How does insurance for traders work?

Motor Trade Insurance is a vital component to any business within the motor trade industry. It is a policy required by traders, by law, if they wish to operate in the industry for profit.

Regardless of your activity, whether it be buying or selling cars, repairing, servicing or even valeting, a traders policy is required.

If you are new to the trade (or existing), here we explain a few key elements as to how it works and what is covered.

Road Risk Insurance

Road Risk Only Insurance works by covering your trade activity but not covering a premises. This is the most common policy of motor trade insurance. Purchased by many full and part time traders, it can be designed to cover those trading from home or from a rented premises. You can tailor it to cover tools as well as things such as professional and public liability.

Combined Traders Insurance

A combined policy is designed to cover a premises or garage as well. If you trade from home, then your home will be covered by your personal home insurance and as such, will only require and Road Risk Insurance. If you own a separate property and work from there, such as a dealership or repair garage, then a combined policy is more suitable to you. Again, this can be tailored to cover things such as public and professional indemnity. Employers liability is also includable.

Road Risk and Combined Further Explained

Within both policy areas comes a further breakdown into Comprehensive, Third Party and Third Party Fire and Theft. Much like private car insurance, these cover the same sort of thing from covering everyone involved in the event of an at fault accident (Comprehensive), to only covering the Third Party and not yourself in the event of an at fault claim.