The type of motor trade insurance cover that you need is down to the type of business you run.
So whether you’re starting a new business, expanding your current business, or just want to check that your existing business has the correct type of cover… read on to find out more!
This type of cover is needed for anyone who will be driving third party (i.e. their customers’) vehicles as part of their job.
That could be as part of a breakdown recovery service, or if you’re a car dealer who buys used cars.
In any job where you’re driving someone else’s vehicle, it’s important that you get the right type of insurance to protect yourself financially from any costs incurred if you did damage their vehicle, as well as to protect your reputation!
The types of road risk coverage available will be familiar if you’ve ever bought car insurance for your own vehicle. The three common types come at different costs, and offer different levels of protection.
1. Third party insurance:
This is the legal minimum level of insurance you need to be able to drive on public roads in the UK.
It covers the cost of injury or loss to any third party. So, if you damage another car whilst driving a company vehicle – the cost of repair would be covered by your insurance.
Similarly if you had an accident that injured a passenger, any associated legal costs would be covered.
You, yourself, would not be covered for any personal injury compensation, and the cost of any damage to the business vehicle you were driving would also not be covered.
2. Third party, fire and theft:
This is the same level of coverage as third party insurance, although any vehicle under your control, or that you are looking after for a customer is also covered should it be damaged in a fire, or stolen.
This is the most expensive type of insurance, but it does provide the most protection. It covers any vehicle you own, as well as any vehicles belonging to a customer that you are looking after, if they suffer accidental damage.
As a responsible business, however, there are several other types of insurance that you may need so it’s worth considering whether they are relevant to you.
1. Employer’s liability:
This is a legal requirement if you employ other people. This type of insurance pays out if the employee is injured, or dies whilst they are at work.
2. Service liability:
This type of insurance covers the cost if you fit or supply a product that is faulty.
Say, for example, you are fitting new brakes to a car that later turn out to be fitted incorrectly, this insurance would be relevant to pay any costs incurred by damage that faulty product had caused – if it had caused the car to crash, or injure someone.
3. Public liability insurance:
This is relevant to you if you have a business premises that customers can access. If a member of the public suffers an accident whilst they’re on your premises, they can take legal action against you. At this point, your public liability insurance would protect you.
Combined insurance can provide a mixture of the types of insurance listed above, and can be a good option if your business model requires several different types of coverage.
For further details about what motor trade insurance covers, give us a call on 0844 931 2020May 13, 2014