As we rapidly head towards 2025, Kingfisher Motor Trade looks at some of the key issues that will impact the industry next year, and how effective insurance and risk management could respond to these concerns.
Electric vehicles: There has been much discussion over the last couple of years about electric and hybrid vehicles and their impact on the industry, from handling broken down and damaged vehicles, to recovering them and storing them safely. We have seen first hand the issues that can arise with EVs, particularly around fire risks.
The good news is that the industry is constantly learning and improving its understanding here, with PROF’s EV Summit last year continuing into discussions involving PROF, PROSE, National Highways, the National Police Chiefs’ Council, AVRO, the IVR, and trade bodies and companies across the UK. We are working together to not only improve awareness and safety, but foresee the challenges ahead, so the industry can pro-actively address concerns before they happen.
From an insurance perspective, we will continue to champion good risk management in this area, demonstrating how the industry is responding to contain the risks, with the aim of reducing insurance premiums in the longer term as more data becomes available on risk mitigation.
Injury or fatality: Sadly, this is an ever-present issue when recovering vehicles. The industry has taken great strides in improving safety – the introduction of flashing red lamps fitted to vehicles will certainly help here, and the cessation of the roll-out of ‘SMART’ motorways – but there is always more to do to educate both employees and members of the public on the dangers people face while working at the roadside, or being stranded in their vehicle.
Employers’ liability and public liability covers can respond in the event of claims from employees or members of the public due to alleged injury in connection with vehicle recoveries, should the worst happen. This is fundamental to all businesses working in the sector; the former is compulsory by law for almost all private businesses, while the latter is strongly recommended to all businesses in this sector, due to the inevitable contact with members of the public as part of your role.
Cybersecurity: This isn’t something that most vehicle recovery businesses will think too much about, yet it’s only a matter of time before it becomes a bigger risk factor. With large volumes of customer and employee data stored on a range of systems, vehicle recovery businesses are prone to this data being compromised. This could disrupt your operations, potentially impact upon your reputation as a business, and cause financial losses.
Statistically, with more and more information moving online, cyber incidents are more frequent than physical theft. Yet, while most businesses would not think twice about insuring against the loss or theft of their tools, equipment, PCs, and vehicles, relatively few businesses insure against cyber risks. Often, it’s businesses who have found out the hard way who think about this cover, as the threat is less tangible than the physical damage or theft of items.
Cyber insurance is available through Kingfisher against this ongoing threat, which looks set to increase in future.
Kingfisher can help
Kingfisher will continue to work with the industry in 2025 to improve safety and provide insurance that is suited to your needs.
You can speak to Kingfisher Motor Trade on 0330 174 4702 or visit www.kingfisherinsurance.com/motortrade for more details.
