Mechanics & Motor Trades Insurance

Motor Trades businesses face a variety of risks. However, you are in good hands! Coverscope specialises in the automotive industry.

Mechanics Insurance

In Australia’s mechanics and motor trades industry, businesses should consider several key insurance types due to the unique risks associated with this field. These insurance types help protect businesses, employees, and customers from various risks and liabilities. Here are the leading insurance types for this industry.

Public Liability Insurance

Why You Need It: Public liability insurance is crucial because it covers legal and compensation costs if a third party (such as a customer or passerby) is injured or their property is damaged due to your business activities.

Possible Risks: Risks include accidents on your premises, damage caused to customers’ vehicles, or injuries resulting from faulty repairs or maintenance work.

Product Liability Insurance

Why You Need It: Product liability insurance is vital if your business sells or manufactures automotive parts or products. It covers you in case a product you sell is defective and causes harm or damage.

Possible Risks: Risks include faulty or malfunctioning parts, which could lead to accidents, injuries, or vehicle damage.

Business Property Insurance

Why You Need It: This insurance protects your physical assets, including tools, equipment, and the building where your business operates, against damage or loss due to fire, theft, vandalism, or other covered perils.

Possible Risks: Risks include fire, natural disasters, theft, or damage to your property, which can disrupt your operations and result in financial losses.

Workers’ Compensation Insurance

Why You Need It: Workers’ compensation insurance is mandatory in Australia. It provides financial support to employees who suffer work-related injuries or illnesses. It also protects your business from potential lawsuits by injured employees.

Possible Risks: Risks include workplace accidents, injuries, and occupational illnesses that employees may sustain while working on vehicles or in your shop.

Professional Indemnity Insurance

Why You Need It: Professional indemnity insurance is essential if your business provides advice or professional services related to automotive repairs or modifications. It protects you from legal claims resulting from errors or omissions in your professional services.

Possible Risks: Risks include dissatisfaction with your services, faulty advice, or incomplete work that leads to financial losses or damages.

Business Interruption Insurance

Why You Need It: This insurance helps cover lost income and ongoing expenses if your business is forced to shut down temporarily due to an insured event (e.g., fire or flood).

Possible Risks: Risks include disasters or events that disrupt your business operations, causing financial hardship during downtime.

Commercial Vehicle Insurance

Why You Need It: If your business owns or operates vehicles for work purposes, such as towing or delivery, commercial vehicle insurance is essential. It covers damage to your cars and potential liability in case of accidents.

Possible Risks: Risks include accidents, theft, vandalism, and damage to your business-owned vehicles or vehicles under your care.

Plate Glass Insurance

Why You Need It: Plate glass insurance covers repairing or replacing broken windows or glass structures on your business premises. Large glass windows or partitions in a mechanic shop are standard and expensive to repair or replace.

Possible Risks: Risks include accidental breakage due to human error, vandalism, severe weather conditions, or other unexpected incidents that damage your plate glass.

Theft Insurance

Why You Need It: Theft insurance protects against losses from theft or burglary at your business premises. Theft insurance is essential given the valuable tools, equipment, and automotive parts often present in mechanic shops.

Possible Risks: Risks include break-ins, burglaries, or theft of valuable assets, which can disrupt your operations and lead to financial losses.

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It’s vital for businesses in the automotive industry, whether you’re a mechanic, auto electrician, mobile mechanic, or panel beater, to prioritise comprehensive insurance coverage. These professions often involve working with valuable vehicle equipment and providing services that come with unique risks. Insurance coverage can help protect your business, employees, and customers from potential financial losses and liabilities.

If you’re looking for insurance solutions tailored to your specific needs, contacting Coverscope can make the process easy. We can help assess your business’s risks and recommend the right combination of insurance policies to ensure adequate protection.

Personal Injury

If somebody is wrongfully injured by your actions or your product, public and products liability insurance can cover you for your liability to pay damages to the claimant.

Property Damage
If property is damaged due to your actions or your product, public and products liability insurance can cover you for your liability to pay damages to the claimant.
Advertising Injury

Liability arising out of advertising carried out by or on behalf of the insured.

What usually isn’t covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer.

Public & Products Liability Policies generally won’t include cover for:

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Cost of rectifying faulty workmanship

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Damage to your own product

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Claims by employees

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Claims arising out of the use of a registered motor vehicle

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Claims related to asbestos

Case Study

During a routine repair, one of Tyson’s employees accidentally damaged a customer’s vehicle, resulting in significant repair costs.

The dissatisfied customer filed a claim against Tyson’s business, seeking compensation for the damages. Without insurance coverage, Tyson would have faced a substantial financial burden, including legal fees and settlement costs.