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How the tyre industry can manage their insurance risks and costs

From a diminishing insurance market, to fire and staff safety and wellbeing, the UK’s tyre industry is under constant and increasing pressure.

There are numerous risks that could affect your business and your staff. In our experience, the most common insurance claims in the tyre industry include:

  • Employer’s Liability - It’s a legal requirement for businesses with staff to take out employer’s liability insurance to provide cover when a member of staff becomes sick or injured because of work. And unfortunately, despite the tireless efforts of the NTDA and the Roadside Emergency Action Concerning Technicians (REACT) scheme, roadside injuries for tyre fitters are still a reality.
  • Fire - Consider a range of passive and active measures designed to suppress, if not extinguish, the fire and ensure there is more than enough time for everyone to make a safe escape, including:
    o Sprinkler systems on the premises
    o Fire detection and alarms
    o Passive fire protection such as fire-resisting walls, floors and doors
    o Emergency procedures and training for all staff

Traditional risks will always need consideration but technological developments in the industry, such as electric and hybrid vehicles, are introducing hazards into the workplace that equally need to be managed. Not to mention the increasing risks of cyber-attacks on the client data that you hold.

Managing costs and premium volatility

Avoiding a claim is always better than having one in the first place, not least, because it can have an adverse effect on your premium in the future. Understanding your risks and managing them effectively can help to reduce the frequency and cost of your claims. Plus, it can help to create a risk-aware culture in your business.

Reporting claims early with full information will ensure that your insurer can get each claim on the right damages and costs processes as early as possible. By doing this it can make it easier to reduce time dealing with the claim and help you receive any claim payments faster. Depending on your insurer, you may also be able to access repair networks, which can save time and money in repairing your vehicles. Reduced costs will reflect in the claims experience and may have a positive impact on future premiums.

The information contained herein is based on sources we believe reliable and should be understood to be general insurance and risk management information only. The information is not intended to be taken as advice and cannot be relied upon as such.

Statements concerning legal, tax or accounting matters should be understood to be general observations based solely on our experience as insurance brokers and risk consultants and should not be relied upon as legal, tax or accounting advice, which we are not authorised to provide.

 

This is a marketing communication MC200822772.

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As experts in insurance, we take a look at the issues affecting the tyre industry today. Find out how you can reduce the risks to your business and employees

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