The vehicle industry is an extensive one that includes mechanical workshops, car dealerships, tyre and brake companies and MOT centres, just to name a few. There is one thing all these companies have in common; they all need good motor trade insurances to protect their companies on a daily basis.
This is a risky industry and when you are responsible for letting a customer drive away in a vehicle you have just repaired, it’s essential you have the best cover in place to give you the protection you need should something go wrong.
Many companies don’t realise what is included in motor trade insurances and what additional covers are available to give them that added security when they open their doors each and every morning.
The first and most important aspect of any business is the property where you work from. You need to know your building is protected against fire, theft and storm damage. In most instances building cover is automatically included in motor trade insurances to give businesses that level of protection they need.
This includes any contents cover. This may be computer equipment, desks and office furniture. It’s important you make a complete list of everything within the property to ensure you have the right level of cover at all times. This also includes any money that you take. Often you won’t have time to get to the bank and may have to store it in the safe overnight, a risk that you deserve cover on.
Any vehicles associated with the business should be added to your motor trade insurances. This also helps you reduce your private auto cover, as private vehicles can be incorporated into the policy, helping you reduce your overall costs.
Liability cover is essential for any business and vehicle companies should have three levels of this type of cover. Public liability is an absolute must and gives you protection every time a customer steps foot in your building. It only takes one customer to slip in some oil on the floor and end up being taken to hospital, for you to find a hefty claim against you.
What many company owners don’t realise is that they are legally responsible to pay that claim. Not having public liability cover or not having enough cover can result in the business ending up in serious financial difficulty.
In the UK, it is a legal requirement for all businesses to have employer’s liability cover. This is essential from the day you hire your first staff member. This is similar to public liability, except it covers you and your staff member in the event of an accident and reduces the risk of you having to pay out a claim.
Then there is your service indemnity cover. This protects you on work you have completed. Should a customer drive away in a vehicle you have just repaired and have a serious accident as a result of the work completed, this cover offers you the protection you need.
Motor trade insurance should also include any tools and equipment that you rely on daily. Some of these tools and equipment items can be very expensive to repair and should be covered, enabling you to replace or have them repaired in the shortest period of time.
Finally is the road risks cover, which should be incorporated into the motor trade insurance if your business requires driving multiple vehicles throughout the day. It is a legal requirement in the UK that every driver on the road have adequate insurance. Road risks give you the ability to drive any vehicle on the road legally and safely.