Motor trade insurance is a type of insurance that covers businesses that are involved primarily in trading and repairing vehicles. Such a policy will cover motor traders against ‘third party’ risks such as vandalism, theft, or accidental damage on their premises. It can also cover motor traders against legal liability they may incur while operating within their business activities.
It is easy to get a motor trade insurance policy when they are available online. Some of the same questions as with motor insurance will be asked, but they will be more specifically geared to occupation and the kind of business you run. The location of the activities will be important too in terms of the risk.
The types of cover include:
Motor trade insurance
The types of businesses covered by motor trade insurance include those that have forecourts and showrooms that they sell vehicles from, those with garages involved in the repair of vehicles in terms of servicing and MOTs, and others that offer cleaning services for cars. All of these occupations will want to be able to work on and drive the vehicles of others and be protected by insurance.
Car salespersons will want to be able to move vehicles around in the name of improving displays of cars for sale. Mechanics will have a requirement to pick up and return cars to customers as part of the service they offer, as well as be insured while working on the vehicle. Many garages offer valet or car washing services and will wish to be covered for them. Also, a business may solely do this and want motor trade insurance for everyone’s protection.
Motor trade insurance is about protecting someone in terms of the harm they may accidentally cause to another’s vehicle while it is in their care. This can be during the day while they are working on it or while stored overnight at their premises ready to be worked on the next day.
Road risks insurance
Road risk insurance is a type of motor trade insurance that covers the business in case an accident occurs while the vehicle is being used for business purposes. This type of policy can also provide coverage for damage to the vehicle, as well as liability in case of an accident.
It is a legal requirement to have third-party road cover but a motor trader will want to extend coverage to a more comprehensive-like cover where the vehicle they are driving, that of the customer, is covered just like the other vehicle involved in the accident. It is financial protection to have the customer’s car also covered by insurance.
Employer’s liability insurance
Employer’s liability insurance is a type of insurance that covers businesses if an employee is injured or becomes ill as a result of their job. This type of insurance can help protect the business from costly lawsuits.
It is required by law that businesses have employer’s liability insurance and so is the reason why it is included with motor trade insurance.
Public liability insurance
Public liability insurance is an important part of motor trade insurance too. It covers businesses for any accidents or injuries that occur on their property. This can help protect the business from any legal costs or damages that may arise as a result of an accident that happens to a member of the public.
Motor trade insurance will take account of all a motor trader’s needs so that they are fully always protected within their business. It is important for those working in the motor trade that they have the right kind of insurance. A motor trade policy has been specifically designed with these occupations in mind.