Specialist consumer and business insurer Yellow Jersey has recorded what it says is a “dramatic increase” in mobile and work from home start ups enquiring about its mechanic insurance products through May and June.
“We’ve had the same number of leads in June as Jan-May 2020 combined. Lots of people that we reached out to in 2019 are resurfacing now,” Yellow Jersey Operations and Product Manager Tom McMorrin told CI.N.
A steady tide of mechanic start ups has been an evident trend since the Covid-19 crisis began, with numerous accounts passed to CI.N of those suddenly furloughed or out of a job opting to go it alone; and very often finding themselves immediately booked up.
The increase in demand for mechanic insurance policies appears to have been further fuelled by the Government’s £50 bike repair voucher scheme, for which mechanics and bike shops can now register.
“Our enquiries, particularly for mobile / work from home mechanics increased dramatically in late May & June,” said McMorrin. “Interest from bicycle shops is also increasing, however as shops are more established and their insurance requirements are cyclical, the spike is less dramatic. It’s easier to set up a mobile repair from a van or garage than set up a new shop.”
Businesses looking to cover themselves with Yellow Jersey can view the range of trade policies here. These start from just £150 and are all aligned to cover a mechanic participating in the Government’s Fix Your Bike Scheme.
“To obtain an insurance policy from our panel of insurers, you don’t require a qualification certificate (this isn’t a YJ specific thing, rather just the industry standard). I’m not aware of an insurer for cycle repairs that requires proof of professional qualifications,” added McMorrin, who himself had conversations with the DfT about what’s required of mechanics in the lead up to the repair scheme’s debut.
The Government’s scheme does, however, require some form of accreditation, or proof of capability to participate. Release of the vouchers is likely to be staggered in order to help the trade manage workflow and to assist in vetting applications.