What does a motor trade policy cover?
Motor trade insurance covers several different policies. These range from road risk only insurance to liability motor trade insurance. We cover the different policies, and anything else you’ll need to consider, in the section below.
Road risk only insurance
Road risk insurance covers you and your employees on public roads and properties when driving a vehicle for business purposes. You don’t need to own the vehicle, but it does need to be registered on the Motor Insurance Database (MID).
The law requires you to take out at least road risk third party cover, but there are three options to choose from:
Third party
If you’re worried about motor trade insurance costs, third party cover is the cheapest and most basic option. It covers injury, death, and damage caused by any vehicle connected to your business.
Third party theft and fire
An upgrade on the previous policy, this option covers any damage caused by your company to a third party vehicle, and covers your vehicle in the event of fire or theft.
Comprehensive (full cover)
The recommended option – fully comprehensive road risk insurance is designed to protect your business from all scenarios, including damage to the vehicle, fire, and theft. You can also use it to make a personal injury claim in the event of an accident.
Liability motor trade insurance
If you have employees and customers on premise, and either repair, supply, or service cars, then you’ll need to take out liability motor trade insurance. There are separate policies covering employee, public, product, and sales and services liability.
Employers’ liability insurance – protects your business against any claims made by your employees.
Public liability insurance – covers both you and your employees against claims made by customers and members of the public.
Product liability insurance – protects your business in the event of fitting a vehicle with a faulty product.
Sales and services indemnity insurance – covers you if you unintentionally sell a faulty vehicle, or if the work you or your employees carry out on a vehicle happens to cause problems
Combined motor trade insurance
Instead of taking out several insurance policies, you can take out one that covers you on a range of areas, including road risk, liability, and contents. This option is often cheaper than taking out seperate policies.
Just make sure that it covers all the things you need it to, and remember to take out any policies that your combined motor trade insurance doesn’t cover.
You may also need to consider that the policy covers…
Combined premises cover – Necessary if you run your motor business from a premises that isn’t your home.
Vehicle value payouts – Important if you happen to write off a vehicle while it’s registered under your business’ ownership.
Additional occupations – If you only work in the motor trade business part time, you may want to see if your policy covers you to use your vehicles for your other work, too.
Additional drivers – Make sure your insurance policy covers all of your staff. The cheapest option is to name individual drivers on the policy, but you can choose to insure all of your employees if you wish.
via https://www.AiUpNow.com/ by Aimee Bradshaw, Khareem Sudlow
