Motor Trade Insurance
If you own a business that operates within the motor trade industry, motor trade insurance could provide you with the simple, straightforward cover that you need.
Whether you are the owner of a car dealership, a garage or a company that offers valet-parking services, motor trade insurance will provide you with the financial protection that you need.
If you would like to know more about motor trade insurance, read on to find out how Dover Street Insurance Brokers can help you to protect your business today.
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What is motor trade insurance?
Motor trade insurance (or traders’ insurance) helps to provide protection for businesses and staff that work within the motor trade industry. Whether this involves selling, driving or working on vehicles that belong to customers or the business itself, flexibility is a key element to this type of policy so that every member of staff is covered.
In addition, motor trade insurance policies will also help to protect automotive businesses against accidental damage – for example, if something happens while a member of staff is moving a vehicle on a forecourt or a mechanic is replacing a tyre.
Types of motor trade insurance
There are several different types of motor trade insurance that you should consider for your business in London:
- Road risk insurance: This covers vehicles that are taken onto the public highway. For example, if your cars are delivered from a car showroom to a buyer, or if a garage needs to regularly take cars out in order to check for faults. As with standard motor insurance policies, you can choose to take out third-party only (the minimum level of insurance required by law for UK drivers which covers third-party property damage, liability for injury to others and liability while towing a caravan or trailer), third-party, fire and theft (which also covers theft, theft damage and fire damage), or comprehensive road risk cover (which will provide protection for windscreens, personal effects, loss or damage to vehicles, medical expenses and accidental damage).
- Combined motor trade insurance: This is a combined type of policy which covers road risk as well as damage to your premises or equipment. In some cases, it may be cheaper to take out this type of policy rather than individual policies, but this is something we can advise you on.
- Parts-only insurance: This type of insurance is more basic and is only suitable for motor trade businesses that don’t drive vehicles on public roads as it does not provide enough legal protection.
- Public liability insurance: Provides protection if your motor business activities kill or injure a member of the public or damage their property.
- Professional indemnity insurance: Provides cover against bad client advice or if your work causes a problem for your client.
- Employers’ liability insurance: This is a legal requirement if you employ any member of staff (including permanent, temporary, contractors or freelancers), regardless of whether they are driving vehicles or not. The minimum level of protection is £5m, which will cover the cost of compensation claims if they get injured or ill at work.
- Product liability insurance: This type of insurance will provide protection in the event that a part you have fitted to a customer’s vehicle is defective.
- Material damage cover: This provides cover for any equipment or vehicles that your business owns. For example, if you own a car dealership, this will provide insurance for the unsold vehicles that you have in stock.
These are just examples of some of the types of motor trade insurance policies that we look after at Dover Street Insurance Brokers. As we know that no two businesses are the same, speak to us today to find out which policies will best meet your needs.
Do I need motor trade insurance?
If you own a car dealership, garage/mechanics, car valet business, a scrap yard, vehicle-restoring business or a repossession company, then you are likely to need motor trade insurance as this will cover vehicles that you own, as well as those that belong to customers and are under the ‘care, custody and control’ of your staff.
In addition, if you are self-employed and have a responsibility for other people’s vehicles as part of your work within the automotive industry, then you still need to have your own motor trade insurance policy in place to ensure you are protected.
The cost of motor trade insurance
The amount you will pay for your motor trade insurance premium depends on the size of your business and the nature of the work that you do. To ensure that you have the correct amount of cover for the best price, you should make sure that you only pay for the elements of cover that you need. It is also important to be aware that ‘any vehicle’ policies that may charge extra for covering specialist ones (such as HGVs, classic motors or high-performance vehicles), and that considering a higher voluntary excess can also help to make your policy cheaper.
In addition, taking the time to consider security measures to protect your vehicles (including overnight storage), only employing experienced drivers with clean records and having a risk management/assessment process in place for your drivers can also help to keep your motor trade insurance premium down.
At Dover Street Insurance Brokers we understand that cost is important to your business, but it is crucial to ensure that you are properly protected in line with the risks your business faces. With that in mind, we will take the time to understand the specific needs of your business and recommend the amount of cover that is best suited to you.
What else do I need to know about motor trade insurance?
In order to take out a motor trade insurance policy, the vehicles that need to be covered should be registered in the name of a company or a partner or director of the company.
In addition, it is important to make sure that your motor trade insurance policy is kept up to date updated if you buy or sell a vehicle in your fleet, otherwise it could be invalid when you come to make a claim.
How can I get motor trade insurance?
Dover Street Insurance Brokers have a team of specialist advisers ready to help you get the right protection in place for your business.
We will take the time to understand the specific needs of your business and are committed to delivering a completely personalised service, ensuring that you have the best possible cover at the best possible price.
To find out how much peace of mind costs, contact one of our team by calling: 0208 057 4130.