Workshop Insurance

While not all insurance is a legal requirement, it is essential to consider in case the following happens: 

• Injury to visitors and members of the public – If someone visits your workshop and gets injured, public liability insurance could help cover the cost of claims. 
• Employee injury or illness – If an employee gets hurt or falls ill because of the work they do for you, employers' liability insurance could help protect you. This is a legal requirement if you have any employees. 
• Loss, damage or theft of equipment – Business contents and tools insurance can help replace your equipment if it's stolen, damaged or lost. 

Because all workshops are different, it's difficult to give a solid figure for what you'll be paying for this insurance without speaking to a broker. This is because your business is unique, and price depends on several factors, including: 

• Type and size of workshop – A bigger workshop handling heavier machinery can mean bigger claims, which can mean higher premium prices. 
• Type of trade – Every business presents different types of risks. Some industries are just riskier than others. For example, working with tools in a workshop can increase your premiums because of issues like tools overheating and working from heights on stools or ladders. 
• Location – As with home insurance, the location of your workshop can affect the price you pay for cover. Areas seen as a higher risk may come with higher premiums. 
• Number of employees – Having more staff can increase your premium. Employers' liability insurance is legally required for businesses with staff in the UK, and even temp or part-time staff count. 
• Equipment value – If you use valuable or specialist equipment, these may cost more to replace. This could be reflected in the price of your premium. 
• Claims history – If you've made a claim on your policy or had claims made against you, it may affect your future premiums.

The best way to get a workshop insurance policy to meet your needs at the right price,  is to speak to the business insurance team at Bionic. Give us a call now or start a journey online now. 

• Break-ins and security – Your insurer will specify the security measures you need to have in place when it comes to your property and may not pay out on claims made for theft if doors or windows were left unlocked. Always check your insurance documentation carefully to make sure you comply with the security required for your property. 
• Non-standard buildings – Workshops in wooden structures, sheds, or non-standard buildings may have higher excesses or specific exclusions. 
• Work away from premises – Workshop insurance can provide cover on your specific premises. If any of your income comes from ‘work away’, meaning work you do away from the workshop – say you install fitted kitchens and installation is part of your business – you may need extra cover. 
• Unattended vehicles – Tools and equipment left in vehicles overnight may not be covered unless you have specific cover in place. Your insurer may deem a ‘safe’ place to leave your tools at night. 
• Wear and tear – Gradual deterioration of equipment or property won't be covered.

Always refer to your own policy wording to see what is and isn’t covered. 

Keeping your workshop insurance costs down doesn't mean cutting corners on cover. But there are practical steps you can take to show good risk management to insurers. This could include: 

• Improve security - Keep tools and equipment locked away when not in use and install quality locks, alarms, and CCTV to reduce the risk of break-ins. 
• Carry out regular maintenance – Keep your tools and machinery in tip-top shape and always document and repairs or replacements 
• Review your cover regularly - Update your policy if your circumstances change. For example, if you move address or hire more employees, let your insurer know. 

If you run your workshop from home – perhaps from a garage, shed, or outbuilding, it’s worth noting that your home insurance is unlikely to cover business activities.  

Your standard home insurance policy is designed to cover your personal belongings and household risks. If you're running a business from home, even part-time, your tools, employees, visitors and any other business-related risks won’t be covered unless you take out a business policy.