22 December 2020

Small Garage Insurance – why you should consider cover no matter the size

By Road Runner
mechanic working on an engine in a garage

As a motor trader operating from a smaller premise, you may still be exposed to similar risks as the larger garages.

Garages of any size carry risks, whether that is liability as the owner, employer or to the physical premises.

Road Runner Motor Trade Insurance offer road risks, liability and premises cover for those looking for full insurance cover for their trading.

What are the main issues facing traders with a small garage?

While operating from a garage premises, motor traders could face a range of issues. Two of the most likely are insufficient buildings cover and an inadequate business interruption cover.

Take the below as an example:

A motor trader had a fire at their premises and lost everything. When they took out their insurance, they had decided that they could recover from a serious fire within 12 months and had taken out business interruption insurance to cover them for loss of income only for that period.

Unfortunately, the buildings sum insured was inadequate meaning that they had to fund part of the rebuild themselves. Also, because of the extent of the damage and their location, they had to reapply for planning permission. With site clearance, permissions, arranging of builders and construction, and purchase replacement tools taking into account, the estimate was 12 months was exceeded, resulting in reduced income.

How can you avoid the above happening to you?
  • Use a qualified motor trade insurance broker
  • Adjust your policy when you make changes, such as opening a new garage, hiring new staff members or buying a large amount of new stock
  • Do not underestimate the value of your assets stored at your garage

If you answer ‘yes’ to any of the below, you should consider looking at your small garage insurance requirements.

  • You have not reviewed your sums insured for a couple of years
  • You have made alterations/additions to your workshop, garage or storage unit(s)
  • You have purchased extra tools/equipment
  • You have more customer’s vehicles in your care than when you took out cover
  • Your buildings insurance is based on market value instead of rebuild cost
  • You have not taken out any business interruption cover

Road Runner can help you with your small garage insurance cover. Speak to us today on 03301 00 87 20 or request a call back.

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