Mechanic and Car Repair Garage Insurance

As a mechanic or car repair garage, your customers rely on you to return their vehicles to top working order, trusting you to carry out servicing and repairs when something goes wrong. You have to ensure vehicles are roadworthy and therefore carry a weight of responsibility on your shoulders. Garage insurance and mechanic insurance are designed to keep individuals working in the motor trade safe from costly claims should any incidents relating to your business occur.

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An intricate and skilled job, you need to be able to focus on the task at hand when you’re servicing, conducting MOTs, or carrying out repairs. Rather than worrying about potential compensation claims, once you have a comprehensive insurance policy in place, you can concentrate on what you do best – keeping vehicles safe!


What is Garage Insurance?

Garage liability insurance is a collection of covers designed to protect those running a car repair garage. These covers address a range of risks associated with a brick-and-mortar garage, including accidents involving members of the public, protection for your staff and the equipment and tools they use, cover for driving your customer’s vehicle, for faulty work, and you can also protect the premises themselves.


What is Mechanic Insurance?

Mechanic Insurance contains a similar set of covers and is usually designed to protect individual mechanics. Even if you’re employed full-time by a car repair garage with its own insurance, you may also prefer to take out your own mechanic insurance policy to feel confident that you have the level of coverage you’re comfortable with. It also means you don’t need to worry about being left with a large financial burden should your employer’s insurance lapse or be deemed invalid.

If you’re a mobile motor mechanic, your insurance can be tailored to consider the different locations you work in and the high-value equipment you’ll need to transport.

What Cover is Included in Mechanic and Car Repair Garage Insurance?

A car repair garage can be dangerous, so you need cover that reflects this. To protect members of the public, your mechanics, and other staff members, the following coverage is usually included in mechanic insurance and car garage insurance:

  • Garage Public Liability insurance – this protects you against claims made by members of the public for injury or property damage attributable to your business. For example, if a customer trips on a cable in the garage and hurts themselves, they could enter a costly claim for personal injury. This cover will deal with the cost of defending the claim and any compensation you’re deemed liable to pay.
  • Employers’ Liability – in the UK, there is a legal minimum of £5 million employees’ liability cover if you employ staff. Should a staff member claim they were injured or made sick while working for you, this cover is called upon.
  • Defective Workmanship cover – used if a customer or member of the public is injured or their property damaged due to faulty work performed on a vehicle. It will also cover the costs of correcting any poor workmanship on a vehicle.

Another important element of car garage insurance is protecting the property associated with the business, from your customer’s vehicles to the tools of the trade and the premises themselves. For this reason, you may wish to include the following covers:

  • Road risks – this type of cover pertains to your need to drive customers’ vehicles while in your care. As with standard car insurance, you can choose between third party, third party, fire and theft, and fully comprehensive. This will cover any incidents that might occur when you test drive customers’ vehicles during the servicing and repair process.
  • Product liability and service indemnity – which you can use if a product you use turns out to be faulty or if you fit a part incorrectly.
  • Tools and machinery cover – to help cover the cost of repairing or replacing these vital items if they’re damaged or stolen. Please note that you may need to take out a separate cover for the more expensive kit, such as diagnostic equipment.
  • Engineering inspection – a standalone cover that allows an independent engineer to assess your equipment, allowing your garage to function in line with the Health and Safety at Work Legislation.
  • Combined motor trade cover – which can cover the costs of rebuilding your premises in the event of a total loss under a form of business premise cover.

Finally, turning to the general finances of your business, the following covers could come in handy:

  • Business interruption – serving as a financial cushion should your garage suddenly have to close due to circumstances out of your control, such as storm damage or a fire.
  • MOT loss of license – should your garage lose its license to perform MOTs, this cover will offer financial protection.

Do Self-Employed Mechanics Need Any Additional Cover?

Mechanic insurance can be tweaked to address risks associated with a mobile service. For example, you might like to include breakdown cover. Being off the road could quickly impact your earnings if you rely on a vehicle to get to your customer’s location to perform repairs.

You may also like to take out personal accident cover to support you should an injury render you unable to work for a long period.


What Affects the Cost of Garage Insurance?

When it comes to calculating your premium for car repair centre insurance, the following factors play a key role:

  • The location of your premises and your level of security.
  • The nature of work you perform and the type of vehicles you work on.
  • The number of staff and their relevant qualifications.
  • The number of staff on your roads risks policy (and their age and experience will also be considered).
  • Your relevant licenses.

Contact Park Insurance today to see how our bespoke approach to insurance could secure you the most comprehensive and budget-friendly policy for your car repair garage or mechanic business. We’ve been helping the UK’s business owners stay safe for over 30 years, so talk to one of our helpful insurance experts to learn how you could benefit.

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Park Insurance Services Ltd
323 Church Road
St George
Bristol
BS5 8AA

Tel: 0117 955 6835

Email: info@parkinsurance.co.uk

Park Insurance Services Limited is authorised and regulated by the Financial Conduct Authority under FRN 998383. You may check this on the Financial Services Register by visiting the FCA website. Park Insurance Services Limited is registered in England and Wales (company number 13091532). Registered address: 323 Church Road, St. George, Bristol, England, BS5 8AA.