Business Insurance

slid

I have been running a small one man company from my Dad's garage on a part time basis, while working full time. Now redundant I want to try to utilise my business, but if it grows I would need to insure.
Up until now, not much kept in garage, but if business grows I will have a fair amount of customer owned parts on site while I am working on them.

Is it possible to insure parts and tools in a garage that is not owned by or rented to myself? Would my Dad have to insure it through his insurance?

mattymoo

You will need the business in your name and with a full description of the business activities.
You should ensure that cover for goods in trust is added as well.

The fact you do not own the garage is not a major issue. You will simply need cover for stock, business equipment and goods in trust. You should also have public liability cover if customers visit your premises or you carry out work at their premises.

Employers liability cover is not needed unless you take on an employee. However, if you dad helps out, even unpaid, he could be regarded as an employee by the courts so cover would be needed.

slid

Thanks mattymoo,

Any insurers in mind? Simply business declined me today.

mattymoo

what is your trade?

slid

Sales and service of competition dampers (car shock absorbers).

mattymoo

In that case you are probably being declined because the items you sell / work upon are safety critical automotive components. You really need to speak to an insurance broker. They will probably need to speak to a Lloyds broker to see if a syndicate within the Lloyds market is prepared to take you on.

Essentially, there are two types of insurer - composite and specialist / Lloyds.
Composites include Norwich union, RSA, Zurich etc. They tend to do off the shelf products and their underwriters tend to play it safe.
Niche firms such as Tradex and Lloyds syndicates will write heavier risks and consider stuff that is non-standard so to speak.

As for brokers, try people like Towergate, Heath Lambert, Jardine Lloyd Thompson or Willis brokers. Avoid the likes of Swintons who are for private clients only.

dacouch

I would recommend you speak to an Insurance broker and ask them for a road risks motor trade policy with the addition of own/customers stock cover.

I would recommend chaucer for this or you could try tradex although most people in the industry will advise you not to use tradex.

The Road Risks policy will allow you to drive you own vehicles, vehicles in your custody or control for your motor trade purposes (Including customers vehicles).

I woudl recommend you speak to a broker who specialises in Motor Trade Insurance such as fm green as not all brokers fully understand motor trade insurance as it can be very complex.

THE MOST IMPORTANT THING TO DO is get your father to inform his home insurers tha you are running a business from his home (Make sure you make a note of the person you speak to name and the date / time). The Insurers will ask if you have any business customers visiting the home, whether you have public liability insurance. There is a good chance they will advise your father that they do not wish to Insure him any more. If they say this I would recommend you ask the broker who arranges your motor trade insurance to get a quote for your dads home insurance as they should be able to arrange a decent quote.

If you father does not inform his home insurers you are running a business from there they could decline to pay future claims if they discover you are running a business and have not told them.

Good Luck