What Is Motor Trade Insurance?
A Motor Trade Insurance policy is also referred to as Road Risk Insurance. It is taken out by someone who runs a business involving anything to do with cars, motorbikes and vans such as buying and selling cars, repairing and servicing, valeting, running a garage or MOT centre etc. The size of your business does not matter or whether you work full or part time cover can be arranged.
Let us look at the types of policies available and what they cover.
Third Party Only
By law, at very least, a Third Party Only policy is required by a motor trader if the trader a) repairs, services or restores vehicles, b) is a vehicle fitter, mobile tuner, or valet c) runs an MOT centre or garage. d) sells and buys vehicles for profit e) drives his/her own vehicle or that of a customer on the public roadway, has any of those vehicles on the business premises or at the customer's or his/her home address.
Any driver who is named on the policy is permitted to drive any vehicles in relation to the motor trade and are covered for damage to the other party's vehicle.
Third Party Fire and Theft
Third Party Fire and Theft covers a trader for all those things mentioned above in Third Party plus also included is cover for the loss or damage to vehicles that are under the motor trader's control or for fire and theft. Any third party injury, damage or claims are also covered.
On top of the things mentioned above in third party and third party, fire and theft comprehensive cover also includes accidental damage to any vehicles that the motor trader owns or has responsibility for.
Motor Trade Liability Insurance
This includes public liability, employer's liability and sales and service indemnity. With employer's liability the motor trader is indemnified in the event of any employees sustaining an injury. With public liability the motor trader is indemnified due to any injury caused to the public plus loss or damage of property. With sales & service Indemnity the motor trader is indemnified for injury or accidental damage to any property due to the buying or selling of new or used vehicles, the sale or supply of products connected with the motor trade and the alteration, maintenance, inspection, repair, testing, servicing or cleaning of vehicles.
Combined Motor Trade Insurance
Combines insurance covers premises, money, tools, vehicles, liabilities and contents. In addition the motor trader's whole business is protected and it also covers traders who operate their business from home and business premises.
Hopefully, you now have a better idea of what Motor Trade Insurance covers.