As a business owner in the motor trade, it’s important to make sure you have the right insurance in place. Motor trade insurance is designed to protect businesses that buy, sell, repair or service vehicles.
There are a few key features to look for when shopping for motor trade insurance and, in this guide, we’ll take a close look at why you should consider them as part of your motor trade insurance.
Can anyone get traders insurance?
The short answer is no. In order to be eligible for motor trade insurance, you must hold a valid motor trade licence. This is issued by the Motor Trade Association (MTA) and shows that you’re qualified to work in the motor trade industry.
Motor trade insurance can cover a range of different risks, including:
- Damage to customer vehicles
- Theft of customer vehicles
- Public liability
- Employer’s liability
- Tools and equipment
- Stock
Key Features of Motor Trade Insurance
There are a number of optional features you can include as part of your motor trade insurance policy. Of course, you don’t want your cover to cost the earth, but, equally, the last thing you want is to have a claim made against you which you don’t have cover for. Consider the following features:
Motor trade liability insurance
Any business that deals with customers’ vehicles must have valid liability insurance in place. This is to protect both the customer and the business in the event of an accident. Motor trade liability insurance covers you for any damage or loss that may occur to a customer’s vehicle, as well as any legal costs and compensation payments that may be awarded.
Employer’s liability insurance
All businesses that employ staff must have valid employer’s liability insurance in place. This is to protect employees in the event of an accident at work. Employer’s liability insurance covers you for any injuries or fatalities that may occur, as well as any legal costs and compensation payments that may be awarded.
Breakdown cover
Breakdown cover is a must-have for any business that relies on vehicles. It ensures that you’re covered for any mechanical or electrical faults that may occur, as well as any necessary repairs or replacements. Motor trade breakdown cover typically includes roadside assistance, recovery and transportation.
Business interruption cover
Business interruption cover is a vital insurance for any business. It provides you with protection against any losses that may occur as a result of an unforeseen event, such as a fire or flood. This cover can help to keep your business up and running while you get back on your feet.
What age can you get motor trade insurance?
There is no definitive answer to this question as it will depend on the insurer you choose. However, most insurers will not offer cover to anyone under the age of 18.
What is a road risk policy?
A road risk policy is the most basic level of motor trade insurance and covers you for any damage or loss caused to customers’ vehicles while they’re in your care, custody or control. This includes damage caused by you or your employees, as well as any accidents that occur while the vehicle is being driven on a public road.
You can also look at an all risk policy. An all risks policy is the most comprehensive level of motor trade insurance and covers you for damage or loss to customers’ vehicles regardless of where it takes place. This includes damage caused by you or your employees, as well as any accidents that occur while the vehicle is being driven on a public road. All risks policies also cover theft, fire and malicious damage.
What kind of businesses need a road risk policy?
Road risk policies are most commonly used by businesses that deal with customer vehicles, such as garages, car dealerships and repair shops. However, businesses that store or use customer vehicles for any other purpose, such as delivery or transportation, may also need a road risk policy.
Can I drive a car that’s on trade insurance?
The short answer is no. Motor trade insurance is designed for businesses that buy, sell, repair or service vehicles. If you’re caught driving a car that’s on trade insurance, you could be liable for any damage or loss that occurs. This is because motor trade insurance is typically designed to cover you for damage or loss that occurs while the vehicle is in your care, custody or control.
If you only use your car for personal reasons and it’s not used in connection with your motor trade business, then you don’t need motor trade insurance. However, it’s important to note that your car will not be covered for any damage or loss that may occur while it’s in the care, custody or control of your motor trade business.
Should I choose comprehensive or third party cover?
This is a question that only you can answer. Comprehensive cover will provide you with protection against any damage or loss to customers’ vehicles , as well as any damage or loss that may occur to your own vehicle. Third party cover, on the other hand, will only provide protection against damage or loss that may occur to customers’ vehicles.
Choosing the right level of cover will depend on your individual business needs. However, most businesses will require a minimum level of cover of £50,000.
If you’re looking for a competitive quote for your motor trade insurance, look no further than QuoteSearcher. With a dedicated panel of motor trade insurance brokers at hand, just one simple form puts you in touch. With specialist brokers waiting to create bespoke policies that work in line with your business needs, why wait?