payroll, and compliance costs, the restaurant may be found partially responsible for any resulting damage.
The Problem With Cheap Valet Parking Rates
Professional valet parking is not just someone parking cars. A compliant valet operation must account for:
Properly trained and supervised staff
Payroll taxes and wage compliance
Workers’ compensation coverage
Commercial auto and garage keepers insurance
Risk management and incident reporting procedures
When a valet company charges a rate that cannot support these requirements, it creates an obvious compliance risk. At that point, the restaurant may be deemed to have constructive knowledge—meaning it should have known the operation was unsafe or illegal.
Joint Liability: What Courts and Insurers Look At
In valet damage disputes, decision-makers commonly ask:
Did the restaurant benefit from offering valet parking?
Did the restaurant approve or manage the valet arrangement?
Was the valet pricing clearly below market norms?
Would a reasonable business owner question the legality of the operation?
If the answer to these questions is yes, liability may not stop with the valet company. The restaurant can be named in lawsuits and insurance claims, even if the valet company was technically “independent.”
Real Risks for Restaurants
Hiring a non-compliant or underpriced valet service can expose restaurants to serious consequences, including:
Guest lawsuits for vehicle damage or theft
Insurance claim denials or coverage disputes
Higher insurance premiums or policy cancellations
Reputational damage from poor guest experiences
Significant management time spent dealing with claims
What initially appears to be a cost-saving decision can quickly become a major financial and operational problem.
How MB&L Parking Reduces Liability Exposure
At MB&L Parking, we price valet services based on real operating costs—not shortcuts. Our rates reflect what it takes to properly insure, staff, and manage valet operations at a professional level.
Restaurants that partner with MB&L Parking benefit from:
Fully insured valet operations
Trained and supervised attendants
Clear procedures to prevent and document incidents
A guest experience aligned with your brand standards
Reduced liability exposure and defensible vendor selection
Cheap Valet Is Often the Most Expensive Choice
When valet damage occurs, “we hired the cheapest option” is not a legal defense. Restaurants are expected to exercise reasonable judgment when selecting service providers.
Choosing a compliant, insured valet operator is not just about service quality—it’s about protecting your business.
Call to Action: Protect Your Restaurant
If you currently use valet parking—or are considering adding it—now is the time to evaluate whether your valet provider is truly protecting you.
Request a professional valet quote from MB&L Parking and ensure your operation is compliant, insured, and defensible.
📞 Call: 201-414-1255
📧 Email: info@mblparking.com
🌐 Visit: mblparking.com