# Insurance query



## banditbarron (Sep 1, 2007)

Hi guys, Just wondering if you chaps do a policy that can cover a smallish unit/workshop that will be used for private use no actual business running from there.

However there may be say 5 cars inside not all mine so would they be covered on the owners insurance or would i need to have a cover for that?

For example my boss has just bought a Beetle Rsi (rare car) and it will be at the unit while i clean it up and do small works like brake changes etc. Say the car was stolen or there was a fire inside the unit, i guess his insurance would wiggle their way out of paying saying it was in a workshop and not at home? would that be rite?

If i need insurance could you give me a rough price scale of what it might cost to cover the unit for the above kind of uses.

Thanks 
Dave :thumb:


----------



## Shiny (Apr 23, 2007)

Hi Dave

I think you will be struggling, to have a commercial policy you will need to be running a legitimate business, therefore registered as self employed, declaring your earnings to the tax man and so on. The type of policy you will need won't be cheap either, so it won't be cost effective for you to hand over most of your turnover to an insurance company. Then you'll have to make sure you can run a motor trade business from the premises, pay business rates etc

If it is totally private/a hobby etc, in theory the owner's car insurance should/could cover the car. But things will get very very messy, it will be difficult for an Insurer to understand why someone is paying for a sizeable unit and working on people's cars for free, so they may come looking for you to reimburse any payment they make out in the event of a claim. I guess you could also be held legally liable even on a private basis (not something we come across only really dealing with commercial customers so i don't know for sure, but i'm sure someone in the legal game will know) on the basis that you still had a legal responsibility for the vehicle's safekeeping whilst in your care. But you won't be able to get insurance cover it is a hobby.


----------



## banditbarron (Sep 1, 2007)

Thanks mate understand what your saying there.

So basically its best the car owners speak to there insurers prior to bringing me their car to work on to make sure they would be covered should the worst happen.

I'm guessing my personal tools etc i can add on to my house policy if i advise them where they will be used and left on the odd occasion?

Cheers

Dave


----------



## Shiny (Apr 23, 2007)

I seriously think you will have trouble convincing any insurer you that you have a unit that can hold 5 vehicles and you will keep your tools there so you can work on peoples cars as a hobby. I'm almost certain they will deem it as a business and not cover your tools.

I also still think that an Insurer, whilst they may pay out for their policyholder's car if it is damaged, may well seek reimbursement of their costs from you, even if you are doing it as a hobby. There is a bailment/legal liability issue with what you are doing, even on a hobby basis. So your worry is not as to whether your customers insurers will pay for damage to their cars, but if the Insurers will come knocking on your door for their money back.


----------

