Hugh J Boswell discusses whether technicians’ insurance is valid when it comes to fitting customer supplied parts. Here, the insurance broker not only advises on what to do and what not to do, but it explains how motor factors can best serve their clients in this regard.
Motor Factors are always looking to offer the best possible service and advice to their clients when supplying the product required to get the job done. Boswell’s motor trade clients often ask whether their insurance covers fitting parts supplied by customers. As fitting customer supplied parts is a hot topic that directly affects motor factors, the company wanted to share its stance on the matter.
Following Boswell’s 40 years of experience in providing insurance to the motor trade, the company has a good insight into what works well. Here is its advice.
The first element to acknowledge is that all insurance policies differ, so there is no hard and fast rule, but many motor trade insurance policies will not cover the liability arising from the fitting of second-hand parts. This means that if a loss was to occur as a result of used parts being fitted, it would potentially not be covered.
Another key issue in this debate is ascertaining whether the part is new or indeed used/second-hand. Without the part being purchased from a trusted parts supplier, establishing its origin can be difficult.
The other issue is being able to establish liability. When something goes wrong, it can be difficult to identify whether negligence can be attributed to the fitter (covered under the Defective Workmanship section) or the part itself (covered under the Product Liability section). Even if the part could be identified as being at fault, passing claims to less reputable suppliers/manufacturers – especially if purchased from overseas – can be problematic.
To this end, the company advises its clients not to accept customer supplied parts to avoid risk. Motor factors also need to be vigilant of the source. If a garage customer asks for your advice on the matter, feel free to provide Hugh J Boswell’s details in order to avoid any risk or misinterpretation; the company says it is more than happy to provide guidance on the subject.
