Traders insurance was created to protect a variety of motor trade businesses against risks associated with driving vehicles owned by the business on the road. The types of business using this kind of insurance range from second-hand or new car dealerships through to motor mechanics and breakdown companies. The insurance cover offered is known as road risks insurance and it also provides protection for interactions with the general public.
Assessing your needs for motor trade insurance
Motor trade insurance may just entail road risks coverage, but associated cover for premises, stock and tools can also be included. Any business provider who takes on the responsibility for vehicles belonging to other people will need to take out motor trade insurance, as even if customer coverage is available it will only extend to third party at the very most.
Who is it suitable for?
Motor trade insurance is suitable for motor traders who operate on a full-time or part-time basis and is not suitable for individual drivers. The very minimum road risks policy to comply with legal requirements should include third party cover which will give injury, damage or loss cover to third parties and covers company-owned vehicles and customer-owned vehicles driven on public highways. This type of cover will be effective for any passengers in vehicles but will not cover the driver or vehicle. Third party, fire and theft cover gives added peace of mind, in the event of fire or theft while vehicles are on the business premises or being driven on public highways. Comprehensive cover provides all the benefits already highlighted and will also cover customer or business-owned vehicles and staff while they are driving on public highways.
Are there tailor-made solutions?
It’s possible to tailor motor trade insurance to meet business needs more appropriately. Vehicle exclusions can be put in place to exclude certain types of vehicle from the policy. Adding traders combined insurance to the policy will give cover for loss or damage to vehicles kept at the business premises. If you sell new vehicles you may wish to add in vehicle values coverage to ensure any claims for vehicle damages are paid at above trade values.
Find out more about motor trade insurance on our Compare Motor Trade Insurance page or call us for further details.