Motor trade insurance is a type of motor vehicle insurance that covers motor vehicles for third-party risks. This kind of coverage can be purchased as an add-on to business motor fleet insurance, or it can be purchased separately. But what does motor trade cover? What are the benefits of the motor trade for your business? In this article, you will get the answer to those questions and more!
What is motor trade insurance and what does it cover?
Motor trade insurance is a policy that can protect businesses in the motor trade industry. It is a package of insurance policies that cover specific risks and business exposures for motor traders, spare parts dealers, and repairers.
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What does motor trade insurance cover?
- Motor Trade Insurance covers the following things:
- Personal Accident including Death & Injury to Staff
- Public Liability Insurances; Employers’ Liability
- Buildings Insurance (Business Premises)
- Business Interruption including Contract Works Cover
- Stock in Trade/Stock on Consignment
Many companies have motor trade insurance in place to protect their business. Your motor trade insurance policy may be arranged by your insurer, or you might opt for a package deal with motor traders’ specialist brokers.
Motor Trade Insurance FAQs
There are some motor trade insurance FAQs. Also, you’ll probably still be interested after this article, and you can find out more here, where you’ll learn exactly what you need to get a policy. It is important to get motor trade insurance that suits you and your business, so it’s worth reading through these questions and answers for some guidance:
What requirements do you need to meet?
You will have a motor trader’s license with the DVLA which means you can purchase goods on hire-purchase or conditional sale agreements and sell them at profit. If you don’t hold this license but continue trading without disclosing your status, then you are committing an offense under S24 of the Hire Purchase Act (1964). Applicants must be more than 18 years old. If they’re less than 21 they need to write consent from their parents/guardians.
What type of motor trade insurance should you get?
Depending on your needs you could choose from a wide range of motor trade insurance including Bodily injury and property damage liability, employers’ liability protection for workers compensation, public liability cover to protect against claims made by members of the public who have been injured or suffered damage due to an accident at work. There are also specialist policies such as hire vehicle coverage, which covers cars that belong to employees while they’re driving them in connection with their job.
How much motor trade insurance should I get?
There are many factors that can affect the cost of motor trade insurance, but generally the smaller your business is and/or fewer vehicles you own, it will be cheaper per policy. The more customized a motor trade insurance policy gets with extras such as breakdown assistance and legal expenses cover or public liability claims made against you at higher levels than normal, meaning they’ll come out more expensive too.
When would you need it?
You need motor trade insurance when you are a motor trader. This means when your business is involved in buying and selling motor vehicles, whether they be new or used. In this case, the insurance policy will cover any items that need to be covered for whatever reason, which includes accidents, thefts, etcetera.
If you own a business like this, it’s a smart move to invest in motor trade insurance right away. This way, your business will be covered in case anything goes wrong, and you’ll be able to focus on running it without having to worry about covering any costs that may come up unexpectedly.
The benefits of motor trade insurance
There are a lot of benefits of motor trade insurance. If you’re an owner of a motor business, it is important to ensure that the vehicles are properly insured in order to reduce risks and protect your assets. Some of the benefits include:
- Coverage when your motor business is at risk of damage or theft.
- You can be protected against legal liabilities and claims, even if the accident was not your fault.
- You will also get coverage for commercial vehicle road risks such as accidental collisions with pedestrians, fire, explosion, contact with animals, liability resulting from the escape of dangerous substances into watercourses or on land, malicious acts by third parties (including vandalism), and many more!
It’s important to know that insurers may differ in their attitude towards certain activities like taxi driving. While some insurers classify it as a non-commercial activity, others consider it commercial driving, which means higher premiums. Make sure to read and understand the motor trade insurance policy before signing it.
Why should a business invest in it?
Firstly, motor trade insurance can help protect your business from financial loss that might occur due to a customer or client being involved in an accident while driving one of the cars you have insured. If this were to happen, not only would it cause you legal problems but also leave you financially out of pocket because the car that is damaged or written off will need to be replaced.
Secondly, motor trade insurance can help protect your business from financial loss that might occur due to a fire in your garage, which would cause all of the vehicles you have insured within it to be destroyed. This could potentially leave you out of pocket because not only would these cars need replacing, but also any tools and equipment used for working on them.
It’s important when investing in motor trade insurance to make sure you get adequate cover so that if anything does happen, then there won’t be any problems with making a claim against it. Your motor trade insurer should provide protection across three key areas: staff employed by your company, commercial premises including both indoor and outdoor property like furniture, motor vehicles, and stock, motor trade risks such as fire along with theft.
The risks that come with not having it
The risks of not having motor trade insurance as a business include not being covered for motor accidents and other incidents you could be held responsible for. This is especially important if your employees drive company vehicles or cars that are used in advertising campaigns. If they have an accident because of their negligence, the damage inflicted to the third party may not be compensated by them but will be down to you, the business owner.
Motor trade insurance is something you simply must have if you’re running a business that deals with these things. It covers a lot of things, and it’s beneficial for you, especially financially. Investing in a policy like this will make you sleep easier at night knowing that the damages will be significantly smaller if, God forbid, something wrong happens. Get it now and you won’t be sorry.
