Insurance for a garage business
A garage business has vehicles belonging to other people in its care every day. That single fact explains why an ordinary public and employers' liability policy falls short here.
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The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert.nl or call 072 - 509 24 56 and we will take it from there.
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- We compare the offerings of several insurers
- An adviser checks whether the cover suits your activities
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
- Independent advice
- Several insurers
- Switching arranged
- Help with claims
In brief
The public and employers' liability insurance has a care, custody and control exclusion: damage to property in your custody that is not yours is not covered. In a garage that applies to virtually every vehicle on the premises. That is why this sector works with a garage insurance, in which customers' cars, the trading stock and the liability are dealt with together. There is a version for sole traders at garage insurance for the self-employed mechanic.
The second feature is that you take someone else's vehicle on the road. For a test drive, a run to the test centre or collecting a car, Article 2 of the Dutch Motor Insurance Liability Act (WAM)simply applies. If you drive under trade plate, matching liability cover has to go with it, and the conditions determine who may drive: staff only, or a customer on a test drive as well, and with or without accompaniment. If you let a customer drive away alone where the policy does not allow it, there is no cover.
There is also equipment that can be put out of action. A fire in the workshop hits not only the business contents and tools, but also the turnover in the months afterwards; that is what business interruption insurance is for. Pollution of the soil by waste oil or brake fluid runs through environmental damage insurance, and mechanics dropping out through sickness absence insurance.
This page deals with one situation. The full overview is on Compare car insurance.
Insurance that matches your sector
Every sector carries its own risks. We translate those into cover that genuinely fits what you do day to day, rather than a standard package that just happens to apply to your business too.
Sectors
Tailored
CoverWhy arrange it through Finass Verzekert?
We look at the terms as well as the premium, and stay your point of contact when there is a claim.
Independent
We are not tied to one insurer and compare on the basis of an objective analysis of several companies.
One fixed adviser
You call or email someone who knows your file. No menu options, no changing call centres.
Switching without hassle
We cancel your old policy and align the start date, so you are never a day without cover.
Help with claims
We report the claim and monitor how it is handled. In urgent cases you can reach us on the emergency line.
Where things go wrong in a garage
Four situations from everyday life in the workshop and on the forecourt.
Damage to the customer's vehicle
A car that falls off the lift, a door that hits a pillar, paint damage in the wash: all damage to property in your care, custody and control. The garage section for customers' motor vehicles covers this, but note its scope. Damage to the part you were working on, and the cost of redoing your own work, almost always remain for your own account.
Consequences of a repair or inspection
A wheel that comes loose after a tyre change or a brake line that is not properly connected can cause injury to third parties. That is liability for your workmanship. A test certificate wrongly issued is a different matter: if the customer only loses money as a result, this is pure financial loss and the claim belongs with professional indemnity insurance.
Fire, charging and batteries
A workshop contains flammable substances and charging equipment. Insurers therefore impose prevention clauses: an approved charging point, separate storage of liquids, inspection of electrical installations and a ban on unsupervised charging. If such a clause is not complied with, payment for a fire can be lost. Keep the inspection reports.
Staff in the workshop
Your duty of care follows from Article 7:658 of the Dutch Civil Code and extends to agency workers and trainees. Working on high-voltage systems in electric cars calls for demonstrably trained mechanics and a documented working method. Without that evidence the employer is in principle liable for injury, even where the mechanic was careless.
What does your premium depend on?
- Nature of the work: servicing, accident repair, trading or all three
- Payroll and number of engineers: the yardstick for employers' liability
- Number of trade plates: determines the scope of the test drive cover
- Value of the trading stock: number of vehicles and average value on the premises
- Security of the premises and the grounds: fencing, cameras, key safe and alarm response
- Fire prevention in the workshop: storage of liquids, charging points and inspections
Insurers weigh these details differently. That is where your saving is.
What is covered
| Situation | Motor trade insurance | Ordinary AVB |
|---|---|---|
| A customer hits a post during an unaccompanied test drive | Provided that | No |
| A car from your trading stock is stolen from the premises at night | Yes | No |
| Your mechanic damages a customer's car on the way to the test centre | Yes | No |
| A customer's set of keys is lost and the lock system has to be replaced | Provided that | No |
| Waste oil leaks into the soil under the workshop floor | No | No |
| Three months of lost turnover while the burnt-out workshop is rebuilt | No | No |
As soon as someone else's vehicle is involved, ordinary public and employers' liability insurance is almost always the wrong policy.
Frequently asked questions
This is what people ask us most.
Is my customer's car insured while it is on my premises?
Not automatically. Liability insurance excludes damage to property in your care, custody and control, and the customer's own policy is not intended for your business risk. The garage policy has a separate section for customers' motor vehicles. Check whether it covers both damage during work and theft and fire on the premises.
May a customer take a test drive unaccompanied?
That depends on your conditions. Many policies require a member of staff to go along, or set requirements on age, holding a driving licence and recording the driver's details. An unaccompanied test drive that is not permitted can lead to recovery against your business after a loss. Put your arrangements on test drives in writing and keep a copy of the driving licence.
We also sell cars. Does that change the cover?
Yes. Trading brings a stock risk and, on top of that, liability as a seller: a concealed defect or an incorrect odometer reading leads to a claim by the buyer. Such a claim is about money and not about injury or damaged property, so the ordinary liability section offers no help. So always declare the trading activity when you apply.
Are fines and environmental costs covered?
Administrative fines and penalty payments cannot be insured, because they are a sanction and not compensation. Clean-up costs after soil pollution on your own premises fall outside liability insurance and belong on an environmental damage policy. Pollution at a third party's premises, for instance after a leak during work on site, is assessed differently.
Every situation is different. For these situations we have a separate page.
- Business interruption insurance by sectorThe main page
- Insurance for the automotive sectorCustomer vehicles, trade stock, test drives
- Insurance for justice, security and public administrationUse of force, decision-making, aggression towards staff
- Insurance for the justice and enforcement sectorLiability, staff, property
- Insuring the cars of a property and management organisationPool cars, keys, your own premises
- Insurance for public administrationLiability, directors, buildings
- A few cars on the business: what small and medium-sized firms arrangeSeparate policies, changes, growth
- Liability insurance for a car dealership or garageMotor vehicles, customers' cars, workshop
- Business contents insurance for garagesLifts, tools, customers' cars