Motor trade insurance protects against the risks involved with working within the trade – from theft, damage, accidents and can even cover you for your computers and electronic equipment. It is a legal requirement for anyone working in the motor trade, but it is often confusing to get your head around. So here we explain motor trade insurance and who exactly is entitled to it:
For anyone who runs their own motor trade business, they definitely need the protection of motor trade cover.
Even if you only fix up or sell on the odd car during evenings and weekends around your main job, if you are working within the trade and receiving payment, then you need cover. Just in case someone claimed against you, or a vehicle that was in your hands gets stolen or damaged, you don’t want this to come out of your own pocket. And there is part time cover available that will take into consideration the fact that you’re only doing it for short periods of time.
It’s often tough for youngsters in the trade, whether they’re just starting out or breaking away into self-employment. But if they have no claims bonus and don’t have any serious convictions on their licence then there are companies that may be able to quote but depending on the age depends on the restrictions that may be applied.
Even if you don’t have premises, you can still get cover for your venture. Your insurer will take into account that you operate your business from home, and ‘road risks insurance’ may be identified as an option. You should obtain cover for stock kept at your home, travelling on public roads to collect and deliver vehicles to customers, and customer demonstrations.
If you also rent or have bought premises from which to operate your motor trade business from, you will probably need additional insurance on top of road risks insurance to cover your premises. It could be a car show room, a car wash or an MOT centre – all businesses vary, and so do the risks involved. But premises do need protection against theft, fire or flooding, for example, but there might also be the need to consider public liability for people injuring themselves on your premises, as well as things like buildings cover too.
Mechanics, Car Dealerships and Valeting
Basically, anyone who does any job within the motor trade industry can qualify for cover. So if you’re unsure whether you do, if you work within the industry and are involved in any way in buying, selling, repairing or improving the look of any vehicle, then you probably do. Just send a broker an online form, filled out with all of your details, or give them a call and let them confirm this with you.