Who is responsible for customer caravans / motorhomes?

Feb 2, 2011

Article by David Pickles, Dealer Guard Account Executive

One of the most regularly discussed subjects that I have experienced is the question of who is responsible for customer’s caravans or motorhomes whilst they are with a dealer for service, repair or sale. In this article I hope to clear up some of the misunderstanding in this area.

Customers should in the first instance have their own insurance cover for the unit and the fact that it is temporarily with you for whatever reason does not mean that it suddenly becomes your responsibility to insure it. 

However it is important that you have adequate cover for those circumstances where you may be responsible, for example where you have been deemed to have been negligent in some way, causing damage or loss to the unit. 

To foster good relations with your customers clarification of the situation is important before the event takes place so that you have evidence to support your position in the unfortunate event of a loss occurring. 

As well as making your position clear, we recommend that you advise your customers to check with their insurers before bringing their unit to you, to make sure it is still insured whilst it is in your possession. 

This is because we are aware of differing attitudes of insurers towards customers units whilst in your possession and we are also aware of losses that have occurred which subsequently have proved to be uninsured because the particular retail insurer concerned specifically excluded any loss at a dealership and we would want to avoid this happening to you and your customer.

Discussions by the customer with their insurer prior to the event may result in a temporary amendment to suit the customer but this would not be possible if the discussion is after a loss has occurred.

Individual retail insurers have the right to set the extent of their cover and we know that there are specialist retail insurers who for example class a dealership as a storage compound and have more restrictive terms for cover at storage compounds and we also are aware that some exclude cover when a unit is being sold on a sale or return/brokerage basis. 

Points worth considering when looking at your own business cover are;

• Dealer Guard can cover customers units whilst with you, subject to your approval, but bear in mind that the value will be trade price related. This is particularly relevant to Sale Or Return deals.

• Our sister company, Caravan Guard, don’t apply the usual wheel clamp and hitch lock requirements whilst a caravan is in a secure dealer’s compound.

As with all circumstances involving insurance cover it is important to check before rather than after the event and we are always happy to discuss your cover at any time. We also have specimen letters for you to use with your customers and would be happy to email you by return on request.

For further information on any of the points raised above, please don't hesitate in contacting David on david.pickles@wilbyltd.co.uk