Motor trade insurance usually falls under one of two distinct categories. Depending on what services your business provides and the scale of it, it is likely you will either need road risk insurance or motor trade combined cover.
Each type of insurance offers its own unique form of protection for a business, so it’s important to get the cover that suits the exact needs of your company.
It is sometimes difficult to understand whether your business requires road risks or traders combined cover. If you need some guidance, be sure to call a motor trade insurance broker to receive some useful advice.
Road risks cover is perfect for small businesses, especially those based at home rather than at set premises. It insures the vehicles that are in the trader’s possession when on the road. This could be relevant for circumstances such as driving a vehicle from the repair garage to a driveway; when picking up or returning a vehicle to a customer; or when testing a car following repair work.
However, road risks insurance is a necessary part of a traders combined policy, too, as almost all motor trade businesses will need to drive vehicles as part of their work.
Some of the main businesses that would benefit from this type of insurance are: vehicle sales, mechanics, motor engineers, vehicle tuners, vehicle servicing and repairs, body repairers and panel beaters, MOT testers and valeters.
Motor trade road risk insurance doesn’t cover a driver for anything other than business use. For example, the business owner couldn’t use a vehicle to run personal errands.
Motor traders involved with higher risk cars, such as sports cars, commercial vehicles and classic cars, may find it more difficult to obtain insurance, due to the increased costs involved in the event of an accident or incident.
Road risk cover only protects named drivers. If you have someone else working for you and they are not listed on a policy, they are not allowed to drive the vehicle under your policy in any circumstances. Not only will they need to be added to your road risks policy, but if you employ another member of staff, it is very likely that you will also need employer’s liability insurance, too.
If you are in the business of buying and selling cars, this type of cover protects the vehicles you intend to trade. But bear in mind that road risk insurance does not pay out the full value of a vehicle in the event it is written off or stolen – it only pays the trade price of the vehicle.
A road risk policy doesn’t protect a separate business premises. If you conduct trade from somewhere away from your own home, it is likely you will have to obtain trade combined insurance instead.
If you have another part-time business in addition to your motor trade company, you may find that some insurers provide cover for this too. This is often the case for tradesmen, such as builders, plumbers and electricians.
Like private car insurance, motor trade road risk insurance is available under third party, third party fire and theft, and comprehensive categories. However, it is often offered at a more basic level, as personal effects and windscreen cover might not be included.
For any further questions about the type of motor trade insurance your business requires, be sure to contact an experienced broker, like the ones at ChoiceQuote. They can then talk to a number of insurance companies to find the policy that is perfect for your needs.