3 Types of Insurance All Motor Trade Businesses Need to Know About
Just as every driver on UK roads needs to have the right insurance, so to do motor businesses. Here are the three types of insurance that every motor trade business needs to know about.
Road Risk Only Motor Insurance
Road risk only motor insurance is a type of motor trade insurance for both businesses and individuals who want to purchase, repair, or sell vehicles in a professional capacity. For example, a small business that services cars for clients and has a small forecourt area in front of their business premises would be a typical road risk only motor insurance customer. It would also be the ideal type of insurance for an individual trader operating out of their own home.
Anyone who is required to regularly drive vehicles that they do not own – people who work on other people’s vehicles, test-drive cars, etc. – should purchase road risk only motor insurance. Like personal car insurance, road risk only insurance uses the same levels of cover – fully comprehensive, third party, fire and theft and third party only.
Small businesses that only have limited resources available to them can often save themselves money on their insurance costs if they know where to look. Road risk only insurance provides sufficient coverage for many businesses – there’s no sense in buying more comprehensive experience if it isn’t needed. You can Find Motor Trade Insurance such as road risk only insurance through Tradex.
Liability Motor Trader Insurance
Liability motor trader insurance covers businesses in the event that a customer or their property is injured due to an oversight or negligence on the part of a motor trade business or an employee of the business. It will also protect businesses from any legal action arising because someone is injured on your business premises or while in a vehicle owned by your business.
Wherever people are driving vehicles, there is the potential for accidents to occur, no matter how carefully they are driven. Not only this but even when people are on foot, they could slip or trip between their car and your business. Liability insurance will protect you in the event that someone sues you because of such an injury. This includes any damages that they claim for emotional damages, medical bills, or even lost wages arising from their inability to work after an injury. Without liability insurance, you could find yourself on the hook for all of those costs.
Combined Motor Trader Insurance
As you may well expect, the combined motor trader insurance is both the most expensive and most extensive type of motor trade insurance. Whereas the other types of insurance on this list are well-suited to smaller businesses and independent traders, combined motor insurance is mostly used by large motor trade businesses that provide the full range of motor trade services to their customers. These are the kind of big businesses that operate a garage, provide MOTs, and run a showroom and forecourt.
This combined insurance offers total peace of mind to policyholders. However, that certainty comes at a high cost, although by no means an insurmountable one for big motor trade businesses. The potential consequences of not having the appropriate insurance for your business can be dire. Not only can you end up facing serious financial consequences, but they could be legal consequences as well. Make sure that your motor trade business is insured for every service that it provides to customers.