Business insurance for Mechanics

Who are InSync?

Insync Insurance* are an insurance broker we work in partnership with who are there to help those customers who might need protection that AXA doesn’t currently offer. They work with a range of different insurers to get you the cover you need to make sure your mechanic business is safe and secure. So, you can rest assured your business is in good hands.

Why do mechanics need business insurance?

Whether you’re working as a mobile mechanic or you have your own garage, you’re still spending every day working on other people’s cars. With that work comes the responsibility to be properly insured in case something goes wrong.

One of the main risks that mechanics face is from driving a variety of different cars. Most people are only allowed to drive their own car (with insurance) and any cars for they’re a named driver for.

But as a mechanic you’re allowed to drive your customers’ cars to test drive them, ensure repairs are satisfactory and offer test drives if you also sell cars. For this, you need something called Road Risk Insurance.

What would happen if an employee of yours drops a tool on, or near, a customer’s car and it scratches the paintwork? What if someone breaks into your garage and damages your machinery? Or if you crash a customer’s car while taking it on a drive to test the repairs?

In cases like these, your business insurance cover will help handle any compensation claims from customers, deal with legal costs, and replace or repair any tools and machinery affected.

Don’t take the chance – make sure you have the correct business insurance to help handle any claims.

What are some common claims mechanics face?

Here are some of the common types of claims that a mechanic might face and/or deal with.

• Damage to a car in your care - Driving other people’s cars is an important part of your job and with that comes the obvious risks of being on the road, such as collisions.

• Further damage causes by improper repairs – Sometimes the repair you carry out doesn’t fix the issue at hand and inadvertently ends up causing further issues for the car and your customer.

• Damage to tools/equipment – As you work with tools and specialise equipment daily then it’s likely over time you may experience cases where these tools get accidentally damaged during the course of your work.

In all these cases business insurance would be able to help with the paying the cost of compensation claims made by third parties, legal costs, repairs, and replacements etc.

What types of business insurance might a mechanic need?

There are several types of business insurance to consider as a mechanic.

Road risk insurance is designed to cover you for all scenarios where you are driving your customer’s car. This is a necessary part of any mechanics’ job since you’ll be responsible for test driving the cars once you finish repairs to ensure they’re up to standard. You may also need to bring cars to or from a customers’ location, or to give test drives if you sell cars, too. With this cover, you’re protected against any crashes or collisions that might happen on the road.

A courtesy car extension may be something you need if your garage offers courtesy cars to customers who are required to leave their car with you for an extended period of time. This way if anything goes wrong with the car you provide, you’re covered.

Service indemnity protects you if any repairs you’ve carried out aren’t up to scratch, or if you fix something on the car and it breaks again. IF this happens and your client makes a claim, or you need to take the car in for repair a second time, you’re covered.

Public liability insurance is important for mechanics since most of your day is carrying out work on other people’s property. Public liability covers you for many instances that involve third parties, most importantly accidental injury to a customer, or further accidental damage to their car.

Tools insurance is another cover to consider, particularly if you rely on a lot of machinery to complete the day to day repairs your garage handles. Whether these are your own tools, or larger pieces you may have hired, make sure you’re protected if they should break down or get damaged.

Employers’ Liability Insurance is required by law if you own a garage and have staff working for your – whether that’s other mechanics, receptionists, trainees etc. This protects both you and your employees should they get injured or fall ill as a result of working for you.

How much does business insurance for mechanics cost?

How much your policy costs will depend on:

• The size of your business
• How many (if any) employees you have
• Claims history
• What covers you need
• The level of cover you choose
• Any additional covers you add to the policy (e.g., tools, legal expenses, business equipment etc)

To find out what cover might cost you, it’s best to get a quote. That way you can provide information specific to your business and see exactly what you will to pay based on your circumstances.

*Insync Insurance is a trading name of Insync Insurance Solutions Ltd which is authorised & regulated by the Financial Conduct Authority (Firm Reference Number: 766691). Registered in England and Wales 0880662. Registered Office 7th Floor Mark Lane, London EC3R 7NE. AXA Insurance UK plc acts as introducer to Insync Insurance Solutions Ltd.