Driving customer, stock and business vehicles for insured motor-trade purposes.
For workshops and test stations
Garage & MOT Insurance
Protection designed around the realities of running a workshop: customer vehicles, employees, ramps, diagnostic equipment, premises and the risk of disruption after a serious incident.
More than road risks
Your workshop has interconnected risks
A vehicle can arrive under its own power, be road-tested, raised on a lift, dismantled, stored overnight and returned to the customer. At the same time, employees are using machinery, customers may be on the premises and valuable tools and parts are exposed. Garage insurance can bring these risks together under a combined motor trade arrangement.
Core protection
Cover commonly considered by garages
Loss or damage while vehicles are in your custody or control, subject to wording.
Buildings, tenant improvements, office contents, signs and workshop property.
Ramps, tyre machines, compressors, diagnostics and other specialist equipment.
Employers’ liability, public liability and relevant product or workmanship exposures.
Support for lost income and additional costs after an insured property loss.
MOT stations
Testing brings its own equipment and operational exposures
MOT bays contain valuable equipment and must remain operational to generate revenue. The insurance conversation should include the testing lane, calibration arrangements, business interruption period, inspection pits, lifts, customer access and any linked repair activities.
Insurance cannot replace compliance with DVSA requirements, but the policy should reflect the business that actually operates around the authorised testing station.
Useful details to prepare
- Class of MOT testing undertaken
- Annual test and repair turnover
- Equipment values and ownership
- Security and CCTV arrangements
- Number and experience of staff
- Any recovery, sales or mobile work
Common gaps
Questions worth asking before accepting cover
Vehicles
Are vehicle values adequate? Are courtesy cars, performance vehicles and overnight storage addressed?
Equipment
Would settlement values replace modern diagnostic tools, lifts and test equipment after a major loss?
Interruption
Is the indemnity period long enough to rebuild, replace machinery, recalibrate and regain authorisations?
FAQs
Garage insurance questions
Does garage insurance cover faulty workmanship?
Standard public liability does not necessarily cover the cost of correcting your own work. Specialist extensions may respond to resulting damage or defined workmanship risks, subject to exclusions and limits.
Can courtesy cars be included?
They can often be included, but ownership, vehicle details, permitted drivers and the agreement used with customers should all be disclosed.
Are vehicles left outside overnight covered?
This depends on the policy, location, values and security conditions. External storage should be declared rather than assumed.
Do I need employers’ liability?
Most businesses employing staff require employers’ liability insurance by law, with limited exceptions. Directors, casual staff, apprentices and labour-only subcontractors should all be discussed.
Understand what keeps the site operating
Protect the dependencies that keep the workshop trading
A garage can appear operationally simple until one critical dependency fails. A damaged lift, unavailable MOT lane, fire in a parts store, theft of diagnostic equipment or loss of power can interrupt several income streams at the same time.
A useful review identifies which equipment, approvals, utilities, staff and suppliers are essential. It then considers how long each could realistically take to replace or restore after a serious insured event.
Property values and settlement
Value specialist equipment for realistic replacement
Historic purchase cost may not reflect the amount needed to buy, install and commission modern workshop equipment after a loss.
Replacement specification
Record model, capacity, accessories and installation requirements. A basic replacement may not perform the same work as the equipment currently relied on.
Installation and calibration
Lifts, MOT equipment, alignment systems and diagnostics can require specialist installation, testing, calibration or certification before they generate income again.
Tenants’ improvements
Electrical work, extraction, pits, fixed air lines, office fit-out and security may belong to the tenant even when the building itself is insured by a landlord.
Peak stock and customer vehicles
Parts, tyres and vehicles fluctuate throughout the year. Values should reflect realistic peak exposure rather than a convenient average taken on one quiet day.
Business interruption planning
Plan for the time needed to restore MOT operations
Replacing damaged equipment is only part of recovery. A serious incident may require drying, rebuilding, utility work, equipment delivery, calibration, inspections, approvals and staff or customer communication. The business may then need time to rebuild its normal booking pattern.
The interruption period should be considered against that full recovery journey. A short period selected only to reduce premium can finish before the workshop is capable of returning to its previous turnover.
Information that supports the review
- Annual turnover split between MOT, labour, parts and other services
- Gross profit or other policy-specific financial basis
- Likely rebuild and equipment lead times
- Temporary-premises and outsourcing options
- Dependencies on one lane, lift or specialist technician
- Customer-retention plan during a prolonged closure
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