Additions and Optional Extras for Motor Trade Policies
How you can enhance your Motor Trade insurance policy with add ons.
When you take out a Motor Trade insurance policy, as well as getting cover for the vehicles, there are a number of other policy additions and optional products that you may not necessarily be aware of, but could give you added protection and peace of mind.
Below we have given a brief description of a few popular, and in some cases necessary, additions and optional extras that many of the motor traders we cover choose to add to their Trade Car insurance policies.
This can be an extremely useful extension to your policy if you are a motor trader that sells cars. In fact, it’s so essential to a vehicle seller that it’s usually incorporated into a Vehicle Sales insurance policy. Having Demonstration cover added to your Motor Trade insurance policy means you can let potential buyers take the cars you have for sale out for a test drive, though most policies will require you to be present for the test drive – something you may already wish to do for security reasons.
Stock of Vehicles
For many traders, Stock of Vehicles cover is seen as a fairly vital type of cover if you/your motor trade business keeps your stock vehicles on your business premises. If you choose to go without cover and any damage or theft occurs to vehicles you stock then you will be left out of pocket. You can protect yourself against this nightmare scenario by getting the right level of cover added to your Motor Trade insurance from day one.
Carriage of Vehicles
Carriage of Vehicles cover is a more specific add-on that is only really needed if you are going to be transporting vehicles on the back of a truck or recovery vehicle. Whether you take vehicles to and from auctions, or offer a vehicle delivery service to your customers, taking this out will give you the right cover in the event of any damage occurring to the vehicle(s) whilst in transit.
Tools Cover for Motor Traders
For any business that regularly needs to use a variety of tools to carry out their day-to-day work, which as you may know in the motor trade industry is pretty much all of them, getting this added onto your policy is a must.
If your tools get stolen you are either going to have to fork out to replace them or you will be unable to work, neither of which is ideal and can pose a serious financial strain on both you and your motor trade business. With the right form of protection you can ensure that this is not a problem as you can quickly sort out replacements, safe in the knowledge that your policy covers them.
Liability Insurance for Motor Traders
Like many other traders and businesses in other industries, motor traders can benefit and further protect their business by taking out a variety of Liability insurance products. For some traders and motor trade businesses certain liability products may be a legal requirement.
Employers’ Liability – If you are motor trader with employees, whether it’s one or more, you will need to take Employers’ Liability insurance out - it’s the law! Whilst there are a few exceptions such as certain family members, it’s still worth adding Employers’ Liability insurance to your Motor Trade policy just in case, you never know what could happen in the future!
Public Liability – You may think because you operate from a forecourt that you might not need Public Liability insurance added to your Motor Trade policy, but think again. Accidents happen at every type of business, and having cover against potential claims could be the difference between your business going under and staying open.
Product Liability – If you or your motor trade business carries out work on customer vehicles and/or fits new parts then you should seriously consider adding Product Liability insurance to your Motor Trade insurance policy. This will cover you against defective parts or work you and your employees might carry out for a customer, if they result in damage to the vehicle.
Does My Motor Trade Business Really Need These Insurance Add Ons?
Not every motor trader and motor trade business will need or want to add on every possible Motor Trade insurance additional product, and that’s ok. Not every motor trader operates in the same way, and it’s important to fully assess your motor trade business so that you can find a policy that works for you.
For example, if you are purely a mechanics business then there is no need for you to take out Demonstration cover, however if you do move in to selling vehicles then you can update your policy later down the line to reflect that change in your insurance needs, by adding Stock of Vehicles cover in addition to Demonstration cover.
Ask Your Motor Trade Broker Today!
There are many other additions and variations that you can make to your Motor Trader insurance policy and if you are unsure exactly what type of cover you need, it is advisable to speak with a broker to get as much information as possible.
Think Insurance are one of the UK's leading specialist Motor Trade insurance brokers and are happy to help if you’re looking for more information or want a quote to see how much any of the above levels of cover could cost you. Click 'Get a Quote' below or call 0800 221 8077.