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Motor Trade Insurance

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Motor Trade Insurance

What is Motor Trade Insurance?

All kinds of businesses work in the motor trade -

  • car dealers
  • body-repair shops
  • service & repair workshops
  • self-employed people working from home/mobile/small premises as:
    • repairers
    • mechanics
    • motor engineers
    • panel beaters
    • tuners
    • servicers
    • valeters
    • breakdown/accident recovery operators

Motor Trade insurance cover is split into two basic categories:

  1. Road Risk insures vehicles belonging to or connected with your business. It allows you to take vehicles on the road and to trade legally. Usually cover is available as comprehensive, third party fire and theft or third Party only. Policies doesn't cover loss or damage to vehicles at your business premises.
  2. Combined Policies may insure multiple aspects of your motor trade business, including public liability; employers liability and product liability (where relevant), business interruption, material damage (to protect buildings, contents, stock and vehicles), goods in transit, etc.

All motor trades have similar, but different needs, depending on the area they specialise in. When you discuss your needs with an insurance broker you will need to consider what you need covered and to what value.

General considerations include:

  • Damage/loss to vehicles you are selling / transporting / repairing, or write off costs from fire or flood or damaged by a prospective buyer on a demonstration drive.
  • Damage/loss to other people's property because of work carried out by you, or one of your drivers, and they can sue for negligence.
  • Employees could contract a serious illnesses/injury as a result of poor Health & Safety measures in your workplace, and take out multi-million pound lawsuits against you, even years after their employment ended. Even if you fully comply with current Health & Safety regs, you could still be held liable for ill health among workers due to substances they came into contact with in the workplace, even although the dangers weren't known about at the time.