As a Motor Trader, you are probably conscious of the responsibility and duty of care you have to your customers, your employees and the public.
Day by day you no doubt follow and implement all the necessary Health and Safety measures in order to protect you, your business and all of those involved in your business – either as clients or staff. Similarly, being alert and following the rules as far as finance is concerned will probably feel like second nature to you too. Even carrying out routine tasks on vehicles or the shop floor will likely be done with safety and procedure in mind. So, when every part of your business is already governed by certain requirements and specific regulations, it makes sense that you will need specially tailored insurance to cover the business and all its eventualities.
Motor trade insurance is designed specifically for the motor trade industry with everything from the most basic of covers to the optional extras allowing you to tailor your policy and have peace of mind. Of course, as with anything shrouded by technical terminology and mystery, you will have questions about motor trade insurance that need answering.
Other than the fact that having the correct insurance is a legal requirement, the simple answer is you need motor trade insurance for protection and for peace of mind. Depending on your specific business, the kind of cover you require and the reasons for it will differ but whatever your type of motor trade, having insurance cover means that if the worst happens you aren’t alone, your business and interests are protected and you can have peace of mind.
2. What is motor trade insurance?
Motor trade insurance is designed to cover those who sell, buy, repair or generally work with anything related to motor vehicles. There are a variety of policies depending on your business but they all offer cover and protection for those who make their living in the motor trade industry (valets, garages, showrooms, service and MOT centers, etc.).
3. Why would I need Employer Liability and/or Public Liability cover?
As an employer, you have a duty of care to those you employ, those you trade with and to the public in general. Employer’s liability cover is a legal requirement if you employ anybody. It would cover the cost of compensation for employees who are injured at or become ill through work. Public liability cover is to protect you against claims made should a member of the public, customer or client be injured whilst visiting your premises.
4. How is my risk assessed and how is my policy decided?
Although there are certain basic covers for different types of motor trade businesses, the final policy will be tailored to suit your individual requirements. As well as trying to accommodate your needs, the policy will be based on the results of risk assessments. Your business location and a variety of potential risks associated with both the business you’re in and its location will factor in the final decision in order to give you the best-personalized cover.
5. Is the optional cover for loss of trading profits a good idea?
In the unfortunate event of your business’ trading being interrupted, you may lose a significant amount of money. By taking out cover for the loss of trading profits you will ensure that should the worst happen and you lose time and money you will be able to claim back on the policy. This gives you peace of mind that even if the worst happens, struggling until you go out of business won’t be your first and only option.
6. Should I look to cover against loss or damage that affects contents or stock at my premises?
In the event of your premises being targeted by vandals or thieves, you will likely face a loss of stock and/or potential profit. Cover against loss or damage of contents or stock means that you will not be left entirely empty-handed which frees your time and mind for more important things, like getting the business back on its feet.
7. I am often on the move so is it worth considering extra cover for contents and tools whilst in transit?
Just as you take out insurance cover to protect you and your business premises, it is a good idea to take out cover that protects you/your tools and contents if anything goes wrong (theft, accident, loss) whilst in transit. Unfortunately, events that result in insurance claims aren’t limited to stationary sites alone. If you or your employees carry valuable tools or work-related items with you on the road, as part of your job, then such appropriate cover may prove invaluable.
8. What next?
Well, once you have decided what kind of cover you need and want, the next step is to contact a trusted motor trade insurance broker. You can explain your business, circumstances and any optional extras you are interested in and they will be able to carry out a risk assessment and offer you a quote. The only thing left for you to do after that is to make the final decision.
These questions are the main points you need and likely have considered when looking for a motor trade insurance policy. When it comes to insurance there is always more than meets the eye and policies should never be considered unnecessary or one-size-fits-all. Make sure you think about your business needs and what kind of business security you need before making your final decision – it is important. If you have any other questions or if you would like to discuss any of those discussed above in greater detail then contact a trusted and experienced motor trade insurance broker – they will be happy to help!