Tyres are the only part of a vehicle in contact with the road, and incorrect fitting or specification can have fatal consequences. For tyre dealers and fitters, this creates a professional liability exposure that is unusual in its severity relative to the apparent simplicity of the work. A single claim arising from a wheel separation or blowout linked to your fitting — with resulting serious injury — can cost hundreds of thousands of dollars. Appropriate insurance isn't optional.
Product Liability vs. Professional Indemnity: Know the Difference
Tyre businesses face two distinct liability categories:
Product liability responds when the product itself causes harm — if a tyre you sold has a manufacturing defect, or if you sold a tyre of the wrong specification for the vehicle application. As the retailer, you're part of the product liability chain even if the defect originated with the manufacturer.
Professional indemnity responds when your workmanship or advice causes harm — undertorquing wheel nuts, fitting a tyre to a damaged rim, specifying the wrong load rating, or incorrectly advising on tyre pressure. These are professional errors, not product defects.
You need both — neither replaces the other.
The Wheel Nut Risk
Wheel nut undertorque is one of the most well-documented failure modes in tyre fitting. A wheel separating from a vehicle at highway speed creates a catastrophic liability scenario — for the vehicle's occupants and for any other road users struck by the detached wheel.
Claims of this nature regularly result in serious personal injury or fatality. The resulting liability claim — personal injury, loss of income, pain and suffering, legal costs — can reach seven figures. This is why professional indemnity with adequate limits is essential for every tyre fitting business, regardless of size.
Documented torque procedures are the industry's standard defence. Electronic torque verification systems and torque check cards reduce both the frequency of claims and strengthen your position if a claim does arise.
Public and Product Liability: The Foundation
Public liability covers:
Product liability covers:
Standard coverage: $2 million minimum; $5–10 million is advisable for multi-bay retail operations or mobile fitters serving commercial accounts.
Customer Vehicles Cover
Alloy wheel damage during fitting is one of the most common tyre fitting claims. Tyre machine jaws making contact with alloy surfaces, valve stem damage, and TPMS sensor breakage are all customer property damage events. Customer vehicles cover (bailee's liability) protects you for this exposure.
Ensure your sum insured reflects the range of vehicles you service. If you fit tyres on prestige, modified, or commercial vehicles, the values can be significantly higher than standard passenger cars.
Road Risk
If you drive customer vehicles — to reposition them for access, or for any other reason — you need road risk cover. Your personal motor insurance doesn't extend to driving customer vehicles for business purposes.
Mobile Tyre Fitting: A Different Structure
Mobile tyre fitting operations require a different insurance setup:
Ensure your policy wording doesn't restrict liability coverage to a specific business address.
How Much Does Tyre Dealer Insurance Cost?
A specialist motor trade broker can access markets that understand tyre fitting operations and structure a policy that addresses your specific exposures.