Public and employers' liability
- Damage to customers' property
- Injury to visitors on the premises
- Employers' liability
- Pure financial loss excluded
Customers' property · test drives · described activities
Garage insurance for automotive businesses
Motor trade insurance (garageverzekering) bundles the risks of a business that works with other people's motor vehicles. The described activities on the policy determine whether that cover matches what you actually do.
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- 9.5 customer rating for a new policy
- AFM licence 12016589
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Deze pagina in het Nederlands: Garageverzekering voor automotivebedrijven.
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.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
- 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.
In brief
In the automotive sector there is almost always someone else's property on your premises: customers' cars, lease cars, trading stock, vehicles being worked on. Motor trade insurance is built around that. The core consists of two parts: the liability of the business for injury and property damage, and the motor vehicle cover for every vehicle used in the course of the business, whether it belongs to you or not.
That second part is unusual. Every motor vehicle is subject to the compulsory insurance requirement of Article 2 of the Dutch Motor Insurance Liability Act (WAM). If a mechanic drives a customer's car to the rolling road, or a salesperson takes a test drive on trade plate, that journey must be covered. Motor trade insurance arranges this centrally, so that you do not have to check for each vehicle whether the customer's own policy is adequate. Pay attention to the wording of the use and to who may drive on your behalf.
You then choose additions: own-damage cover for customers' property and trading stock, cover for contents and tools, business interruption and employers' liability. See also the general commercial motor trade insurance for the body, per component.
What does motor trade insurance consist of?
Three blocks together make up the cover for an automotive business.
WAM and test drives
Cover for every vehicle used in the business.
- Customers' cars during work
- Test drives and collection and delivery
- Trade plate
- Recording the circle of drivers
Own damage and stock
Damage to the vehicles on your premises or being worked on.
- Trading stock on the premises
- Vehicles in the workshop
- Requirements for site security
- Key management as a condition
What is covered
| Situation | Basic | Extended |
|---|---|---|
| A collision on a test drive in a customer's car | Yes | Yes |
| Injury to a visitor in the workshop | Yes | Yes |
| Fire in the trading stock on the premises | Provided that | Yes |
| Theft of a customer's car outside opening hours | No | Provided that |
| Putting right your own defective repair | No | No |
| Soil contamination under the workshop | No | No |
What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) that you receive before you take out cover.
Four points for automotive businesses
These are the points on which the discussion after a claim tends to founder.
The described activities must cover what you really do
The policy schedule states the business activity: for example independent garage, dealership, accident repair centre or MOT testing station. That description must match what you actually do. If you expand into tuning, LPG or battery work, hire, taxi services or trading in damaged cars, the risk changes materially. If you do not report it, that engages the duty of disclosure under Article 7:928 of the Dutch Civil Code and the insurer may reduce or refuse the payout under Article 7:930 of the Dutch Civil Code. Have every extension recorded in writing.
Damage to the vehicle you are working on is a separate risk
The liability cover relates to damage to third parties' property. But damage to the vehicle you have in hand, and certainly the cost of redoing your own defective work, usually falls outside it. The same applies to the pure financial loss the customer suffers because they cannot use their car. There is separate own-damage cover for the vehicle being worked on. For advice and inspection errors, professional indemnity cover may be needed. Go through this point by point.
Security and key management are conditions of cover
For vehicles on the premises, insurers impose requirements: a locked and lit site, fencing, camera surveillance, a key safe and a record of who holds which key. If a car is taken using the key that was in the ignition or in an unlocked cabinet, claims are often declined. Set the key protocol down in writing and instruct your staff. Report claims promptly as well: Article 7:941 of the Dutch Civil Code requires you to do so and late notification costs cover.
What falls outside motor trade insurance
The following are excluded, among others: damage caused by taking part in competitions, speed trials and circuit driving, driving without a valid driving licence or under the influence of alcohol or drugs, and soil and environmental damage, for which separate environmental damage insurance exists. Also hot work such as welding, grinding and cutting without the prescribed precautions lead to claims being declined. Fines and penalty payments are not insurable, and damage caused deliberately or through wilful recklessness is excluded under Article 7:952 of the Dutch Civil Code.
What does your premium depend on?
- Business activity and operations: servicing, accident repair or trading
- Turnover and payroll: the usual bases for calculation
- Number of vehicles on the premises: stock and customers' cars
- Security of the site and the building: fencing, cameras, key management
- Number of test drives and courtesy cars: more journeys, more risk
- Claims history: the number and size of claims
Insurers weigh these details differently. That is where your saving is.
How we arrange it
- You request a quoteWe take stock of your situation, risk and wishes.
- We compareseveral insurers, on premium as well as conditions.
- You receive a proposalWith an explanation of the differences and the exclusions.
- We arrange the switchIncluding cancellation, so there is no gap in cover.
9.5New policy
9.8Claims handling
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Frequently asked questions
This is what people ask us most.
Are customers' cars covered?
For the road risk it does: test drives, collection and delivery and moves on the road fall under the motor vehicle cover of the motor trade policy. For damage to the vehicle itself, for example by fire or theft while it is with you, separate own-damage cover is needed. That usually comes with requirements on site security, key management and a maximum number of vehicles.
Does the policy cover test drives on trade plates?
Yes, that is one of the core elements. Journeys on a trade plate fall under the motor vehicle cover, provided the use stays within the conditions attached to the plate and the driver belongs to the group described on the policy. Private use of a trade plate outside those limits is a well-known cause of disputes at claim stage.
What if a repair causes damage later on?
If the error causes damage to other property or injury, the liability cover comes into play. The cost of redoing the work and replacing the defective part usually remains for your own account, as does the customer's financial loss. Check what run-off and warranty arrangements your policy contains on this point.
Do I also need environmental damage insurance?
In most cases, yes. Soil contamination by oil, coolant or fuel does not fall under motor trade insurance and clean-up costs can run high. Environmental damage insurance covers remediation on your own site and at third parties. Insurers impose requirements on liquid-tight floors, containment provisions and the storage of hazardous substances.
Are my contents and tools included?
Not automatically. Lifts, diagnostic equipment, tools and stocks of parts are insured on a business contents and goods policy. That can run as a module alongside motor trade insurance or be taken out separately. Pay attention to the basis of valuation and to whether tenant's improvements, such as fittings you have installed yourself in rented premises, are included.
Read more
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Have your motor trade policy reviewed?
Request a quote without obligation. We set out the described activities, the vehicle cover and the security requirements of each insurer side by side.
Prefer to call? 072 - 509 24 56, weekdays 09:00–17:00.
Claim on the road? Emergency line 06 - 55 20 40 72.
About our service
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
This page was written and checked by an adviser at Finass Verzekert. Last updated on .
The information on this page is general in nature and is not personal advice.