Most Common Risks: Motor Trade

Most Common Risks: Motor Trade

27 July 2017

At Clegg Gifford, we’ve been insuring motor trade risks since 1967. For those of you who are too young to have any grasp of just how long that is, that’s the year Concorde was first introduced, and the year after England won the World Cup. In other words, it’s quite a long time. However, while much has changed since then, we’re still here, offering unbeatable motor trade insurance cover to protect those in the trade against a wide range of risks.


What is motor trade insurance?


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Motor trade insurance policies are products designed to cover those who make their living by buying, selling, repairing, valeting, MOT-ing or doing anything else with cars, vans or motorbikes. This type of policy means that businesses and their staff can be covered when driving or working on customers’ vehicles, vehicles the company itself owns as well as personally owned vehicles of the proprietor or their employees.

One of the most important aspects of this type of insurance is flexibility, as it can allow members of staff to drive customers’ vehicles. Equally, if you or your staff do not need to drive customer cars in the course of your work, you may still need cover to protect against the accidental damage which could be caused when replacing tyres, repairing damage or even restoring a vehicle.


Different types of motor trade insurance

Motor trade insurance is an umbrella term for a range of different products which provide cover against the specific risks those working in the motor trade face. That includes products like:


What kind of risks does motor trade insurance cover?


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Motor trade insurance policies generally cover three different areas:


  • Road risk only motor trade insurance – Depending on the level of cover a business needs, whether its third-party only, third party fire and theft or comprehensive, this type of cover is a legal necessity for any business that:
    • Drives customer vehicles on the public highway;
    • Provides general services of repairing vehicles;
    • Buys and sells cars for profit;
    • Operates as a mobile tuner, vehicle fitter or valet;
    • Restores cars;
    • Operates an MOT station or garage.

  •  Liability motor trade insurance – This type of cover is designed for businesses with premises visited by the general public during the course of their work. That includes those that repair, restore and service cars, as well as car dealers and businesses that employ people. Liability insurance can cover product, sales and service indemnity.

  • Combined motor trade insurance – This type of product is designed to cover every risk a motor trader will face. That includes premises, tools, vehicles, business interruption, liabilities and contents. It also protects those who work from commercial premises or at home.


With so many motor trade insurance policies out there, we can help you find the level of cover to meet your specific needs at the right price. Call us on 01708 678 400 to discuss your requirements today.