Five Tips Before Taking Out Motor Trade Insurance

Insurance for the motor trade is targeted at those businesses and individuals who carry out commercial activities related to servicing, repairing, buying or selling motor vehicles. That can include cars, vans and motorbikes. As with other types of insurance, it’s important to get the right level of cover, and to take out a policy that has features that are a good fit for your particular business. So here are five tips to follow when taking out this type of insurance.

1. Be aware of the different areas covered

These policies can cover road risk only, or liability, or can have combination cover for both road risk and liability. Liability insurance protects you if a member of the public is adversely affected by your business. It covers areas such as defective workmanship, product liability and service indemnity. There’s also public liability and employers’ liability.

2. Know the three levels of road risk cover

Road risk is divided into three levels of cover: third party only, third party, fire and theft, or combined which includes the liability cover.

3. Understand what third party only covers

Third party is compulsory by law. It covers you to drive your own and your customers’ vehicles on the road, covers you when you’re repairing vehicles, buying or selling them, fitting, tuning or valeting vehicles, restoring cars or operating an MOT station or garage. It covers injury, property damage, or death caused to third parties by any vehicle that is connected to your business.

4. Know what Third Party, Fire and Theft adds

Fire and theft cover perhaps? Well yes, but accidents are often also included in this type of policy, which can be useful. We all know that the level of theft from industrial and commercial premises is rising. Motoring Research reports that thefts of Light Commercial Vehicles that have keyless entry technology are rising sharply.

So motor trade insurance form a specialist such as is vital.

5. Check the level of cover you need

The cost of this type of insurance varies hugely, depending on the size of the business and the level of risk. So it will pay to talk to a broker who can advise you on the right fit for your business. They’ll ensure that you are covered to an appropriate level.

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