Do I Need to Run My Motor Trade Business From a Premises?
Where do you need to run your business from in order to get a Motor Trade insurance policy? See below for details.
Due to the diversity of the motor trade industry, most motor traders can set up shop petty much anywhere, and the location of a motor trade business doesn’t necessarily have to be a dedicated business premises. Many motor traders may share a business site with another type of motor trade business or even a non-motor trade related business, and other types of motor traders will operate from home – this can be a for a number of reasons.
For every different type of motor trader there is a type of Motor Trade insurance cover that suits them, and the needs of their business. There is cover to suit motor trade businesses that have multiple premises and cover for sole traders operating from their own home, and everything in between.
Motor Traders Working from Home
Not every motor trade business is big enough or profitable enough to operate from a dedicated business premises, and not every motor trader wants to operate from a dedicated premises. For motor traders working from their home it doesn’t make sense to find a business premises to work from, and this can be especially true for part-time motor traders, who may only operate on the side of working in another, full-time profession and therefore cannot afford the expense of a dedicated premises, nor have a reason to find one.
Indeed, many motor traders can operate just fine working from their home. Motor traders who primarily operate as mechanics, may have a big enough garage on their property to undertake work on client vehicles and space on their driveway to store cars. A vehicle seller may only require a small plot of land, which could already be part of their home, to operate – therefore operating from a business premises could be a waste of money that could be better spent in marketing and advertising.
Make Sure Your Home Is Suitable to Work from as a Motor Trader
If you’re looking into becoming a motor trader, especially a trader that operates from home, one of the main things you should be considering is whether your home could feasibly double as a base for your motor trade operation. For example, if you intend to be a vehicle seller or expect to have several cars in your possession at any one time then you will need a safe place to store them.
Vehicle sellers, or any other type of motor trader, that store vehicles in their possession on the streets surrounding their homes may find it difficult to get a Motor Trade insurance policy, or at the very least find it difficult to get a policy at a price they’re happy with. Some traders try and get around this higher cost by lying to their insurance company about where they store the vehicles in their possession. Most, if not all, traders who do this are found out and end up having their insurance either cancelled or voided – with any ongoing claims not paid out.
Mobile Motor Traders
Motor Traders who operate a mobile service, such as valeters and mechanics, may have no use for an office or dedicated motor trade premises. As a mobile mechanic or a mobile valeter you will therefore only need insurance that covers the exact specifics of your motor trade activities, such as Public Liability cover and Product Liability cover.
Does Your Home Insurance Allow You to Operate from Home?
As a motor trader that operates from their home you’ll need to make sure that your Home insurance still covers you, not for motor trade activities but the ability to operate a business from your home – and you are required to let your insurer know. For example, if your home or property is broken into and tools related to your motor trade business are stolen, the tools may be covered under your Motor Trade insurance policy and damage to the property may be covered by your Home insurance provider, however if you haven’t informed your Home insurance provider that you run your business from your home, then you may find that they reject any claim for the damage caused to the home. Before a situation like this occurs it’s always worth making sure which insurance provider covers you for what, and always tell them your true set-up, and don’t withhold the fact you work from home.
Working from a Fixed Premises
As a motor trader working from their own fixed premises, you would benefit from taking out a Motor Trade Combined policy. Whilst most Combined Motor Trade insurance policies differ for different types of motor trade businesses and their needs, a general Combined policy usually includes cover for the building and contents – which can include machinery, tools and any other equipment used by your motor trade business.
Get a Bespoke Motor Trade Insurance Policy
Whatever type of motor trader you are, whether you are a valeter, mechanic, or vehicle seller, and whether you operate from a dedicated motor trade premises or from your home, it’s important you have the right cover.
At Think Insurance we have a team of highly-trained Motor Trade insurance specialists who can help you design a bespoke Motor Trade insurance policy that fits your business perfectly, ensuring you have the right motor trade cover for every aspect of your business.
Our Motor Trade insurance policies are flexible and can be changed when your business changes, although if you are planning a location change please call us first so that you’re aware of any changes to the cost, good or bad, of your Motor Trade insurance premium. We can also help part-time motor traders who are looking to start operating full-time and need their Motor Trade cover to reflect that.
So, if you’re a motor trader that operates or wants to operate from home, or if you have a dedicated premises and would like to discuss how we can help get you the right insurance for your motor trade business, call us on 0800 221 8077.
Alternatively, if you already know exactly what type of cover your motor trade business needs then click ‘Get a Quote’ below and we’ll be in touch to discuss a Motor Trade insurance policy with you!