The motor trade industry covers a variety of industries such as car dealerships, leasing and rental companies, service stations and vehicle maintenance businesses. This industry is an expensive business to be in with high-risk factors that can lead to huge losses if you’re not careful.
The motor trade industry has very specific needs when it comes to insurance. From the time you start trading, right up until you retire, there are many different types of risks involved in this department that need to be considered. For example, there is the risk of accidental damage or theft; but also more importantly liability for loss or injury caused by any vehicle on your premises.
To prevent any of that from happening, you should invest in a proper motor trade insurance policy that will cover all of your needs and protect you much as possible when it comes to financial compensation.
Whether you’re new to the industry, or just looking to freshen up your knowledge on motor trading, here’s a quick guide into trade motor insurance and everything it entails.
What is Motor Trades Insurance?
Trade motor insurance is a policy that’s taken out by someone who runs an automotive business of any kind. This covers all motor vehicles and provides a safety net for companies dealing with customers’ cars and their own.
Motor trade insurance is created to protect those who make a living by buying, selling, or repairing cars. Motor trader’s coverage will provide protection no matter how small the business may be; there are many types of policies available with different features and premiums for each type depending upon what you want in your plan.
These policies come in various types with subcategories that cover everything from the person that owns the cars down to tools that are required to repair them. So let’s go more into detail about the insurance types.
Types of Trade Motor Insurance
When it comes to insurance, there is a great difference between standard drivers insurance and those intended for the motor trade industry. For instance, the standard policies include you and the vehicle you’ve additionally added to the cover, while motor trade policies specify you and every car or truck associated with your business. This type of policy ensures that you won’t have to change or upgrade your insurance when you work with a different vehicle since it already covers it.
Trade motor insurance offers you a wide range of insurance types that cover different things, so when it comes time to pick the one you should closely examine what each type includes to get your money’s worth. The three general types of motor insurance include:
· Road Risk Policy- This type of insurance can be separated into three distinct categories: Third Party Only, Third Party Fire and Theft and Comprehensive Trade Motor Policy. Road risk policy is the most straightforward policy, yet crucial for the motor trader. In a few words, this insurance covers both the business and the vehicle operator from all kinds of outside damages such as accidents, failed repairs, theft and even fire occurrences. Every motor trade company should invest in this policy to protect their business from exterior risks or disturbance.
· Liability Policy- This policy is specially designed for those who have the public walking through their doors while doing business with them or providing services. It covers any accidents that happen on company property and injuries caused by employees in the performance of duty and products liability – in other words, if anything goes wrong! There’s also an Employers’ Liability coverage that protects against lawsuits from people hired to help make things right after an incident takes place at work.
· Combined Policy- A combined insurance policy is a comprehensive set of cover that can be used by any type of motor trader. This policy covers everything from car servicing, selling or cleaning vehicles and it also offers protection for tools, contents and premises against damage caused during conducting business activities and repairs. Basically, this policy allows the most extensive cover package to protect your motor trade company.
How to Choose the Right Insurance
The policy that you need for your business is different depending on what kind of operation it’s running. Choosing the right one can help your company bloom, so doing extensive research and consulting experts can go a long way.
When it comes to choosing the right insurance policy for your motor trading company, there are a few things you need to keep in mind. Firstly, make sure you have the correct level of cover to protect your business in case of any accidents or injuries. You’ll also need to think about what type of policy is best for your needs – do you want a comprehensive policy or one that just covers third-party property damage?
Once you’ve learned the differences between each policy, you need to find the right insurance company. When doing consultations, ask in-depth what the policy covers so you won’t be surprised by any hidden terms or loopholes in the agreement when the time comes.
Another great tip is to search for policies that cover you and your employees. Should an accident occur, without the right insurance, you will be vulnerable to lawsuits and financial charges from staff or even customers that have been associated with your company. Motor trading is a risky business that employees are aware of, but knowing that the company protects them will give them a higher level of security and increase their productivity.
Insurance is a necessary step for all businesses. No matter how careful you are, something is going to happen at some point that will require you to have insurance.
So before you even start a business, explore all the policy options available and set aside a budget to cover them. After all, it’s better to be prepared for the worst rather than have to deal with the repercussions of an unplanned situation. With that being said, educate yourself on motor trade insurance and start your business on the firmest of foundations.