What Is Car Garage Insurance And What Does It Cover?
These type of policies are created with all of the elements you would need for protecting your MOT garage or service centre. As you will have a specific premises that you run your garage from, you will most likely need a motor trade combined policy. As with other types of motor trade insurance, you can decide what level of cover best suits your business from third party only, third party, fire & theft, and finally comprehensive.
It is highly likely that you will have employees in your business, whether they be mechanics, apprentices or bookkeepers, and so by law you will be required to have Employers’ Liability Insurance in place. You can also add things like Public Liability insurance, Product Liability insurance, Tool and Machinery cover, Business Interruption cover, Buildings and Contents cover plus much more.
Car Garage Insurance Explained
There are various levels of cover available on an MOT Garage or Vehicle Service Centre insurance policy, and when deciding which level you should choose, you should consider what kind of impact an incident could have on your business.
Third Party Only will cover third party vehicles for damage or loss – this includes customer vehicles that you are working on, and also vehicles belonging to members of the public that you could come into contact with when test driving client vehicles for diagnosis; Third Party, Fire & Theft will cover the third party property (as above) but will also give you protection for your own vehicles such as recovery trucks, vans or courtesy cars your business has against fire and theft damage; Comprehensive cover will also protect your own vehicles against any other damage caused to them.
As a garage owner operating your business from a fixed premises, it would be a good idea to look at a Motor Trade Combined policy. This can give you all of the protection of a Road Risk policy (detailed above) but also gives you cover for your place of business, and includes buildings and contents cover. If something happens to your premises, at least you know you would be covered and able to continue trading.
No doubt your business relies on a lot of tools and machinery to successfully undertake daily activities. If this is the case then it would be recommended that you take out cover for these too. That way you can rest assured that the things you heavily rely on will not be the things that let you down. You can also add business interruption cover. This covers your earnings if something were to happen that causes you to temporarily close your business.
The chances are that you probably employ other people, and if this is the case, regardless whether they are an MOT tester, a mechanic or even a cleaner, by law you are required to take out Employers’ Liability insurance. This will protect you in the unfortunate circumstances that an employee becomes ill, injured or even suffers death as a result of your business activities. Similarly you could include Public Liability insurance which is practically identical other than it protects you against claims made by members of the public.
Although not a legal requirement, if you have members of the public on and around your property, it should be something that is considered very carefully as even a slight injury could result in a hefty claim being lodged against you. Product Liability is also a good additional extra as this covers the actual work you do to a client’s vehicle, and any parts you fit to them, against claims for damage caused by faulty or defective parts.
So what are the different types of cover available?
- Third Party Cover
- Third Party, Fire & Theft Cover
- Comprehensive Cover
- Road Risk Cover
- Motor Trade Combined
- Product Indemnity Cover
- Employers’ Liability
- Public Liability
- Buildings & Contents
- Business Interruption
- Tool & Machinery Cover
How To Get A Quote?
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