When you are running a business, it can be difficult to understand all the legal definitions that apply to your company.
You might be wondering whether or not your business is officially classed as being part of the motor trade, and what that classification could mean for the types of insurance you are required to have.
This guide will help to clear up some of the confusion. If your business can be classified as any of the following, then chances are that it is officially a motor trade business and will require motor trade insurance.
Are you selling new or used cars to the public?
If this is the main focus of your business, then you probably have a lot of cars stored on your premises.
You need motor trade insurance to cover these vehicles against theft, fire or other forms of damage. Some motor trade insurance policies can be combined with other policies that cover the buildings, as well as any equipment you store on site.
If your business revolves around repairing cars, then you need motor trade insurance to cover the cars that you are working on, as well as the tools that you use and the premises that your business operates from.
Whatever type of repairs you are doing, whether it is simply changing a few tyres or stripping down engines, you need to be fully insured to protect yourself, your business, and your customers.
Similarly, people who restore cars are also classed as being part of the motor trade.
Even if you are only fixing up the occasional car in your garage at home, you still need to have insurance for the cars, unless they have been officially declared as being “off the road”.
However, you don’t have to insure the premises if you work out of your own home.
Valeting services also need to have motor trade insurance. It doesn’t matter that you are only in control of your customers’ cars for a short period of time; you still need to be insured in case an accident happens while you are in charge of the car.
The right insurance policy can protect you against huge financial losses in case of a crash or other motor-related disaster.
Get the right policy
Buying a motor trade insurance policy isn’t as simple as typing your details into an online comparison tool and picking the cheapest option, unfortunately. You need to get a policy that is right for the individual needs of your business, whatever that may be.
The best approach to buying a policy that is sure to protect your business no matter what happens is to use a specialist insurance advisor. Insure Motor Trade can help you to find the policy that you need at a fair price.
Get in touch with us today on 0844 931 2020 to get a quotation!May 12, 2014