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If you own or run a vehicle recovery business there’s a very good chance you’re going to need recovery insurance, which is a type of motor trade insurance policy that has been specifically tailored for your recovery business.
Depending on the range of risks you need to cover your business against this type of insurance policy might not come cheap…but fortunately you could find a cheaper quote if you use Quotezone.co.uk’s dedicated motor trade insurance comparison service to compare policies from a wider range of providers.
What is recovery insurance?
It’s a type of motor trade insurance that’s specifically designed for recovery businesses.
It can protect your vehicle recovery business against liability claims or other financial loss if something goes wrong or someone makes a claim against you.
What does recovery vehicle insurance cover?
Recovery insurance is a combination of different types of insurance bundled together to give you the exact protection you need.
The types of cover you can incorporate into your recovery insurance policy include:
- Road risk cover – This covers you to drive vehicles that don’t belong to you.
- Carriage of Vehicles cover – This covers the vehicles you recover while you’re transporting them. Carriage of vehicles cover may or may not be included as part of your goods in transit insurance, but if it’s not it can often be added to a recovery insurance policy as a standalone add-on.
- Breakdown cover – As ironic as this seems, breakdowns happen all the time and it could happen to your own vehicle, so it’s a good idea to make sure you’ve got your own recovery vehicle insurance.
- Business premises cover – This pays for repairs if your workshop or garage is damaged or destroyed by an insured event (like a fire, flood or even vandalism). Consider adding contents cover to protect office equipment too.
- Tools and equipment cover – Protects the tools of your trade along with any expensive recovery equipment you have. If you keep tools in your van or recovery truck check they’re covered while you’re out and about.
- Employers’ liability cover – If you employ anyone, even on a casual basis, then you’ll need this by law.
- Public liability insurance – Covers the cost of compensation if a member of the public has an accident because of your business and takes you to court.
How much cover do I need?
This depends on the type of insurance you’re adding to your policy. For example, if you drive customers’ vehicles you’ll need third party road risk cover at a minimum, and if you employ staff you’ll be legally required to have employers’ liability insurance that covers your business for at least £5 million.
In most other cases the ‘sum insured’ will be based on your own requirements, and will depend on the value of the insured items –your business premises, equipment or tools, for instance.
How much is vehicle recovery business insurance?
Given the fact that every vehicle recovery business will require a different mix of insurance types and coverage levels, it’s impossible to give an average cost for vehicle recovery business insurance.
In addition, insurance providers will take a range of risk factors into account when calculating their premiums, many of which are unique to your business. For instance, they will consider:
- The size of your business
- The business’s location, and the accident and crime rates for that location
- The number of people you employ
- The types of insurance you choose to add to your policy.
How can I lower the cost of recovery truck insurance?
If you’re worried about hefty premiums for your recovery insurance there are a number of things you can do that could help lower the cost:
- Only choosing to insure your business against those risks that the business is likely to encounter. For instance, there’s no point including European Cover if you only ever operate in the UK.
- Ensuring that all named drivers on your Road Risk cover are at least 25 years old and have clean driving records.
- Improving security by investing in site alarms, CCTV and high-security gates for your business premises, or vehicle immobilisers for any recovery trucks you own.
- Paying for your recovery insurance on an annual basis rather than monthly.
- Transferring your personal no claims bonus to your traders policy – not all insurers will let you do this but it’s worth asking.
- Agreeing to a higher voluntary excess.