To become a driving instructor or ADI as it is referred to by the industry; is a long but worthwhile process. Once you reach the end of your training and you are qualified, naturally you will take the next step to either buying into a driving school franchise or starting up your own driving school business.
Either route you take, paperwork plays an important part, especially your insurance cover! With the increased risk of instructing new and first time drivers, we have got 5 insurance tips that you will need to bear in mind.
1 – Dual control cover
A dual control vehicle is pretty much an essential for driving instructors. It gives you a greater degree of control over the vehicle should your learner driver make a mistake. But having dual controls fitted to your car means that insurance agencies will regard you as having ‘modified’ the vehicle, and in most instances will not provide cover.
You can avoid this by: looking for specialist dual control vehicle insurance.
2 – Personal liability cover
Taking out personal liability insurance means that if a person (and that could be a pupil or a member of the public) is injured as a result of your actions whilst you are working and decides to sue you personally for compensation, you are covered financially. Personal injury claims can run into thousands of pounds, even for relatively minor injuries. Could you afford to pay that compensation, as well as the court costs and legal fees, out of your own pocket?
You can avoid this by: making sure you have adequate personal liability cover that will protect you financially in the event of a financial claim against you.
3 – Loss of earnings
Your vehicle is, quite literally, your office. It’s the main tool of your trade (apart from your skill as an instructor, of course!) and it’s your primary source of income. If your vehicle is off the road for even a short while it can make a huge impact on your earnings. Lessons have to be cancelled, fees are lost and your reputation as a reliable, dependable instructor can also take a hit, affecting your net income over a longer period of time.
You can avoid this by: taking out ‘loss of earnings’ cover that will protect you financially and keep the money coming in whilst you make alternative arrangements. Another tip is to look for an insurance package that will provide you with a hire dual-control car whilst your own vehicle is off the road.
4 – Normal ‘comprehensive car’ insurance
Don’t be fooled into thinking that ‘fully comprehensive’ car insurance will cover you for teaching people to drive. Look on the document and you will see that cover is usually classified for ‘domestic and pleasure’ use only. In some cases, ordinary car insurance won’t even cover your daily commute to work and back! If you use your vehicle for work and your insurance doesn’t cover you for this, then because you have broken the terms of your insurance contract it could mean that you are effectively driving whilst uninsured. This could result in a criminal record and a fine, which if you’re newly qualified could put your ADI licence in jeopardy.
You can avoid this by: taking out proper driving instructor insurance, rather than just normal comprehensive car insurance.
5 – Employer’s Liability insurance
If you run a driving school and employ others, even if those people are sub-contracted or part-time, you must by law have employer’s liability insurance. Don’t be fooled into thinking that this only applies if you are employing people full time and on PAYE. Your policy must provide at least £5million in cover and be provided by an authorised insurer.
Failure to have the correct EL insurance could lead to prosecution and a fine. It also means that if an employee is injured whilst working for you, they could sue you personally for financial compensation.
You can avoid this by: taking out employer’s liability cover as soon as you employ anyone, even if they are sub-contracted or part-time.
At riscx.com, we are driving school insurance specialists that help you search and compare driving instructor insurance to get you the best policy deal. Apply to day and see how much you could save!