24 Feb The Ins and Outs of Motor Trade Insurance
If you already operate your own motor trade business, there is a legal requirement that indicates that you must have some form of insurance. If for some reason you don’t already have motor trader insurance, we’ve got news for you and you’re breaking the law. When you get a motor trade insurance quote, you’ll find cover that is tailored to the automobile services that you offer. This ensures that you’re protected in case you need it.
With that said, cover is offered on several different levels. Third-Party Only is one of the most basic forms of cover. However, there are some restrictions which easily apply. Third-Party Only is also known by the shortened version, TPO and is quite basic.
It essentially covers third parties that are involved in your claim or accident. This means that cover is only granted based on the damages that were caused to any third party or their property. Hence, you’re going to need to cover most of your own cost.
In the case of a fire or theft, your vehicle will be covered as long as fire damages weren’t your fault. If you’re taking out a comprehensive plan, you’ll be covered no matter who was at fault. When it comes to buying trade insurance, it is a legal requirement. The minimum cover must be taken to ensure that your business can legally trade.
If you’re interested in demonstrative cover, then you’ll need to sell vehicles as part of your overall business. Under this cover, customers are allowed to test vehicles before they can purchase them. If you didn’t have this then customers would need to use their personal insurance as cover.
If you’re interested in employing workers, then you need employers liability cover. You can also get the option to publically cover anyone that enters your property. Product liability cover is also important since it covers any work that you carry out and serves in the event that further damage occurs. Cover on your stock is also important since it protects your business against damage or theft.
Business can be done from home or multiple locations. However, multipurpose cover can cover your establishments under one policy. If you operate from a locked compound, then you can take out compound cover so that your storage will be protected. If you’re working on vehicles, you’ll need tools as well, tool cover ensures that your tools are covered if they are lost or stolen.
Additionally, if you’re in the business of delivering auction vehicles then you’ll also need to have Carriage of Vehicle cover to ensure that they are protected during transit. Inf your business deals with recovering vehicles, then you’ll also need to ensure that you have cover on the vehicles that you do own as well as the customer vehicle.
Motor trade insurance ensures that every aspect of your business, as far as vehicles go, is covered. So if you currently own a motor trade business and you’re not covered, you should try to get that sorted out as soon as possible so that you don’t continue breaking the law.