Motor Trade Insurance Explained - Why Employers Liability Matters
Working in the motor trade industry can be surprisingly dangerous. Whether moving a vehicle, working in a repair or body shop, or handling a multitude of chemicals—this seemingly innocuous industry actually hosts a number of deadly perils.
In order to safely protect employees, employers have a legal obligation to purchase Employers liability cover as part of their Motor Trade Insurance package.
Key Motor Industry Risks
According to the Motor Vehicle Repair Industry (MVR), there have been 33 deaths and 7,000 injuries in the last five years, which highlights the very real exposure to trade workers and your duty of care as a trade employer.
Consider this situation: several employees are sweeping and mopping the floor of your vehicle repair bay or body shop. Following all procedures, and through no fault of their own, one employee slips into the vehicle lift causing it to fall, landing on himself and another worker.
The employees sustain serious injuries that prevent them from working for at least four weeks. Suddenly you find that they are claiming your business is responsible and are seeking compensation from the accident, including legal costs.
But with proper employers’ liability cover, you would be protected in such a situation—which has the potential to happen every single day—and you would avoid having to pay such astronomical costs with no prior warning.
Do All Businesses Need Liability Cover for Employees?
All businesses must possess employers’ liability cover unless they qualify as one of the following:
- Companies where the owner is the only employee
- Family businesses where all employees are closely related
- Public organisations such as government departments
- Health service bodies
- Organisations financed through public funds
Certificates Need to Be Displayed
Once you obtain employers’ liability cover, your insurer will provide you with an official certificate of insurance to verify your cover. You must display a copy of the certificate in a place where employees can easily read it or display the certificate electronically. But if you do display it electronically, you have a duty to educate your employees on where and how to find the certificate.
Some diseases or injuries can appear decades after exposure and some Insurers are still receiving a wealth of asbestos claims many years after employees had completed their work and left their employment. As such, you should maintain a complete record of your insurance certificates. Insurers are now also obliged to register your details via the Employers Liability Tracing Office (ELTO), that way, proof of your past cover is available to potential claimants.
FREE Business Insurance Review
Insync are trade cover specialists, we can Compare Motor Trade Insurance from the UK’s leading Insurers including Aviva, Allianz, AXA, NIG & LV=.
Request a quote online, alternatively, why not book a review with one of our expert Gurus at a time that suits YOUR diary and we can help you find the right level of cover at the right price.
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About the Author
I’m passionate about family, sport, technology and business.
In fact, I have always been fascinated by business, whether it was running the school tuck-shop or my Saturday job in the local store, I was always looking for ways to improve or view things differently.
I have enjoyed an amazing career fast approaching 25 years in the insurance industry, which has given me real insight into the challenges and opportunities faced by SME businesses in today’s ever-evolving marketplace.
I co-founded Insync Insurance, to offer companies a new way to buy and manage their business insurance. A synergy of digital servicing and personal expertise - utilising the latest technology to enhance relationships, not to replace them.