Is there anything else the policy wouldn’t cover
Yes. Like all insurance policies, there will be some form of excess, this is usually referred to as a third-party property damage excess, this amount will be detailed in your insurance policy.
Whilst a defective workmanship policy will cover exactly that, as standard it won’t cover other things like rectification although this can sometimes be bought into the policy depending on your insurer.
Damage to vehicles being worked upon
Sometimes an insurer may not specifically state that the policy covers the damage whilst work is being carried out on the vehicle. Insurers have different terminology, defective workmanship cover can also be referred to as damage to vehicles being worked upon.
How much cover should I have?
With Liability insurance policies you can choose your limit of indemnity, the limit of indemnity means the maximum amount your insurer would pay in the event of a claim, as an example for loss, damage, or injury to a third party such as a member of the public. Whilst usually, £1m would be the minimum there are options such as £2m and £5m. It would be wise to take the highest limit that you can afford but speak to a motor trade broker for the best advice, or give us a call – 0330 058 0260
What other types of scenarios might there be?
The scenarios are endless, but let’s look at a few others.
Whilst working on vehicle wiring connecting a new console you accidentally cause a fire which damages the dashboard, what would be covered is the resultant damage only, that would be the dashboard, any associated wiring but not the console that you had fitted.
The vehicle was with you to have a new wing, suspension, and brakes to the front of the car. All were fitted and taken away by the customer, on the way home the customer has alleged that the vehicle wouldn’t stop not only causing damage to the vehicle again but also loss and injury to a member of the public. In this case, the brakes have failed due to your negligence when rebuilding the vehicle.
The vehicle is with you for a service, the apprentice is asked to change the oil, whilst doing so it’s not noticed that he/she has filled the engine with oil and not just to the recommended amount. The result is a destroyed engine costing tens of thousands of pounds.
What happens if it was the part that was defective and not the workmanship?
This of course does happen where the part itself has been fitted correctly but fails due to faulty manufacture. When this happens it can set off a chain reaction, it’s been confirmed it was not the fitting, but the part, where did the part originate, the motor factor, the importer, the manufacturer, wherever you obtained the part from will usually be the first port of call for the insurer where possible to pass on any blame to them.