Insurance for tyre businesses

Tyre businesses can range from wholesale storage and retail fitting through to retreading and manufacturing. The insurance approach can differ materially depending on whether the business stores large tyre quantities, performs fitting or repair work, undertakes retreading, manufactures products, imports tyres or supplies commercial and heavy-vehicle markets.

Why tyre risks can be harder to insure

Insurers may focus on the quantity and concentration of rubber stock, building construction, fire separation, sprinkler protection, storage heights, hot work, machinery, electrical maintenance and housekeeping. Retreading and manufacturing operations can introduce additional process and machinery exposures beyond those of a standard retail tyre outlet.

Property, stock and business interruption

Tyre stock can represent a significant fire load and may be concentrated at one warehouse or workshop. Property insurance may need to address buildings, machinery, racking, stock and equipment, while business interruption can be important if specialist retreading or production machinery would take time to replace following a major loss.

Public, products and motor-trade liability

Retailers and fitters can have liability exposures arising from work performed on customer vehicles, while wholesalers, importers and manufacturers can face products liability allegations involving supplied tyres. Insurers may ask about product brands, countries of manufacture, customer types, fitting activities, recalls, quality controls and whether products are used in passenger, commercial, heavy-vehicle or specialist applications.

Information insurers commonly request

Useful information includes annual turnover by activity, tyre brands and types, import arrangements, manufacturing or retreading processes, maximum stock values, storage arrangements, fire protection, workshop activities, vehicle fitting, customer-vehicle exposure, hot work, machinery values and claims history.

Policy scope and exclusions to review

Check stock accumulations, outdoor storage, theft, heat processes, customer vehicles and road-testing activities. Liability for work on a vehicle, the vehicle itself and product recall costs may be treated differently under the wording.

Tyre businesses: insurance questions

Do tyre retail and tyre retreading need the same insurance?

Their exposures differ. Retail and fitting involve customers, vehicles and workshop activities; retreading and manufacturing introduce production processes and different products liability questions. Wholesale operations can have substantial stock and transit exposures.

What information helps with a quotation?

Turnover split by retail, wholesale, fitting, retreading and manufacturing; tyre categories; maximum stock; indoor and outdoor storage; customer vehicles; testing; exports; machinery; and previous losses.

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 present the actual business activities to suitable insurers and can consider property, business interruption, machinery breakdown, public and products liability, customer-vehicle or motor-trade exposures, marine transit and commercial motor insurance depending on the operation. Cover remains subject to underwriting and policy terms.

General insurance information only. Cover is subject to insurer acceptance, policy terms, conditions, exclusions, limits and deductibles.