Training School Insurance Explained

What you need to know about Motorcycle Training School Insurance

As a training school, you’ll have a range of bikes – anything from a scooter with a small engine to a powerful superbike, to suit riders of all ages and abilities.

It’s important that you get appropriate cover to protect your business. You can build your cover based on your business needs, pick and choose the most suitable elements to help you to have the protection you’re looking for.

The policy must cover the motorcycle for third party injury and third party property damage. The cover will include trainees of all ages and ability while they are under guidance and tuition.

Make sure that all vehicles are added to the policy and any changes should be made immediately, to ensure they are covered on the policy.

Freelance, subcontractors and self employed instructors should be sufficiently covered too, with adequate personal business cover if they ride their own machine.

This kind of cover can be added to the trade policy for an additional premium and ensures a blanket cover for all instructors. Professional Indemnity is strongly suggested for all motorcycle instructors – regardless of the cost.

If sufficient business cover is not in place the individual instructor and/or the ATB Owner is personally liable.

 

 

Public Liability Insurance (PL)

Public Liability (PL) insurance helps protect your business against claims from third parties for property damage or injuries, such as slips, trips, or falls, excluding employees. Accidents can happen unexpectedly, and PL insurance covers compensation costs and legal expenses if you’re found negligent. For those working from home, ensure your home insurance includes adequate business cover, and declare your home as your place of business if applicable.

 

Employers Liability Insurance (EL)

Employers’ Liability (EL) insurance, usually a legal requirement for businesses with employees, covers compensation costs if an employee is injured or becomes ill due to work-related activities. Whether the harm is accidental or caused by the nature of their duties, employees have the right to claim compensation. EL insurance safeguards both employees and the business against such claims.

 

Employers Liability Insurance for Self-Employed Workers

Employers’ Liability (EL) insurance is not legally required if you only work with self-employed individuals who have no employees. However, if self-employed workers operate on your premises, use your equipment, or follow your instructions, you are responsible for their health and safety. In such cases, appropriate insurance cover is necessary.

 

Professional Indemnity Insurance (PI)

As a professional business providing advice and services to clients, Professional Indemnity cover should be seen as essential in your business insurance package.

It is important to be confident in the quality of work the business delivers but even with the best intentions, things can go wrong.

If a client was to sue because they were unhappy with the service your business provided, Professional Indemnity insurance provides cover for your business for breach of professional duty.

Even if you have not made a mistake legal cover is necessary to fight a claim against you or your business.

You should consider Professional Indemnity Insurance if you:

• Provide expertise, skills or advice to customers/clients
• Have access to clients confidential information
• Provide professional services – where training could be challenged

The reality is that any small business providing a professional service that can be challenged is vulnerable to a claim of negligence when the advice or service fails to meet a client’s expectations.

These kinds of claims can be costly in time and money and disruptive regardless of whether they are legitimate claims or not.

Note: In general policies will exclude the use of mechanical vehicles and bodily injury. For ATBs to be appropriately covered they must have these exclusions removed from the policy.

 

Personal Accident Cover (Personal Injury)

Personal Accident cover is an additional insurance that can be purchased by individuals or group. It provides compensation and some financial security in the event of bodily injury as a result of an accident.

The quality of the policy is the decision of the individual.

Personal Accident policies pay out in the event that any of the following occurs as a direct result of an accident (policy dependent):

• Hospitalisation
• Loss of limb, sight, speech, jaw or hearing
• Partial disability
• Death
• Inability to gain any employment
• Damage to clothing when bodily injury occurs

Note: There are different policy levels of Personal Accident cover, the more you pay the more cover is offered. Cheaper policies may only pay out on death, whereas more expensive policies may pay out on more minor injuries.

 

Premises and Stock Insurance cover (can include Business interruption cover)

To protect your premises and stock

Your business equipment and furnishings are vital to the daily running of the business. Contents and stock insurance cover helps make sure that you can continue trading if the things you keep on your business premises are lost, stolen or damaged by an insured event. It covers the cost of replacing them, getting you back on your feet to continue trading. Depending on the policy, replacing stock maybe based on its cost price and not the retail value.

 

Business Interruption

This cover offers protection in the event of an Insured occurrence causing financial disruption to your business. It is designed to protect businesses from financial loss due to damage to the business premises for insured instances such as fire, flood or storm damage.

Whilst buildings insurance will only give cover in the event of physical damage to the property, business interruption insurance provides cover for potential financial loss of income that the business would have received had conditions been normal.

Depending on the severity of damage to the premises, this could mean the difference between continuing business as normal and closing the company. If your business is unable to trade because of an interruption, business interruption insurance should cover lost income for a minimum of up to 12 months.

 

These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements.

Disclaimer: the sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication.

You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Devitt accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Get in touch with us for help with your motorcycle training school insurance today >