Insurance for smash repair and panel beating businesses

Smash repairers can present a combination of property, fire, vehicle, customer-car, machinery and liability exposures. We can assist panel beaters, body shops, accident repair centres, paint and refinishing businesses and related automotive repair operations.

Why smash repair risks can be harder to insure

Insurers may focus on spray booths, paints and solvents, welding and hot work, battery charging, electrical systems, extraction, housekeeping, flammable-liquid storage, vehicle concentrations and the construction and fire protection of the premises. Claims history and the value of customer vehicles held overnight can also materially affect insurer appetite.

Property and business interruption

Property insurance may need to cover buildings, workshop equipment, paint systems, spray booths, tools, stock and other contents. Business interruption can be important where a major fire or machinery loss would prevent the business from operating for an extended period.

Customer vehicles and motor-trade exposures

Smash repairers may have custody or control of customer vehicles while they are being repaired, stored, road-tested or moved around the premises. The number and maximum value of vehicles on site, overnight storage, security and road-testing arrangements should be disclosed to insurers.

Public liability and completed work

Liability exposures can arise from workshop activities, work performed on vehicles and completed repairs. Insurers may want to understand the type of work undertaken, subcontracted services, vehicle types, road testing and whether the business performs structural repair, welding, calibration or specialist work.

Information insurers commonly request

Useful information includes annual turnover, building construction, fire protection, spray booth details, paint and solvent storage, welding procedures, electrical maintenance, security, maximum customer vehicles on site, maximum individual vehicle value, tools and equipment values, road testing and claims history.

Policy scope and exclusions to review

Review spray-painting activities, booths, flammable materials, customer vehicles, workshop machinery and interruption following an insured event. Defective workmanship and the cost of redoing repairs may be excluded even where resulting damage is covered.

Smash repairers and auto body shops: insurance questions

Are customers’ vehicles covered by public liability?

Do not assume so. Property in your care, custody or control can be restricted under liability wording. Customer vehicle damage, road testing and work away from the premises need explicit review under the relevant motor-trade or other sections.

What information helps with a quotation?

Maximum number and value of customer vehicles; repairs and painting split; storage and security; road testing; subcontracted work; spray-booth details; equipment values; and claims history.

Can Mercantile review cover after a claim or non-renewal?

We can assess the current operations, loss history, reason for non-renewal and available insurance markets. An alternative quotation or equivalent terms cannot be guaranteed. Include the current schedule, endorsements and claims details with your enquiry.

Request an insurance review or read about insurance after claims or non-renewal. Cover depends on insurer acceptance and the policy wording, schedule, endorsements, limits and excesses.

How Mercantile can assist

We can present the workshop and motor-trade exposures to suitable insurers and consider property, business interruption, liability, customer-vehicle, machinery, commercial motor and other relevant covers depending on the operation. All cover remains subject to underwriting and policy terms.

General insurance information only. This page does not provide automotive, repair, contractual or legal advice.