Unique Risks Facing the Motor Trades Industry
In addition to the usual risks facing most businesses (see our Business Insurance page for more details), there are some unique risks that need to be considered when designing an insurance package for mechanics, smash repairers, and other associated industries.
Broadly speaking, these risks can be split into:
The most common claim we manage for our motor trades clients is for rectification and resultant damage of faulty work. Let’s face it, mistakes are going to happen, especially when working on something as complex as an engine.
Standard liability policies exclude cover for any rectification of faulty work. This could leave your business exposed to significant costs in the event one of your employees makes a mistake.
However, there are liability policies specifically deigned for the motor trades industry that include a sub-limit of cover for rectification of faulty work.
As a mechanic or panel beater, accidental damage to one of your customers cars while at your workshop is a real risk.
Under a motor trades insurance policy, you can select to insure your customers vehicles while at your workshop.
Your insurance package can include cover for damage to customers vehicles while:
- You’re testing driving them,
- Moving them around the workshop, and
- Against general perils such as theft, flood, hail, malicious damage and fire.
This is where things can get a little complicated, because depending on your policy wording and the circumstances of the claim, coverage crosses between different section of your policy, or in some instances, you may find you don’t have any cover at all.
It’s best to have a chat about the coverage you require for your customers vehicles, and we can structure an insurance solution to meet your needs.
If your business issues road worthies, safety certificates or valuations you do have a professional indemnity exposure and need to make sure your insurance package includes cover for this.
Please refer to our Business Insurance page for more information about other areas of cover that will form part of your motor trades insurance package.
Not to sure what you’re covered for. Don’t put your business and your livelihood at risk. Call us today and we can conduct a comprehensive review of your insurance needs. Also, because we specialise in insurance for mechanics and smash repairers, we’re pretty confident we can reduce your insurance bill.
Insurance Tips and FAQ
Insurance Tip #1
Workplace injuries do happen. Have you considered insurance to cover fines and penalties involved with an OHS incident?
Insurance Tip #2
Update business turnover. If your business has grown, your insurer needs to know. Under disclosing the size of your business will cause issues when / if you need to lodge a claim.
Insurance Tip #3
When considering sums insured, image if a fire burnt your entire business to the ground. How much would you need to fit out your workshop and purchase new tools, equipment, and stock.