What is motor trade insurance?
Motor trade insurance is designed for businesses that work with or on cars. It ensures your staff are covered when driving or working with your vehicles or your customers’.
Insurers understand how varied the motor trade industry is, so the policy can be customised to protect your business against a wide spectrum of risks.
Do I need motor trade insurance?
Well, that depends on the type of business you run. The most common types of businesses in need of motor trade insurance are:
• Car Dealerships
• Mechanics
• Vehicle Recovery Services
• Scrap Yards
• Car-Valeting Services
• Companies who perform vehicle restoration
• Repossession companies
Essentially, if your vehicles or the vehicles of your customers come under the “care, custody and control” of your staff, you should consider motor trade insurance. If you are unsure of whether you require a motor trade policy get in touch with the team here at West Craven Insurance.
What covers does a motor trade insurance policy include?
Employers’ liability insurance – An essential policy for every business, employers liability insurance protects your business should a member of your staff make a claim against your business.
Extra drivers – An alternative to paying for fully comprehensive cover for every member of staff (which can be expensive), some businesses will choose to have a handful of named drivers.
Material damage covers – Cover for any vehicles or equipment you own. For example, if you run a recovery firm, your vehicles and equipment will be insured.
Product liability insurance – A workman is only as good as his tools – or in this case, the parts they install. Should you repair a vehicle with a defective part, product liability insurance will protect your business against a claim.
Public liability insurance – Another essential policy for any business, public liability insurance protects you, your staff and your business against claims made against you by a member of the public.
Road risk – If the running of your day to day business requires you and your staff to take vehicles on the road then you will need road risk cover. This type of cover is suited to businesses like mechanics who will need to road test a vehicle or car dealerships who need to deliver vehicles.
Vehicle types – A motor trade policy can be customised to only include the types of vehicles you work with. Rather than providing your staff with comprehensive cover, you can manage the types of vehicle each member of staff is covered to operate.
Combined motor trade insurance – Whilst you can pick and choose from all the above policies to tailor your policy to the unique risks your business faces, a combined motor trade policy takes elements from several policies to cover road risk, equipment, and even your premises.
This is sometimes a more cost-effective method of insuring your business and also allows you to manage one policy as opposed to three or four.