What type of cover is provided on a Vehicle Conversion specialists policy?
One of the main key areas of any insurance policy is Liability insurance and a vehicle conversion specialist is no different in their requirements.
Public Liability protects you against allegations of negligence from a third party, as an example, your customer comes to your premises and falls over a pallet, the cover provided with not only pay the legal and defence costs but any compensation payments that may be awarded against the business up to the indemnity limit.
Converting vehicles may mean that you manufacture your own products that may not be available off the shelf, this means that Product Liability Insurance is required. Product Liability works very similar to public liability but is where your product causes, loss, damage, or injury to a third party.
There are many other covers available, defective workmanship insurance, merchantable quality, financial loss, covers to protect your business.
What amount of Liability cover do I need
Liability insurance provides cover up to an indemnity limit, this is the maximum an insurer will pay in the event of a loss and includes any legal or compensation costs awarded against your business.
Indemnity limits vary, there can be minimum requirements or the nice to have. Whilst many policies provide a standard cover of £2million or £5million, higher limits are available, £10million as an example. Its always a good idea to consider what the potential exposure might be rather than just accepting the policy limit, we can discuss this with you.
Is Public Liability or Products Liability Insurance compulsory for vehicle conversion specialists?
Put simply, no but any business without it would be exposing themselves to potential financial ruin should they be without it.
Does a business need to have Employers Liability Insurance
In almost all circumstances, yes, Employers Liability insurance is a legal requirement where you have people carrying out work for you under your instruction, these are likely to be directly employed or could be self-employed or even voluntary.
What property insurance is available for a Vehicle Conversion specialist?
Liability and cover for vehicles when used on the road are just part of the specialist nature of your insurance requirements.
Having business premises means the building you work from needs insurance if you own it or if it is a requirement that you insure it under your lease.
Making sure you have sufficient cover in place is a large part of how your business insurance works and responds in the event of a claim, whether that cover is correct though is a different matter. Are the buildings that you work from owned, when was the last time you checked the rebuild cost was adequate? If you are a tenant, have you spent money on the buildings that aren’t yours, what would happen in the event of a claim, who would pay for the improvements that you have done?
Plant & Machinery can be a huge cost, ramps, particularly those designed to take much heavier vehicles, hand tools without them can make life difficult.
Vehicle conversion specialists can have very high vehicle values, maybe into the hundreds of thousands of pounds, who owns them, you, your customer, a dealer, these need to be fully understood to ensure that the cover provided flows correctly.
Can you stay in business even if you are not operational?
Business insurance policies have the option to include business interruption insurance, this cover intends to keep your business in business should you suffer a material loss at your premises, sometimes a large loss can mean that a business doesn’t restart.
Covering your overheads and essential outgoings, business interruption is designed to put you back in the position directly before the loss occurred. This can be many months or years so the period chosen must reflect the length of time (indemnity period) to get your business back on its feet.
An indemnity limit has a minimum is 12 months, we recommend a minimum of 24 months or 36 months. For a vehicle conversion business, this would be based on your Gross Profit.
It’s essential that this cover is correct, speak to us about this cover for your business, whilst we can’t tell you the amount to insure for we can assist you in arriving at the figure.
What type of business would a Vehicle Conversion Specialists insurance policy suit?
Whether you are specific to one type of vehicle conversion or you cover a wider market such as beavertails for vehicle or plant transport, curtain sided vehicles or trailers, truck bodies, refrigerated vehicles or specialist bespoke conversions or indeed those ice cream vans.
The domestic end of the market, motor home conversion insurance or camper van insurance is essential, not just modifications to the body to add additional windows but fully litting out including gas appliances.
Can my business be protected with other types of insurance cover?
Goods in Transit – getting goods or vehicles from one place to the next requires cover, a business in the automotive sector could be carrying parts so protecting them whilst in transit against theft or damage is a must.
Commercial Legal Expenses Insurance – sometimes an insurance policy includes this useful cover, it this provides a wide spectrum of cover such as Property Disputes, Employment Disputes, HMRC disputes cover, Contract Disputes.
These policies can provide a lot of useful covers, free business templates, and documents as well as legal and employment helplines.
Directors & Officers Liability Insurance – A limited company has limited liabilities a director of a company has unlimited liability. A management Risks insurance policy including Directors & Officers Liability cover can protect the director’s personal assets in the event of a claim against them.
Employment Practices – Provides legal defence in the event of an action taken by an employee of the company, an option under a Management Risks policy.
Cyber Insurance Cover – It’s estimated that 60% of businesses have succumbed to some sort of cyber-attack each year and that number is mounting, Many different policies are available providing a wide range of protections.
Engineering Inspection – An optional service we can arrange, the statutory inspections on lifted, pressure equipment, as well as extraction plant such as spray booths. It’s a legal requirement to have inspections to ensure they are not dangerous. We can include this service with your insurer or with one of the many companies that we deal with.