If you are looking into the purchase or renewal of motor trade insurance, you might be wondering what the differences are in cover for part-time and full-time businesses.
Part-time traders will primarily have another occupation as their main source of income. Full-time traders will rely on the income they gain from the motor trade as their main revenue stream.
It might concern you that perhaps you one type of insurance offers certain benefits that the other doesn’t, or you might be confused as to which type of category your business falls under.
In both instances, you should pass on any fears and questions to a motor trade insurance broker, as they will use their experience in the industry to give you all the information you need when it comes to taking up a new policy.
There is one clear benefit when taking out part-time insurance; if you have a second form of income you could also receive insurance for the other business you run.
Say, for example, you fix cars part time, but you also have a second job as a tradesman, such as a builder, plumber or electrician. Some part-time motor trade insurance providers can offer additional cover for your other business, ensuring extra protection for your day-to-day working life.
You will have to provide receipts of business transactions to prove you are a part-time motor trader. Selling or repairing one or two cars a year does not classify as a business, so you need to prove you conduct regular transactions to receive appropriate cover.
Some of the most common businesses that require part-time motor trade insurance are those that work at home, either as car dealers or mechanics. If you have an actual business premises, it is likely that you require full-time insurance instead.
You might consider your business to be part-time, but a motor trade insurer might not. This is why it is essential to speak to a broker to define what exactly your business is in insurance terms.
An expert broker will then speak to the motor trade insurance companies they know would offer the perfect cover for your business and may even be able to negotiate a better price for your policy.
The most important thing a broker can do is get the right cover for you. If you receive the wrong policy for your business needs, it could be damaging for your future.
For example, if you are a part-time business and you are paying for full-time cover, you may be forking out more money for protection you simply don’t need. However, if you are classed as a full-time business and have obtained only part-time motor trade insurance, you could be left without appropriate cover. In the event of an accident or incident, you might not be protected, leading to financial and reputational damage for your business or businesses.