There are only two things your are required to insure by law at present:
- Employers liability
- Third party motor liability
However, most motor traders want to protect their investment in property, vehicles, plant, tools and equipment and protect themselves against liability if a customer vehicles is damaged.
A 'Package' policy is the answer
This is by far the best way to purchase motor trade insurance, and, it may not be the cheapest option. However, it will almost always provide a fair degree of certaintly around what is covered, what is not covered and what the level of cover actually is.
The golden rule here is:
If you cannot afford to purchase the correct cover, look at alternatives.
There are other ways to protect yourself from loss, and, apart from compulsory insurance, these alternative risk transfer mechanisms can sometimes be more attractive than giving your hard earned cash to an insurance company.
So what does a 'package policy' offer? - here is a run-down of the most common sections, starting with property:
- Contents (ex vehicles)
- Plant Ramp Machinery
- Customers vehicles
- Own vehicles
- Vehicle stock on the forecourt
- Public liability (excluding welding and cutting (oxy-acetelene))
- Public liability (including welding and cutting)
- Service indemnity (defective workmanship)
- Sales indemnity (merchantable quality)
- Employers liability
- Road risks (motor trade only)
- Road risks (motor trade and pleasure use)
- Engineering (all risks on specified plant and machinery)
- Engineering (statutory inspection)
- Legal insurance
- Public liability, service indemnity and sale of goods indemnity
These are important and sometimes complex subjects. Make sure your broker explains the risks of not insuring against your liability to the public and your customers, and breaks out the cost so that you understand how much of your profit will be required to purchase this essential insurance.
You've Insured your Business, why not Insure your Car or Home as well, and consider our Optional Extras which include, Tools in Transit Cover, Breakdown Cover and many more for our other products, to make sure you're well protected and to give you peace of mind.