Mechanics Insurance
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Mechanics insurance
Mechanic insurance NZ
Mechanic insurance is a specialized type of business insurance designed specifically for those in the automobile repair industry. It safeguards against various risks associated with repairing and servicing vehicles. These can include risks such as damages to a customer's vehicle, employee injuries, theft of tools, and even potential legal claims.
Why is mechanics insurance important?
In the world of car repairs and servicing, things don’t always go as planned. Whether it’s an accidental mishap, a worker’s injury, or legal issues, mechanic insurance acts as a financial safety net. Having insurance ensures that, in case of unforeseen situations, the business remains secure, employees are protected, and customers maintain their trust in the services provided. In essence, mechanic insurance acts as a protective shield for both the business and its reputation.
In New Zealand, the average cost of mechanics insurance typically ranges between $100 – $200 per month.
It’s crucial to have mechanics coverage if your business:
- Handles customer vehicles daily
- Uses specialized equipment and tools
- Employs multiple mechanics or technicians
- Operates in a rented facility
What covers are typically included in mechanics insurance?
Public Liability
This policy covers common mechanics business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.
Best For
- Business Accident Coverage
- Third-party Damages
- Legal Cost Protection
Statutory Liability
This cover is a type of protection that helps mechanic businesses cover costs if they accidentally break certain laws or regulations.
Best For
- Unintentional breaches protection
- Legal costs
- Fines and penalties
Business Vehicle Insurance
Protects vehicles used for work purposes. It covers accidents, damages, and injuries related to the vehicle while it’s being used for business and personal activities. It can also cover courtesy cars.
Best For
- Repair costs
- Third party damages
- Injuries
Tool Insurance
Safeguards your mechanics tools against unexpected events, like burglary or accidental damage, ensuring you won’t have to bear the financial burden of replacing them.
Best For
- Burglary protection
- Accidental damage protection
- Anywhere in New Zealand cover
Business Interruption Insurance
Helps protect mechanics businesses when they face unexpected events, like natural disasters or fires, which lead to temporary shutdowns or disruptions in their operations. It covers loss of income and additional expenses incurred during the interruption period.
Best For
- Income loss
- Extra expenses
- Temporary shutdown
Employers Liability
This insurance helps protect mechanics businesses from financial losses if an employee suffers injuries or illnesses at work.
Best For
- Workplace injuries
- Legal expenses
- Compensation payments
How much does mechanics insurance cost?
Mechanics insurance premiums are calculated on several different factors including:
- Types of cover
- Turnover
- Location
- Claims History
Mechanics insurance in NZ typically costs between $100 to $200 per month
Who needs mechanics insurance?
Regardless of scale or specialization, mechanic insurance is paramount. It’s not just for large auto service centres but also for independent mechanics, whether they’re operating from home or a local shop. Similarly, both vast auto repair stations and niche service hubs, like transmission or muffler specialists, benefit from it. Even mobile mechanics, attending to cars on the move, should consider this insurance essential for their protection and peace of mind.
Most mechanic insurance policies will cover all employees working under the business. This includes full-time, part-time, and even some contract workers. However, specifics may vary from policy to policy, so always read the terms carefully and consult with your insurance broker for clarity.
Many comprehensive mechanic insurance policies cover damages caused by events like fires, storms or natural disasters, such as earthquakes or floods. This does vary policy by policy so always check with a mechanics insurance broker like us to ensure you fully understand what’s included in your policy.
How do I get proof of mechanics insurance
You can usually get proof of insurance same day when you purchase insurance through Gerrards.
Acquiring a mechanics insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.
To obtain insurance coverage promptly, contact one of our mechanic insurance brokers. We may require you to provide some fundamental details about your business, such as:
- The name of your business
- The total number of employees
- Predicted annual income
- Years of experience in the industry
What does mechanics insurance not cover?
Intentional Damages
If damage is intentionally caused by the business owner or employees, insurance typically won’t cover it.
Faulty Workmanship
Mistakes or subpar services that lead to damages aren’t typically covered. For example, if a mechanic improperly services a car leading to an engine failure, the insurance might not cover the repairs. If you are concerned with covering faulty workmanship, it is best to speak to a broker.
Undeclared Operations
If you’ve expanded services (like adding tire services or car washes) but haven’t updated your insurance, damages from those services might not be covered.
Other common questions about mechanics insurance
Absolutely! Businesses are unique, and so are their needs. Insurance brokers, especially specialized ones like Gerrards, can help tailor a policy that fits your exact requirements.
Yes, most policies provide coverage for tools and equipment. However, the exact amount of coverage varies. It’s crucial to ensure the total value of your tools is declared to get adequate coverage. It is also crucial to make note of any tools that are kept permanently away from the premise such as those in the back of a van or truck.
While not legally required, many landlords, suppliers, or customers might require you to have insurance before engaging in business. Plus, given the potential financial implications of mishaps, it’s advisable to have coverage.
Yes, you can. Regardless of the size of your operation, it’s wise to have insurance to protect yourself from unforeseen liabilities and risks.
