Who Might Need A Motor Trade Insurance Policy?
If you run a motor trade business you will need to take out a Motor Trade insurance policy to make sure you are properly covered.
Motor trade insurance probably covers more than you think it would. Without knowing the ins and outs, it would be hard to know just what you can and can't be covered for. We have put together some information below that will help point you in the right direction.
Should I Have Motor Trade Insurance?
If you run a motor trade related business and you do not have at least a basic level of motor trade insurance cover in place, then you could be breaking the law. When working within the vehicle industry it is essential that you do not undervalue the importance of getting the right motor trade insurance policy. Make sure that it covers everything you need to keep your business trading should the worst happen. As such, it is worth making sure that you understand what motor trade insurance is, what it covers, and all the options available to you, so that you can get exactly what you need from it - appropriate cover and peace of mind.
Who Needs Motor Trade Insurance?
In order to take out a motor trade insurance policy you must be working in an occupation within the motor trade and be able to meet specific criteria and restrictions. A motor trader can be a car salesman, motor mechanic, valeter, and car jockey just to name a few. It can also include garage owners, MOT mechanics, body shop owners, tyre and exhaust fitters, and vehicle recovery agents too. Unfortunately however, there are UK businesses out there that need motor trade insurance but currently operate without it because they are unaware of the requirements. Running a business without the right form of insurance can be extremely detrimental, especially if the worst were to happen and a claim has to be made. Some people do not realise that a motor trade insurance policy can extend to other forms of occupation, such as car electricians, car paint sprayers, car sign makers and many more.
What Will Motor Trade Insurance Cover?
When it comes to purchasing your motor trade insurance policy there are 3 levels of cover including Third Party Only, Third Party, Fire & Theft, and Comprehensive cover. You need to select the one most relevant for your business. You can choose to add a variety of additional covers to your policy including demonstration cover to allow customers to test drive your vehicles, split indemnity or carriage of vehicles cover to protect any cars whilst you’re collecting or delivering them. Whether you’re a full time or part-time trader, working from your home or from specified premises, you’ll need to make sure you have the right cover to protect your stock, your tools, your equipment and your employees. You could choose a basic level of cover to protect and drive your customer’s vehicles, or you could go to the other end of the scale and cover your premises and work undertaken too. One of the most important factors to remember with a motor trade insurance policy is that you can get most (if not all) of the benefits regardless of whether you work full or part-time.
Don’t Forget…Public Liability & Employers’ Liability Insurance
If you have any employees, from a garage full of mechanics to a part-time bookkeeper, then the law requires you to have Employers’ Liability in place for their protection – just in case anything should happen whilst carrying out their work. What’s more, if you get caught without Employers’ Liability in place, you could face huge fines which could even be backdated and could threaten the future of your business. Don’t take the risk…get yourself and your business covered!
Do I Need Proof That I Run A Motor Trade Business?
It doesn’t matter if you are a full-time or part-time motor trader, insurers may look for proof of trading from you to show you run a legitimate business, in order to continue with, or take out a new motor trade insurance policy. This will normally come in the form of invoices for your services or vehicles sold, but can also include copies of receipts for stock or services you have purchased as part of running your business. In the past, insurers have been caught out by people trying to pose as motor traders and dupe the system to benefit from cheaper insurance, or even get cover when they otherwise might not be able to. For example, someone looking to insure a high performance car might find it difficult / impossible to insure on a conventional car insurance policy, and so try to cheat the system by taking out a motor trade policy instead, even though they have no link to the motor trade. Insurers are now wise to this and may cancel any policy they suspect of being involved in this. In some cases they may also see your actions as fraud which could then become a criminal matter.
Specialist Motor Trade Insurance Quotes
Here at Think Insurance, we urge you to never undervalue your business. Always do your research before purchasing a policy and find out what options are available to you, and most suitable for your business, rather than cutting corners and taking risks. If you are still unsure as to what your business needs then feel free to give us a call or get in touch. Likewise if you would like a quote, just give us a call or click on the Get a Quote button now, and one of our expert team will be happy to help you out.