You may think that trader’s insurance just stops at the basic policy and that you will have to take out additional insurance to cover unique aspects of your business.
Well, not necessarily.
The Additional Covers for Most Motor Traders
Motor Legal Protection
Although legal cover comes as part of a lot of policies, there are some legal expenses that may not be covered.
Additional cover for legal expenses can help you recover the cost of things such as:
– Loss of earning
– Car hire
– Clothing (if appropriate)
– Policy excess
– Other legitimate costs
This additional cover is also general speaking extremely affordable. Quite often it will be a solicitor that will help you with all these areas above.
Liability cover is often included within a combined policy but it can be added to a road risk only if you employ people OR want to cover members of the public on your private premises.
Motor Trade Public Liability Cover is there to protect you against claims or compensation pay-outs arising from members of the public who may hurt themselves on your property OR damage to their property through a result of your or your employees’ actions.
Employers Liability Cover is a legal requirement for anyone who employs staff. Should an employee injure themselves or full severely ill through working for you, they may be able to make a claim against you or your company.
Claims like this can often result into costing thousands of pounds. As such, if you employ people, make sure you have employer’s liability in place.
Own a larger motor trade business or combined business?
Quite often having a larger business or operating a motor trade business that has premises such as a dealership can require the need for insurance above and beyond the cover listed above.
Additional cover for the larger business can include some of the following.
Commercial Legal Expenses
Not every solicitor can advise at the higher commercial level. As such, a more qualified and experienced solicitor may be required of which may cost more than your agreed standard legal expenses.
A more in-depth legal policy can help cover the costs of things such as legal advice, court costs, defending costs within a court case etc. It’s won’t cover pay out costs though in the event you lose the case. This would be covered by a professional indemnity or liability policy.
Motor traders often find themselves requiring commercial legal cover for things such as:
– Contract disputes
– Tax, VAT, NIC and PAYE Investigations
– Landlord disputes
– Debt recovery
– Fee’s relating to court
You may be happy to take the chance on your existing legal cover, but if you think you may require more, then we suggest you ask about commercial legal cover.
Excess protection is growing as people increase their excess in a bid to bring insurance policies down.
In the first instance of wanting to make a claim, you will still be required to pay the excess yourself. However, the excess protection would kick in to pay back the cost of that payment at a slightly later date.
Management Liability Cover
Directors and senior management of any company have the legal obligation to run the company morally and legitimately.
In the event the company is not run morally or legally, employee’s, customers, other directors or even shareholders should you have them, can accuse you of such and take you to court.
In the event of such thing happening, your personal assets could be at risk where you are found to be liable, especially where your actions have cost the company and therefore its fellow shareholders money.
Management Liability Cover is designed to protect you from such and cover against court costs, settlements, payouts and more. This policy aspect has many areas and you should talk to the underwriter about exactly what is right for you.
If you are stuck or unsure if any of this is relevant to you, speak with one of our agents who will be able to connect you with an appropriate advisor to assist you.