When you own a motor trade business, it is vital to be adequately insured against risks such as theft or damage. Motoring trade insurance offers key protection for your business, whether you fit accessories, carry out mechanical repair work, valet cars, or sell them. This specialist insurance is broken down into road risks insurance and liabilities insurance.
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About road risks insurance
This is the core part of any motor trade insurance. For some businesses – smaller operations or those that operate on a part-time basis – it can be sufficient on its own. It provides the level of insurance cover that is required by law for anyone who drives a car. However, this type of insurance is restricted o the use of trading purposes and is only applicable to the driver named under the policy.
This type of insurance offers a blanket level of insurance for any vehicle that the named individual drives for the purposes of trade. It can also cover third-party, fire and theft risks as you wish, with options to add comprehensive cover. The cover can also be extended for test drives if you sell cars to customers and offer this feature.
Liability insurance
There are various situations in which a motor trade business can be held financially liable for a customer’s loss – both physical and financial – even if they are a small business and only work part-time or occasionally. Compensation costs can be quite heavy in the event of a customer court win, so public liability insurance is usually built into insurance packages for the motor trade. Learn more at sites like quotemetoday.co.uk/motor-trade-insurance
This provides indemnity against any claims that are successfully made by your customers, along with any neighbours or members of the public who could sustain an injury to themselves or their property as a result of your business operation.
Typically, this level of cover is at least £1 million in value. However, if you employ staff at your business, you must ensure that your employer liability insurance is at least worth £5 million, which is in line with the law.
Last but not least, it is also possible to incorporate insurance cover for your specialist tools and equipment to further safeguard your business and the customers who use it.