I have a mate who sells motorcycles, he is getting very busy and needs some help, one way I could help is to valet, service and do minor repairs to bikes in my spare time and earn a bit of extra money, in fact I would enjoy it so may dedicate a day a week to it if it worked out. I have a double garage so could keep one or two on the premises at any one time with out them being in the way.
However I would need to make sure they are insured for accidental damage and theft if his policydoes not cover them when off his site, which is questionable, also I would ideally need to be able to ride the bikes back and forth from his shop.
My policy covers me third party on another bike which is not good enough if I were to drop a £5000 R1 or similar.
Any thoughts?
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Get him to talk to his insurance broker. It will (I guess) be much cheaper for him to extend his insurance, rather than for you to start new insurance. It also means that you're not stuck with 12 months minimum insurance when you get bored after two weeks.
You also want to be sure that he has suitable employee liability insurance. Just because it's 'for a mate' and 'for a bit of fun' doesn't mean that it can't all go horribly wrong.
Dodgy bloke brings in stolen bike with fatal flaw. You ride it home and cause an accident because of flaw in bike. Then police turn up and accuse you of handling stolen goods. Make sure you have a sensible contract. That sort of thing tests the best of friendships.
And I must add make sure you end up on his payroll with NI and tax paid :)
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cheddar
Watch out for a small-print exclusion that voids your personal insurance "for any use in connection with the motor trade."
As said; get your friend to extend his traders policy to cover you for road risks and to add liability cover for vehicles in the hands of a sub-contractor.
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Another solution would be to get a tow hitch fitted, and your mate buys a specialist bike trailer, which he can then use as well. You'd then need cover for using the car for business purposes of course, but you could then offer a collection service etc.
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but you could then offer a collection service etc.
More fun riding the bikes, also I reckon I could get over there to pick up one bike and then simply pick up another when I take each one back, if any more need to come over or be picked up he has a van.
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>>And I must add make sure you end up on his payroll with NI and tax paid :)>>
Noooooooooo, I note the :) though just to say I have my own businesss, am VAT registered, I would simply invoice him for services rendered, parts and consumables and claim input tax on goods purchased, oil, polish etc etc, could be handy!
Watch out for a small-print exclusion that voids your personal insurance "for any use in connection with the motor trade."
Good point!
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>>Noooooooooo, I note the :)
Fine. But if you want to be sure, you might (just) want to have a read of the HMRC booklet 'employed or self employed'. From the facts we have, it isn't necessarily obvious to me one way or the other.
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Sorry to double post, but if you're NOT an employee then you might want to think more carefully about the insurance. You may find it easier to BE on his payroll.
I wouldn't bet that he can get cover to extend to cover bikes when in the hands of a subcontractor - you.
I don't know what your own PL/E'er liability insurance covers, but it might not cover you if your wife/sister/cat/whatever walked into your garage and was crushed by a bike you were working on. Or indeed if you were crushed by the bike.
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You may also have problems if the bike, or your working on it, causes say a fire in your garage. The bikes also need to be covered for theft and damage while on your premises.
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We use the services of a lady to do viewings on an occasional basis of property we are selling and she is paid on an ad hoc basis. I check about employers liability insurance with my broker and he advised that she was covered as she was working to our instructions.
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>she is covered by our employers liability insurance
But then you have e'ees and thus e'er's liability insurance. Cheddar's mate may not.
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