The importance of having the correct motor trade insurance
Having the correct motor trade insurance is vital to protect your business, employees, customers and any vehicles that are left in your care. Whether you have an MOT garage, repair workshop or car showroom, have coverage tailored to your business practices. Failing to do so could cause your business to breach regulatory or statutory obligations, violate lender requirements, or commit a motoring offense.
What are the different types of insurance for motor traders?
There are a number of risks that come with operating a business in the motor trade industry. From injured employees to damaged vehicles, it’s important that you have the correct coverage for each of these scenarios.
Road Risk Insurance
Road risk insurance was designed specifically for motor traders who need to drive vehicles owned, in their custody or control. Cover can include vehicle demonstrations, customer test drives and courtesy vehicles. This type of insurance is considered the minimum amount of coverage that motor traders require, and is often recommended for small businesses.
Public Liability Insurance
Public liability insurance can protect your business from customer claims. Should a customer slip and fall at your premises, public liability insurance will cover the cost of compensation you are required to pay. Whether you own an MOT garage or a car repair workshop, public liability insurance can provide your business with that extra level of coverage.
Employer’s Liability Insurance
Employer’s liability insurance is a legal statutory requirement for all motor trade businesses. In the event that an employee is injured at work, employer’s liability insurance will cover the legal expenses and compensation cost. Whether the incident happens on-site or off-site, this type of insurance will protect your motor trade business from employee claims.
Product Liability Insurance
Product liability insurance will protect your business from any damages caused by a defective product. In the event that a product you fit to a customer’s vehicle is faulty, product liability insurance is designed to cover the costs involved with handling the customer’s claim and suing the product manufacturers.
Servicing Indemnity Insurance
Servicing indemnity insurance is often considered an extension of public and product liability insurance. If an incident was to occur after you have carried out work on a customer’s vehicle, your company could be liable to a negligence claim for a failure to perform. However, servicing indemnity insurance is designed to cover any claims of damage or injury once the vehicle has left your premises.
Combined Motor Trade Insurance
Combined motor trade insurance is a combination of insurance policies, designed to protect all areas of your motor trade business. With public liability, servicing indemnity, employer’s liability, road risk cover, premises cover and contents cover, combined motor trade insurance guarantees that your business is fully protected in the event of an accident. This type of insurance is the most comprehensive form of coverage and is considered a necessity for large motor trade businesses.
