Motor traders need to be aware of the cover their motor trader insurance provides. There are several risks involved in the motor trade, and it’s important to have adequate protection from an insurer such as one sure insurance in case something goes wrong. Your motor trader insurance should provide you with peace of mind, knowing that you and your business are covered in the event of an accident or claim.
There are several different types of cover available, so it’s important to understand what each one offers. The most common types of cover are:
- Public liability insurance
- Product liability insurance
- Vehicle damage insurance
- Business interruption insurance
- Employers’ liability insurance
Public liability insurance is one of the most important types of insurance cover for motor traders. It protects you if someone is injured or their property is damaged as a result of your business activities. If you have customers visiting your premises, then public liability insurance is essential.
The high-value public liability claims that you will see in the news will be more than enough encouragement to make sure that you have this covered.
Product liability insurance protects you if a product you have sold or supplied causes injury or damage. This type of insurance is particularly important if you sell or repair motor vehicles, as there is a risk that a faulty vehicle could cause an accident.
It is good to know that the parts can be insured too because these are something you have less control over. You are trusting them to be up to the job and your finances and reputation are potentially on the line if they are not.
Vehicle Damage Insurance
Vehicle damage insurance covers you for any damage that occurs to motor vehicles in your care, custody, or control. This could include damage caused by an accident, fire, theft, or vandalism. If you have a fleet of vehicles, then vehicle damage insurance is essential.
Very often in the motor trade, due to waiting for parts, it will not be possible to complete a job on a vehicle in a single day and so you will require overnight cover when storing a vehicle on behalf of a customer.
Mechanics will often drive a customer’s vehicle around to test it, which has the potential to incur damage, should there be an accident. Also, this could potentially happen when a vehicle is being collected from a customer or delivered back to them after the completion of a repair or service.
Business interruption insurance covers you for lost income if your business is forced to close due to an insured event such as fire, flood, or storm damage. This type of cover is important for motor traders who rely on their business to generate an income.
We never know what might happen adjacent to our business that could affect it, so we need to be prepared by having it financially covered by insurance. It is not being overly cautious but good business practice.
Employer’s Liability Insurance
Employers’ liability insurance is a legal requirement for businesses with employees. This type of insurance protects you if an employee is injured or becomes ill as a result of their work. If you have any staff working for you, then employers’ liability insurance is essential.
This kind of insurance is a legal requirement in most cases and so needs to be part of the policy. Employees are insured differently from members of the public. To be fully covered for injury to anyone, you will need both employers’ liability and public liability insurance.
When choosing motor trader insurance, it’s important to get the right level of cover to protect your business. You should speak to an insurance broker who can assess your risks and advise you on the best type of cover for your needs.