Motor trade policies are typically tailored to a business’s specific requirements, so it’s worth thinking about what kind of risks and activities you actually want to be insured: this means that you won’t get a shock when a claim is rejected as uninsured, and also that you’re not paying for cover you don’t actually need.
At BGi.uk we can assist you and offer peace of mind insurance to those in the Motor Trade for the following selection of occupations, but certainly not limited to:
- Sales people
- MOT Centres
- Exhaust Centres
Who needs motor trade insurance?
As well as the business types mentioned above, you’re likely to need motor trade insurance if you operate a scrap yard, a car-valeting company, a vehicle-restoring business or a repossession company. In general, if your or your customers’ vehicles come under the ‘care, custody and control’ of your staff, you’ll need this type of cover in some form.
Bear in mind also that the requirement to have motor trade insurance doesn’t apply only to limited companies: if you’re self-employed but still have responsibility for other people’s vehicles, it’s vital to have the right policy in place.
In some cases, customers’ own policies may cover other drivers, albeit on a third-party rather than comprehensive basis. But while this has been a common feature of motor insurance in the past, it’s now much less likely to be the case. As such, it’s crucial that businesses in the motor trade organise their own form of cover.
What is motor trade insurance?
Motor trade insurance (or traders’ insurance) means that businesses and their staff are covered when driving or working on their customers’ vehicles or those that the company owns.
Often, the most important aspect of this kind of policy is its flexibility. For example, if you’re running a garage, it can be used for any member of staff, even new recruits, to drive any customer’s vehicle.
At the same time, the policy might protect that business against any accidental damage or other problems that result from mechanics working on a vehicle.
Even if your company doesn’t normally drive customers’ cars, for example if you run a mobile tyre-replacement service, you may need some form of trade cover.
- Public and/or Employers’ Liability only
- Road Risks – to provide cover to drive vehicles on the road and Fire, Theft and Accidental Damage
- Road Risks and Combined Premises – to include premises, stock, contents and equipment as well as Liabilities and Road Risks