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Service and Repair Garage Insurance – Essential For Your Business
Repairing and servicing motor vehicles, from oil changes to engine replacements, is a crucial part of the motor vehicles trade industry. Accidents, blunders, and unanticipated setbacks are all potential outcomes of doing business in this sector, making it a high-risk business.
Businesses in the vehicle trade industry frequently use service and repair garage insurance to prepare for the unexpected. It is important for firms that specialize in car maintenance and repair to have a car repair cover.
What Is Service And Repair Garage Insurance?
Garages that perform services and repairs on motor vehicles require a special kind of insurance known as service and repair garage insurance or motor trade insurance for service and repair garages. It is crucial for vehicle maintenance shops, garages, and MOT (Ministry of Transport) testing centres that maintain, inspect, and repair customers’ vehicles.
The term “traders’ combined insurance” refers to the fact that this policy provides multiple forms of protection in a single bundle. Key features that are often covered by service and repair insurance are as follows:
- Equipment and tools
- Driving customer vehicles
- Business premises
- Public and employers’ liability
Having service and repair garage insurance is not only mandatory in many jurisdictions, but also crucial for safeguarding your company against monetary losses as a result of unanticipated incidents. Inadequate insurance protection could result in the closure of a garage in the event of an accident, theft, or lawsuit.
As a garage owner who repairs and provides services to vehicles, you face several hazards and potential lawsuits as a result of your line of work, and service and repair garage insurance is there to protect you. Typically, it covers the following:
- Road Risks Coverage: This protects you and your workers when they use their personal vehicles or customer cars for garage operations. Depending on your needs, you can select either third-party-only, third-party-fire-and-theft, or comprehensive coverage.
- Employers’ Liability Insurance: It protects your business from lawsuits filed by employees who have sustained injuries or illnesses while on the job.
- Public Liability Insurance: Public liability insurance protects you in case a member of the public gets hurt or their property gets damaged as a result of your business activities.
- Business Premises Insurance: Pays for repairs or rebuilding if your company’s physical location is damaged by things like fire, vandalism, or natural catastrophes.
- Tools and Equipment Insurance: Protects against the financial burden of fixing or replacing garage-related tools and machinery in the event of their destruction, loss, or theft.
- Diagnostic Equipment Cover: Coverage for the high-priced electronic tools used for diagnosing problems across a wide range of vehicle models and makes.
- Money and Keys Cover: Theft of cash and keys to a vehicle kept on the premises are covered by this policy.
- Service Indemnity insurance: Claims resulting from the improper or wrong installation of components are covered by the service indemnity insurance.
- Demonstration Cover: Coverage for car demonstrations allows members of the public to test-drive vehicles, which can lead to occasional vehicle sales.
- Business Interruption Insurance: Coverage for monetary losses incurred due to the temporary shutdown of operations as a result of covered perils such as fire, flood, or other covered perils is provided by business interruption insurance.
- MOT Loss of Licence Cover: Protection for MOT stations in the event they lose their ability to conduct MOT tests is provided by MOT Loss of Licence Cover.
- Engineering Inspection Policy: The Engineering Inspection Policy is a stand-alone document that mandates routine checks of all machinery and tools to verify they are in good working order and do not pose any health and safety risks.
How Much Does The Insurance Cost?
The price of service and repair garage insurance can fluctuate substantially in response to several variables. The cost of service and repair garage insurance can be affected by several variables, including:
- Location: The insurance rates are not uniform across the country. Insurance premiums may be more expensive in urban regions due to factors such as increased traffic and crime.
- Garage size: Larger garages with more staff and expensive equipment may pay more for insurance.
- Type Of Coverage: The cost of insurance may vary depending on the specific type of garage and the services it offers, such as car maintenance, towing, and parking.
- Coverage Limits: Higher insurance prices are a direct result of increased coverage limits.
- Claims History: The cost of insurance for your garage may go up if you have a record of claims in the past.
- Deductible: The deductible you set can affect both your monthly premium and your out-of-pocket costs in the event of an insurance claim.
- Business Experience: A garage’s duration in business and your expertise in the field might also be important factors.
- Additional Coverage: Coverage for employees, business interruption, and equipment breakdown are all examples of additional coverages that can drive up premiums.
How To Cut Costs On Premiums?
The following procedures can help you to minimize your insurance premiums and protect yourself against potential losses:
- Avoid having too many people covered: You may be able to save money on your road risk insurance by reducing the number of employees that are covered under the policy.
- Hire skilled motorists with clean driving records: When calculating premiums, insurance companies often look at each individual’s driving history. Hiring experienced drivers with spotless driving histories may help you save money on insurance premiums due to the reduced accident risk they display.
- No-claims bonus: Getting a no-claims bonus in the same way that drivers can with private car insurance by being claim-free for multiple years. The longer you don’t file any claims, the lower your premiums will be.
- Limit your services on expensive vehicles: Avoid repairing or servicing high-value cars if at all possible, as doing so raises the insurance company’s risk exposure. It is possible to lower insurance premiums by restricting the scope of the repair to involve only cheaper motor vehicles.
- Limit motor trade activities you offer: Reduce the number of additional motor trade activities you participate in, such as roadside recovery or selling vehicles. Insurance premiums might be lowered by cutting back on or eliminating these extra activities.
- Security Measures: You may reduce the likelihood of theft or vandalism by installing security locks, alarms, perimeter fences, and CCTV surveillance, all of which can save you money on your insurance premiums.
Frequently Asked Questions
Why Would A Car Dealership Need Service And Repair Insurance?
Car service centres, garages, repair shops, and mechanics are all examples of businesses in the motor vehicle sector that could benefit from service and repair insurance. As a result, the company is safeguarded against the legal and financial consequences of any mishaps that may occur during maintenance and repair.
Does Service And Repair Garage Insurance Have Any Restrictions Or Limitations?
Service and repair garage insurance may have the same limitations and exclusions as other types of insurance. Intentional behaviours, pre-existing conditions, and potentially dangerous activities could all be grounds for cancellation.
There may also be limitations on compensation for certain claims under particular plans. It is essential to read the policy’s terms and conditions thoroughly to know what is and is not covered.
Can A Company Get Service And Repair Garage Insurance Tailored To Its Needs?
Many insurance companies do offer service and repair garage insurance coverage that can be tailored to the needs of a car dealership. Insurance agents and brokers can help business owners customize policies to fit their specific needs and exposures.
Is It Required By Law For Garages To Carry Service And Repair Insurance?
In the vehicle trade, insurance standards may differ from one country to the next. Employer’s liability insurance, for example, is often required by law if a company has employees. While some forms of business insurance are mandated by law, others are strongly suggested to safeguard company assets.