Types of Motor Trade Insurance
Are you new to the motor trade and want to know what insurance you need? Or have you been involved in the trade for years but are still confused by the many types of motor trade insurance available?
Fear not – our simple guide explains the main types of cover available and what they offer you.
Road Risks Insurance
Road risks cover provides you with insurance to drive vehicles you own, or that have been trusted to your custody and control by your customers, in connection with your motor trade business.
There are three levels of cover:
- Third-party only – the minimum legal requirement, covering damage to another person or their vehicle/property if you are involved in an accident with your vehicle.
- Third-party, fire and theft – in addition to third-party cover, you are also covered for theft or fire damage of your vehicle.
- Comprehensive – in addition to third-party, fire and theft cover, this covers damage to you and your vehicle, including cover where no other vehicle is involved (e.g. reversing into a post in a car park).
Liability Insurance
The last thing you need is to suffer a claim for damages in relation to work you have carried out. Liability insurance is designed to protect you.
Covers available include:
- Employers’ liability and public liability – a must if you employ anybody (a legal requirement) or if you encounter members of the public as part of your work (optional but recommended). They are designed to cover you against claims for damages sustained by employees or members of the public in connection with your business.
- Product liability – in case of incidents or accidents relating to the fitting of faulty products to a vehicle, product liability cover can help to protect you.
- Management liability – also known as Directors’ and Officers’ (D&O) insurance, this covers you personally as a director or senior manager of a business for claims made against you in relation to your work.
Traders Combined
This combines road risks insurance with a range of other covers in one policy. Hence the term ‘traders combined insurance’.
- Buildings cover – if you own or lease business premises, you will need cover for them. Check that your landlord has the right cover if you lease the building; if not, speak to us.
- Contents cover – available for everything from computers to tools and equipment, machinery, personal possessions, money and more. Speak to us about anything you wish to protect for your business, and we’ll see if we can include it in your traders combined policy.
- Vehicle stock cover – cover for your stock of vehicles. Speak to one of our expert motor trade insurance staff if you are unsure what limit of indemnity (in other words, the total amount of cover) you require.
- Engineering inspection – ensuring your equipment (such as ramps and hydraulic platforms) is certified as safe to use
These are the main types of cover for motor traders. There are many others available, too.
For further information and advice, contact us on 01625 854458 for road risks insurance, or 01625 854443 for traders combined insurance queries.
