Looking for Motor Trade Insurance?
Also known to some as traders insurance, motor trade insurance is needed for those who buy, sell, provide breakdown services, repair or carry out valeting or servicing on vehicles.
Motor trade insurance will provide cover for when business owners and their staff need to drive or work in a customer’s vehicle. You might also need cover if you use your own company vehicles for business purposes too, such as a tow truck or van to help with breakdowns.
Even if you provide a service that doesn’t necessarily mean that you’re driving the customer’s vehicle, such as mobile windscreen repair, you will most likely need some form of motor trade insurance cover.
Liability covers for motor trade insurance
Although there’s a variety of motor insurance policies available, and it’s smart to research which ones will benefit your business the most, public liability insurance and employers’ liability insurance could be the bare minimum.
Protects you and your staff in case a customer or member of the public claims for damage, illness or injury to themselves or their property as a result of your business.
Required by law if you employ staff, it will cover you and your business if they claim compensation for illness or injury.
Road risks policy
This type of motor trade insurance policy means that your vehicles and those left in your care by customers are covered on the road. There are a number of levels available:
The required minimum, which covers you against damage or injury to third parties (including passengers).
Covers the above, as well as damage from fire, crime or actual theft.
Covers all the above again, but can also include cover for accidental damage, personal items, medical expenses and even windscreen cover.
Combined motor trade insurance
It’s cost-effective to try and bundle motor trade policies together with the same insurer and will save you precious time in admin too. However, there are some policies that you may not consider important, but could offer you protection against unforeseen circumstances that could result in financial loss as well as downtime. This type of policy can include:
- Buildings insurance
- Machinery and plant cover
- Business interruption
- Contents and stock insurance
- Business equipment including tools
- Personal accident and sickness
- Trailer cover
- Goods in transit cover
Motor Trade Insurance – Useful FAQs
Rather than being tailored specifically for businesses in the motor trade, motor fleet insurance is a wider policy that covers anything from a whole fleet of vans or HGVs, right down to just a couple of cars. Anyone with a number of vehicles can take out this type of policy, no matter the industry they work in.
Yes, even if your business is a side venture (such as mobile valeting), you can still get motor trade insurance, just speak to your insurer to see what type of cover might be best for you.
You will still need motor insurance policy as you have vehicles in your custody, control and care. Also, if you have any employees, you will need at least employers’ liability insurance which is a legal requirement.
This will depend on your type of policy and insurer. It’s best to double check any exclusions before pulling a trailer just to double check, and add it to the policy if necessary.