Service and Repair Garage Insurance

What is service and repair garage insurance?

What can garage business insurance cover?

While every vehicle repair garage is different, there are some common risks – such as road risks insurance, public liability insurance, and premises insurance – that you’ll want to include.  At Jensten Motor Trade, our trader policies are suitable for those operating in the service and repair sector of the motor trade.  It allows you to choose from a range of policy elements, including:

• Road risks insurance – so you can drive customers’ vehicles and any you own in connection with your business and social domestic and pleasure on public roads. As with car insurance, you can choose from third-party, third-party fire and theft, or comprehensive cover
• Public liability insurance – if a member of the public is injured or their property damaged while on your premises, you can be held liable. Public liability insurance will protect you financially should you be sued for damages
• Employers’ liability insurance (EL insurance) – is a legal requirement if you have any staff, full-time, part-time or contracted. EL insurance protects motor traders from compensation claims from their employees should a claim be made against them for loss or injury at work.  Your policy must have a minimum of £5m cover, with £10m being the industry standard
• Business premises cover – if you’re trading from premises, you’ll want to have them protected. If your premises were damaged or destroyed, business premises insurance would cover the cost of repairs or a rebuild
• Tools and machinery cover – without your tools and machinery, you can’t operate. With tool thefts on the rise in the UK*, you’d be wise to insure them.  This covers tools and expensive pieces of machinery, such as diagnostic equipment.  It can also provide Mac and Snap-On tools insurance, plus employees’ tools and toolbox options
• Sales and service indemnity – protects you against claims of damage or injury after selling or repairing a vehicle. It can include cover for faulty parts or repair work that’s contributed to the problem
• Money and keys – if money or keys are stolen from your premises, this is designed to cover the cost of their replacement. Most policies will stipulate that money needs to be left in a safe, locked cashbox, or a cabinet
• Business interruption insurance – should disaster strike – a fire, a flood, or an explosion – and you can’t trade, business interruption insurance will provide an income until you can get to your previous trading level
• Engineering inspection service – if, as part of your trading, you use testing equipment or machinery, an engineering inspection service element to your policy will cover the cost of a safety assessment of it. Having your equipment assessed is a legal requirement as it’s part of 1998’s Lifting Operations and Lifting Equipment Regulations (LOLER) and Provision and Use of Work Equipment Regulations 1998 (PUWER).  It can help satisfy your health and safety at work requirements, and it also means you’re less likely to have downtime owing to essential equipment such as vehicle lifting tables, jacks, and pressure systems failing
• Business contents – including your stock in trade, computers, phones, and other business equipment
• Products liability insurance – should a product you use or recommend cause damage or harm, you can be liable for compensation
• Loss of MOT of licence cover – if you offer MOTs, this is a vital cover to protect your business in the event that your license is lost