What is Motor Trade Insurance?
Motor trade insurance protects those that drive company vehicles or customer vehicles in connection with their business. This insurance will give protection from claims that arise from loss, accidents or damages.
Coverage is provided for the time needed to move, work on, or transport vehicles to and from a location. Motor trade insurance requirements differ from company to company and will need to be tailored to meet individual needs. It covers people working in the automotive industry that run a business, deals in the sale or trading of vehicles, or work in any of the following occupations:
- Car dealer or trader
- Tyre shop
- Vehicle recovery agent
- Car repair and body shop
- Vehicle trader
- Mechanic (shops and mobile)
- MOT centre
Coverage for operating vehicles may protect the business owner, everyone who works for the company or apply to specific team members. For companies associated with the motor trade that do not drive customer vehicles, some type of motor trade coverage will still be required to protect against other incidents that can happen, like damage or theft.
What does motor trade insurance cover?
Working in the motor trade can mean you may need insurance to operate vehicles and cover things like expensive equipment, tools, and vehicle parts used for repairs. In addition, some policies can extend to protecting employees of the company and the work that they perform from liability. Motor trade insurance policies usually contain three types of coverage.
Liability motor trade insurance covers traders that supply and service vehicles, employ staff, and have customers on the premises. Types of liability insurance can include public liability, employer liability, product, sales, and service indemnity cover.
Product sales and service indemnity protect from claims that arise from the use of faulty or defective parts or issues caused by poor workmanship.
Road risk insurance covers business types that drive their own or customer vehicles on public roads and provide general repair services. This includes business types that buy and sell cars or offer valet or mechanical services such as a fitter or tuner.
Combined motor trade insurance is an extended policy that covers any and all risks associated with vehicle repair, transportation, and protection of premises, contents, and equipment.
Do I need motor trade insurance?
If you operate in any motor trade profession where you work on, perform repairs, and move or transport customer vehicles, you will need to have a motor trade insurance policy. The law requires that such insurance is obtained for these kinds of businesses; however, the law also states that a policy can be chosen that allows the business to operate at the minimum of risk.
This means that depending on the type of auto business you operate, you may be able to obtain coverage that includes road risk cover only to protect you and your employees while driving cars and customer vehicles that you do not own. The type of business activities being performed may require some special additions to a standard road risk policy.
Additions can include things like coverage for vehicle demonstration or test-driving. Motorcycles may need to be added, and windscreen protection will cover any damage to the window glass. Vehicles in transit or trailer coverage will need to be included for vehicles being moved to different locations and to protect any trailers while they are detached from an insured vehicle.
Premises cover frequently added to protect vehicles left at a place of business for repairs or maintenance. This insurance will also cover damage and theft claims for stock vehicles and personal vehicles that are left on the premises.
How to get motor trade insurance
Getting a motor trade insurance policy can be complicated, so it may be best to seek professional help to ensure you have the coverage you need. Policy premiums are affected by business type, the number of employees, the age of drivers, and many other factors. Things like the area you live in or the kind of vehicles you will be driving can also increase premiums.
Companies dealing with high-value or vintage vehicles can expect the costs of a policy to be more expensive. Each motor trade policy is different, so along with the pricing and cost of excess, be sure to check any conditions or exclusions that may apply to your business. Some typical exclusions are coverage for cash on the premises and wear and tear of tools, so make sure you are getting a policy that works for your company.
A comparison search engine can help you to find the best motor trade insurance policy. Enter your information and view policies or be connected to a range of insurers to compare side-by-side quotes and find the best possible deal for your business.