One of the main benefits of holding a motor trade insurance policy is the ability to tailor that policy to suit your business’ individual requirements.
You can add extra cover to a standard policy so that you have covered all elements of your business. If you are taking out a new motor trade insurance policy or reviewing an existing one, then it is possible to cover yourself for loss of earnings.
Loss of earnings cover is also known as uninsured loss recovery (ULR). It is not supplied as part of a standard motor trade insurance policy but can be added to your policy at an additional cost.
Speak to your insurance provider about the options available.
What does an uninsured loss recovery policy cover?
Basically adding ULR to your policy covers you for a number of expenses that can occur as the result of an accident, but are not covered by the standard motor trade insurance policy.
Some examples include:
- Items damaged where the cost exceeds the standard policy limit, for example, items kept in the vehicle such as tools and other business equipment
- Unexpected hire costs if your vehicle is out of action
- Loss of use of business equipment such as tools
- Any personal injury sustained during the accident which results in a loss of earnings
- Other instances that result in a loss of earnings
- Incidental expenses such as the cost of unexpected travel or overnight accommodation
- Policy excess
With an uninsured loss recovery policy, you can recover any uninsured losses from the person being held accountable for the incident, or their insurance company.
You can only recover these losses if you are not being held fully or even partly accountable for the situation.
How does an uninsured loss recovery policy work?
Any repairs to your vehicle are covered by your comprehensive motor trade insurance policy. Your insurer will claim this back from the person that caused the damage through their own insurance provider.
Anything over and above vehicle damage, such as loss of earnings, transport back to your home if your vehicle isn’t roadworthy, damage to equipment stored in the vehicle and other unexpected expenses, are covered by your ULR.
If you are on the road a lot as part of your business then it is well worth considering adding uninsured loss recovery to your existing motor trade vehicle policy.
If I am in an accident and don’t have a ULR can I still get my money back?
If you are not being held accountable for the accident then it may be possible for you to claim compensation.
However, this is something that you will need to get advice on because you will not be able to claim compensation through your motor trade insurance policy, you will have to handle the matter yourself.
You may also be more limited as to what your can claim back outside of a ULR. The process could take longer leaving you out of pocket.
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