Is your business fully insured for all eventualities? Failure to obtain a sufficient level of the correct cover can spell disaster for independent garage operators. Plan Insurance explains more.
For garage owners and mechanics, working life is always busy, and amidst the daily round of looking after customers and their vehicles, it is easy to ignore ‘peripheral’ aspects such as insurance, which can slip down the priority list.
Of course insurance is something that everyone hopes will never have to be called upon, but if the necessity does arise, having sufficient cover for your garage operation can truly make the difference in whether you are able to remain in business… or not.
No-one can foretell the future and all sorts of unexpected hazards and incidents can occur, many of which you might never have considered. The following topics all illustrate the need for appropriate insurance cover:
1.Health and safety – Prevent tragedy and avoid possible prosecution; liability cover protects you and your business against worst case and avoidable instances. Recently, a garage in Lancashire was fined £120,000 after an apprentice accidentally ran over a colleague, very seriously injuring him. Employers’ Liability cover is a legal requirement and in such circumstances proves crucial.
2. Smashing – Crash statistics relating to drivers distracted at the wheel are frightening, and research by Direct Line recently revealed that more than 47,000 accidents each year are caused by drivers failing to look properly. Appropriate driver training can help preserve your No Claim Bonus (losing it could add 60% to insurance premiums) and reduce claims. It’s also worth reminding drivers on your motor trade policy how important it is to pay full attention at the wheel.
3. Electric cars and vans – The number of fully electric and hybrid electric vehicles on the road is growing fast. With the necessarily high voltages (typically 360 to 400V DC) involved, there are many risks for the unwary, such as fire risks as well as many other potential injuries to technicians working on these vehicles.
The Institute of the Motor Industry (IMI) feels that new regulations are required to ensure that technicians are properly trained to work on electric vehicles (currently around 45,000 on the road, with just 1,000 or so technicians trained to maintain and fix them).
Employee and public liability cover, as well as contents, tools, plant, stock, vehicles and buildings cover, is required to protect you and your business.
4. Business interruption – Unforeseen occurrences can prevent a garage from operating for a long time, with the potential to ruin a business. Such events include disasters like fire damage, flooding or other weather-related incidents. For peace of mind, it is imperative that you consider taking out Business Interruption insurance cover to help your firm survive, should the worst happen.
5. Correct calibration – For today’s Advanced Driver Assistance Systems (for example, autonomous emergency braking and lane departure warning), the correct calibration of cameras/sensors is essential for the vehicle’s computer system, so that the vehicle has access to accurate information. Otherwise the safety features cannot operate as designed.
If a customer should be involved in an accident attributed to such a failure (or indeed other incidents concerning questions over quality of work), this could have grave consequences for your business. Adequate liability insurance to cover defective workmanship is essential protection.
6. Theft – The 2016 Crime Survey for England and Wales showed that car theft had risen by 8% – the first increase for 20 years, with more than 80,000 vehicles being stolen in one year. Are prevention measures in your business good enough? Do you have a secure key box to prevent vehicles being stolen following a break-in at your premises?
