If you’re in the motor trade, it’s important to make sure you have the right insurance in place. There are a variety of different types of cover available, and each one is designed to protect you in a specific way. So what do you need to know about motor trade insurance? Read on for our UK broker guide to understand the ins and outs.
Varying Cover Options
The first thing to understand is that there is no such thing as a standard motor trade insurance policy. Insurance requirements will vary depending on the type of business you run. For example, if you’re a car dealer, you’ll need a different cover than someone who runs a garage.
That’s why it’s so important to speak to an insurance broker who understands the motor trade. They will be able to assess your individual needs and find a policy that’s right for you.
The cover options available to motor traders include:
- Road risk insurance: This is the most basic level of motor trade insurance. It covers you for any damage or injuries caused while you’re driving a customer’s vehicle.
- Premises insurance: If you have a physical motor trade premises, you’ll need to insure it against things like fire, theft, and vandalism.
- Business interruption insurance: This covers you for any financial losses caused by events beyond your control, such as bad weather or a power cut.
- Product liability insurance: If you sell products as part of your motor trade business, this will cover you if a customer is injured or their property is damaged as a result of using them.
- Employer’s liability insurance: This is a legal requirement if you have any staff working for you. It covers you for any injuries or illnesses they suffer while working for you.
Choosing the Right Policy
As we’ve mentioned, it’s vital to work with an insurance broker who understands the motor trade. They will be able to find a policy that meets your specific needs.
When choosing a motor trade insurance policy, there are a few things you need to take into account:
- The level of cover you need: As we’ve seen, there are different levels of motor trade insurance available. Make sure you choose a policy that gives you the right level of cover for your business.
- The type of cover you need: Again, there are different types of motor trade insurance available. Make sure you choose a policy that covers the risks associated with your business.
- The excess: This is the amount you have to pay towards any claims you make. It’s important to choose an excess you can afford to pay should you need to make a claim.
- The price: Of course, you’ll also need to consider the cost of the policy. Make sure you get a few quotes before you decide which policy to buy.
Different Types of Businesses to Consider
There are a variety of different types of motor trade businesses, and each one will have different insurance needs. Here are just some of the businesses you might need motor trade insurance for:
- Car dealerships.
- MOT stations.
- Car valeting businesses.
- Mobile mechanics.
- Breakdown services.
- Tyre fitting services.
Each of these should have you considering taking out a motor trader insurance policy, or at least consulting with a broker over the possibility. Have a look online and see how this type of insurance cover offered can fit your business. It is as much about peace of mind as financial protection when there can be enough stress involved in running a business.
As you can see, there is a lot to consider when it comes to motor trader insurance. But as long as you do your research and speak to an insurance broker, you’ll be able to find the right policy for your business. The UK broker will have much experience to offer, which can be online.