Commercial Insurance

[selenac]

We own a workshop and haulage company, our mechanic is self employed but keeps his tools at our yard, would we need to cover his tools with our insurance or should he provide his own

[Old_Geezer]

One of you ought to do so. I'm just guessing but I'd expect that if you insisted the tools were there then the onus was on you; if you were simply being kind enough to let him keep them there then the onus would be on him. Or if he is a valuable asset you might want to cover it as part of the deal. I'd suspect legally you weren't obliged but how difficult is it to agree the terms of the contract ?

Or you could both insure them and have a word with Bill Sykes.

[Buenchico]

A general principle of insurance is that you can't insure anything which you don't have a financial interest in. (So, for example, I can't take out insurance against my neighbour's garden shed being blown down, as I wouldn't lose any money if that happened).

So you need to consider who would have to bear the loss if the mechanic's tools were stolen and neither of you had any insurance. I suspect that it would be the mechanic, meaning that he needs to insure them.

However if there's a contractual arrangement between you and the mechanic which means that he could successfully sue you for compensation if his tools were stolen, then it's you who needs the insurance cover.

[Quizproquo]

i would think the owner of the yard also has a financial interest in this case as without tools, the mechanic can't work on any of his wagons.
Maybe you should come to some joint agreement if you can.

[Maydup]

One of the definitions of being self employed is that you have your own tools. The mechanic needs to insure his own tools, and he should cover that cost in his price for the work he does for you, just he would for other overheads.