Effective key handling is a critical part of motor trade risk management. Poor key security remains one of the most common causes of theft-related insurance claims, many of which are avoidable and, in some cases, declined due to noncompliance with policy warranties.
This guidance sets out best practice recommendations for the secure handling, storage, and management of vehicle keys, in line with insurer warranties and industry standards. It applies to all employees, contractors, and representatives involved in the handling of vehicle keys, including those for insured vehicles and customers’ vehicles.
All key handling practices must comply with the warranties declared within the client’s insurance policy. Although these warranties may vary between insurers, strict adherence is essential to maintain compliance and mitigate the risk of theft or loss.
Key Handling Recommendations and Advice
Staff must not permit or encourage customers to deposit keys through the letterbox when the business is closed. No unauthorised method of key drop-off should be agreed or implied.
Secure Storage of Keys During Business Hours
Keys should always remain protected from public view and access. Customer vehicle keys should be stored in a secure, designated location until collected by the customer. Keys must not be left on desks, counters, or alongside invoices pending vehicle collection, placed in shoeboxes, unsecured drawers, or any easily accessible area.
Compliance with Declared Warranties
If a client has declared the use of a key safe, or the intention to take keys home outside business hours, this declaration must be strictly upheld. Any deviation from declared warranties constitutes a policy breach and may invalidate insurance coverage.
Keyless Vehicle Security
It is advisable for all motor traders to promote the use of RFID blocking pouches for keyless entry vehicles, as these significantly reduce the risk of electronic relay theft. Effectiveness depends on consistent use of approved security products.
Key Security in Domestic Settings
Where keys are taken offsite, strong domestic security practices are essential. Clients should be reminded to keep keys out of sight, store keys away from doors and windows and use RFID blocking pouches for keyless vehicles.
Responsibilities
–Staff Responsibilities
It is recommended that staff ensure policyholders are aware of full compliance with the policy requirements. Always communicate the correct key handling procedures to customers.
–Management Responsibilities
Management must ensure staff are aware of key security requirements and provide appropriate secure storage solutions and update procedures as needed. Compliance needs to be monitored and address any identified risks or breaches.
–Non Compliance
Failure to comply with this policy may result in disciplinary action and may expose the organisation and the client to avoidable insurance risks, including potential denial of claims.
Need Advice on Key Security or Policy Warranties?
Jensten Motor Trade works with specialist insurers who understand the operational risks faced by motor traders. If you’re unsure whether your current key handling procedures align with your policy warranties, our team can help.
Speak to a Jensten Motor Trade specialist on 0208 298 2100 or request a quote.