Motor trade insurance is a broad term for the various type of insurance covers available for parties operating within the motor industry. It includes any policy that cover vehicle traders, mechanics, vehicle recovery agents, moving vehicles and all that pertain the motor industry.
Levels of policy under the motor trade insurance
The motor trade insurance is available either as a road risk only cover or combined cover. The road risk cover targets parties operating from a small premises or home with minimal assets; for instance,car salesmen or mechanics who operate from their driveway or run an online business. This policy will cover either the stock in the case of a salesman, customer vehicles in the case of mechanics or any vehicle at your possession used for either personal or trade purposes. The combined cover on the other hand covers your equipment, tools, buildings and structures, contents, money and any other assets.
Just like the usual vehicle insurance, the motor trade insurance covers are available in three different levels – third party only, third party, fire and theft, and the comprehensive cover. Each of these covers entail a different scope of coverage.
On top of these, there are several liability covers that are available under the motor trade insurance. Some of these are; employees` liability that covers employees from injuries, impairment or illness suffered in their course of work, public liability that cover business owners against claims from the public as a result of damage to property or personal injuries and product liability cover that protect businesses in case of faulty work.
Who needs this type of insurance?
Motor trade insurance is recommended to anyone operating in the motor industry. Whether you work as trader, fixer, mover or recovery vehicle dealer, you work full time or part-time or operates from home or from a premises, you need the cover to protect you, your clients, tools, structures and any asset at your disposal from the unseen but potential risks.
For some of these parties, it is a legal obligation to acquire the policy. For instance, the law requires business owners to obtain employee liability cover to protect their workforce from injuries or impairment suffered in the course of work. However, even for those with no legal responsibility to acquire the insurance, various labor prescriptions recommend insurance to protect you, your customers, properties and third parties from various forms of risk.
Scope of the insurance cover
The scope of coverage will depend on the type of policy obtained. However,
motor trade insurance allows the insured to cover any party of interest provided they have an insurable interest from a family or business perspective.You can therefore add as many drivers as you want to your policy. Among them are parties such as employees, family members and business partners. However, the more drivers you have, the greater the risk for the insurer and as a result, the rate of premiums will go up.Therefore, always consider the additional drivers carefully, know the law and consider the extent of loss in case the worst happens.
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