Running a motor mechanic workshop involves a lot of risk, from the complex machinery, to the valuable vehicles you work on, to the staff you depend on, all of these present opportunities for risk to the business.
So what are the top 5 risks for motor mechanics and how can you be insured against them?
What risks do I need to cover as a motor mechanic?
There are 5 top categories of risk to consider for motor mechanics insurance:
- Risk to public – this could be to customers and suppliers on your premises through slips and trips on greasy workshop floors, or off premises during a car accident on a test drive, or faulty workmanship resulting in injury to a customer.
- Risk to staff – motor mechanics risk injury from heavy lifting or crush or laceration injuries while using tools and equipment. Mechanics may also inhale dust or suffer chemical exposure. These risks may result in compensation claims.
- Risk to stock – including lubricants, oils and auto parts which may be damaged, destroyed or stolen.
- Risk to machinery – what about your specialised equipment? Perhaps your hoist breaks down. The costs of repair can be very high.
- Risk to property and contents – from theft, vandalism, fire or flood. It is important to consider both the property owned or leased by the business as well as customer’s cars left on the property overnight and the tools you rely on.
Beyond these top 5 risks, one risk that is increasingly relevant as motor mechanics businesses transition to online business systems is cyber risk. This includes the possibility of customer credit card details ending up in the hands of cyber criminals.
Each of these risks may pose a serious threat to your motor mechanic business, whether that be an inability to cover costs, or whether your business needs to temporarily close as a result of an incident.
What about risks to Mobile Mechanics or Heavy Vehicle Mechanics?
Mobile mechanics and mechanics working on buses or commercial vehicles over 2 tonne carrying capacity have their own set of risks to consider. Mobile mechanics may be at higher risk of theft of tools or at greater risk of business interruption if their van breaks down.
An insurance broker with mobile mechanic or heavy commercial vehicle experience is best placed to cover these risks.
What insurance does a motor mechanic need?
The good news is that each of the risks described above is able to be covered by the right insurance coverage. An insurance broker who understands motor mechanics insurance is your best bet.
Here are some insurance lines to ask your broker about:
- Public liability insurance – Ask about driving risk extension for your test drives
- Workers Compensation Insurance
- Professional indemnity Insurance
- Commercial property Insurance – If you are renting check what insurances you are responsible for
- Mechanical equipment, stock and Contents insurance
- Business interruption insurance
- Machinery breakdown insurance
- Income protection insurance and TPD insurance
- Business Car insurance
- Cyber Insurance
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.