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What insurance does a motor mechanic need?

So your motor mechanic business has just had an employee injury. Last month your hoist broke down. Not long before that somebody vandalised a customer’s car overnight while it was parked outside your workshop.
So what type of insurance does a motor mechanic need to cover the risks they face in their business?
 
What risks does a motor mechanic business face?
Like many small businesses, motor mechanics face many insurable risks to their business. Here are some broad categories that need to be considered when choosing insurance for your motor mechanic or auto shop business:
  • Risk to public - whether customers or suppliers
  • Risk to staff - from injury or death
  • Risk to stock and machinery - whether damaged, destroyed or stolen
  • Risk to property - whether leased or owned
Is your business able to cover the expense of significant damage to your workshop? How much does it cost to fix your specialised diagnostic or mechanical equipment if it breaks down?
Each of these unexpected events may pose a serious threat to your motor mechanic business and all are able to be covered by the right insurance coverage for motor mechanics.
 
What insurance does a motor mechanic need?
To cover these risks, any motor mechanic business needs to determine what insurance is right for them with the help of a specialist motor mechanic insurance broker.
Here are some insurance lines to ask your broker about:
  • Public liability insurance - to cover injury and property damage impacting members of the public in the garage and during road testing. Ask about driving risk extension to your public liability cover to make sure your customer’s vehicle is covered during test drives.
  • Workers Compensation Insurance - this addresses compensation claims for injury or death
  • Theft - this may cover theft of equipment, tools, cash or vehicles by forcible entry or contents kept at but outside your premises
  • Professional indemnity Insurance - do you offer advice? This might be a pre-purchase inspection or the issuing of a Safety certificate.
  • Commercial property Insurance - this covers loss or damage to buildings. If you are renting check if you are responsible for glass damage.
  • Mechanical equipment, stock and contents insurance - covering theft or damage for your tools, autoparts and equipment
  • Business interruption insurance - there are many unforeseen events that may lead your motor mechanic business needing to close its doors temporarily, this may include machinery breakdown, for which there is also insurance to cover the cost of repairs.
  • Income protection, TPD and Life insurance - protect your income if you can’t work for an extended period
  • Commercial vehicle cover - to cover your courtesy car, delivery van or mobile mechanic van
  • Cyber Insurance - covering customer data and privacy breaches

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

Purchase up to six products under one Business Insurance Package. 

  • Public liability insurance - to cover injury and property damage impacting members of the public in the garage and during road testing. Ask about driving risk extension to your public liability cover to make sure your customer’s vehicle is covered during test drives.
  • Workers Compensation Insurance - this addresses compensation claims for injury or death
  • Theft - this may cover theft of equipment, tools, cash or vehicles by forcible entry or contents kept at but outside your premises
  • Professional indemnity Insurance - do you offer advice? This might be a pre-purchase inspection or the issuing of a Safety certificate.
  • Commercial property Insurance - this covers loss or damage to buildings. If you are renting check if you are responsible for glass damage.
  • Mechanical equipment, stock and contents insurance - covering theft or damage for your tools, autoparts and equipment
  • Business interruption insurance - there are many unforeseen events that may lead your motor mechanic business needing to close its doors temporarily, this may include machinery breakdown, for which there is also insurance to cover the cost of repairs.
  • Income protection, TPD and Life insurance - protect your income if you can’t work for an extended period
  • Commercial vehicle cover - to cover your courtesy car, delivery van or mobile mechanic van
  • Cyber Insurance - covering customer data and privacy breaches
If you are running a motor mechanic workshop Urban Insurance can help to ensure that adequate motor mechanic insurance is in place to ensure your workshop is covered for all of its risks.
 
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Channelle Ricketts, Urban Insurance, AFSL 233750

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