Who Needs Motor Trade Insurance And What Does It Cover?
As a specialised type of commercial insurance cover, motor trade insurance is a vital component for a whole range of businesses in the UK. A comprehensive policy is designed to protect against the unique risks of the motor trade – but how do you know if those risks are applicable to your own business? Whether you’re a seasoned mechanic or you own a car dealership, navigating the world of commercial insurance is often a complex matter. Our experts have been exploring further.
What Does Motor Trade Insurance Cover?
First up, it helps to understand what motor trade insurance covers before deciding whether it’s suitable for your own business. That said, there’s no ‘one size fits all’ answer to this question. Motor trade insurance policies are multifaceted and will often be customised to fit the specific needs of the business in question. However, there are some standard coverages that most motor trade policies will include:
- Liability Insurance: This covers injuries to customers or damage to their property that might occur on your premises or because of your work.
- Tools and Equipment: For businesses that use specialised tools and equipment, this coverage is essential for protecting against theft, loss, or damage.
- Vehicle Coverage: This protects the business’s vehicles, as well as customer vehicles that are in the business’s care such as for servicing, repairs, or transit.
- Business Interruption: If an insured event causes your business to pause operations, this can provide compensation for lost income.
- Goods in Transit: This covers the loss or damage of vehicles and parts while they’re being transported, such as when vehicles are being delivered to a dealership’s showroom.
If these risks are applicable to your business, motor trade insurance will likely prove a highly valuable and worthwhile investment for mitigating against any potential financial losses. As mentioned above, however, this is a far from comprehensive list of what can be included within a policy. Each business is unique, so it stands to reason that their commercial insurance requirements will differ.
Below, we’ve listed a range of motor trade businesses and the specific types of cover they might need.
What Businesses Should Take Out Motor Trade Insurance?
The umbrella of motor trade insurance extends to various business types within the automotive industry. Here’s a breakdown of who might need a motor trade insurance:
- Mechanics, Garages, and Service Centres: For businesses that offer repair and maintenance services, motor trade insurance can cover liability and damage to vehicles while on-site.
- Car and Motorcycle Dealerships: Whether dealing with new or used vehicles, dealerships will need a motor trade policy to protect their inventory and operations, including demonstration coverage.
- Tyre Fitters: Businesses that specialise in the sale and fitting of tyres require coverage for any damage that could occur during the fitting process.
- Valets and Car Cleaners: A motor trade policy for these businesses typically includes coverage for vehicles in transit and in their temporary possession.
- MOT Testing Stations: These stations need insurance to cover any liability when inspecting customer vehicles.
- Breakdown and Recovery Firms: These businesses require coverage for the vehicles they’re towing and for any potential liabilities during the recovery process.
Motor Trade Insurance from Higos
When reviewing motor trade insurance for your own business, it’s important to consult with a specialist commercial insurance provider to ensure that your policy is tailored to your specific needs. At Higos, we have many years of experience in the industry and have achieved status as a Chartered Insurance Broker. Our team of friendly professionals will take their time to get to know the ins and outs of your business, giving you peace of mind that you are adequately covered.
Would you like to learn more about our motor trade insurance services? Get in touch today. Our team are on hand to help and look forward to hearing from you. For motor trade insurance, it has to be Higos.