Motor trade insurance is a catch-all term for a group of policies for businesses and individuals working in the motor industry. The possible scenarios each business or individual faces depend very much on the particular business type.

There are a number of different motor trade occupations from home to car valets, vehicle mechanics, MOT centres, vehicle dismantlers and much more. Regardless of the size of the business or your place of work, you need motor trade cover that protects your business against the risks you face.

The number of extras that can be included as part of your motor trade insurance policy is almost limitless. Some may be included as standard, while others may be added for an additional premium. Some of the typical additions to a motor trade insurance policy include:

• Public liability insurance
• Employers’ liability insurance
• Premises cover
• Cover for driving overseas
• Business interruption insurance
• Goods in transit cover
• Business stock/office contents cover

The cover you need will depend very much on you and your business. In some cases, you may already have coverage from another source. As a specialist motor trade insurance broker, it is our job to discuss your specific requirements with you and assess your needs. We then find a motor insurance policy that protects you against those risks without spending a penny for cover you don’t need.

We have already provided some details about the type of cover included in many motor trade insurance policies, but there are also a wide range of additional features you may wish to consider. That includes:

• Road risks – Most motor trade insurance policies will include some protection for road risks. This type of policy names the driver to be insured and not the vehicle. That allows you to drive your own or customers’ vehicles for motor trade purposes. If you don’t need to drive vehicles on public roads for business purposes then you could consider a parts only policy.
• Parts only cover – Depending on the nature of your business, you may have the option to choose parts only cover. This is the most basic level of motor trade insurance available which can help to keep the costs down.
• Combined motor trade insurance – This type of policy provides a full range of cover for everything from premises, money, vehicles, tools, liabilities and contents. This can cover traders who operate from home and commercial premises and ensures every aspect of their business is protected.
• Public liability – If you operate from a premises that customers visit then it is your responsibility to provide a safe environment. Public liability insurance can provide cover against compensation claims from members of the public who are injured or suffer a loss as a result of your business.
• Employers’ liability – If you employ one or more members of staff then it is a legal requirement that you put employers’ liability insurance in place. This can be included as part of your motor trade insurance policy.
• Product liability – This protects your business against the claims that could arise if you fitted a faulty part to a customer’s vehicle.
• Any drivers – Any driver policies will cover your staff to drive vehicles from cars and vans to HGVs. This type of policy is likely to be more expensive, so make sure you only cover employees for the vehicles they need to drive.
• Material damage – If you run a motor dealership then this will cover you for any damage done to vehicles you own but intend to sell.

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As well as determining the different elements of your motor trade insurance policy, you also have to make a decision about the level of road risk cover you’re going to need. There are three options, with third party being the cheapest and comprehensive the most expensive.

• Third party – Legally, this is the minimum requirement to drive a vehicle on public roads. This provides cover for damage, loss or injury to third parties and their vehicles but will not pay out for injury or damage caused to you or your vehicle.
• Third party fire and theft – As well as the cover provided by third party insurance, this type of policy pays out for damage, theft, fire or loss of vehicles under the motor trader’s custody or control.
• Comprehensive – In addition to the protection provided by the above, you will also be covered for accidental damage done to any customer’s vehicles under your custody or control, or that you own.

You should also consider the maximum level of indemnity you require to keep your exposure to a minimum. Find out more about motor trade insurance policies by speaking to one of our team now.