What is a drivers risk extension?
If as part of your business you or your staff drive or test drive client cars it's worth checking your insurance policy to ensure that you have what's called the motor trade extension or the "drivers risk extension".
Although a standard public liability policy includes damage that you cause to other peoples’ property, this does not extend to damage that you cause to a client’s vehicle whilst driving it. If you ever drive your clients’ vehicles, you should also include the driving risk extension in your public liability policy.
Damage to or theft of a customer's vehicle that is your care custody and control while road testing is a major risk, it's likely that in the event of an accident, your clients' insurer we'll sue your business for the resulting damage or loss.
There is also a risk of being sued, in the event that you were one of your staff injure somebody while on that test drive or moving the vehicle around.
Who should consider a drivers risk extension?
This is not just mechanics, panel beaters, truck repairers, but also car groomers, valet car parking etc.
You may also have extended your risk by offering clients a courtesy vehicle and you should check to ensure that the cover on the car includes the person driving the vehicle and guard against you been sued by any damage of that they do.
So remember claims as a result of injury or damage, in a vehicle is most likely to be excluded under normal public liability policies if you are unsure speak to a broker ask him to review your policy and your requirements.
Note: This cover may not extend to claims as a result of faulty workmanship if you feel this may be a risk once again you should talk to a broker.
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