The motor trade is a large and important part of the UK economy and contains many separate sectors and niches. In fact, when the industry is booming, it is a sure sign that the British economy is in good health!

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Motor trade insurance is designed for those in the business of buying and selling vehicles. There are a number of different policies available, helping to cover the trader, their tools and equipment as well as the customers who come through the door and test-drive their vehicles.

If you’re a business owner in the automotive industry, being insured is vital to ensure that all aspects of your business – from your equipment to your employees – are covered against loss or damage.

What Types Of Business Need Cover?

If your business deals with anything automotive, whether it’s a car dealership, parts stockist or a garage, your business needs to be covered with a motor trade insurance policy. Such policies can help to protect you against any claims brought against you by third parties as a result of an incident on your premises.

What Types Of Cover Are Available?

If you’re working in an industry that involves vehicles you will need the appropriate car insurance to ensure you operate legally.

Known as Road Risks Insurance, this type of policy will essentially cover you for driving most cars and vans. Should you want to drive different vehicles – anything from motorbikes to prestige cars to HGVs – you must ensure that you have the correct licenses in order to make sure you are driving legally.

What Cover Do I Need?

There are three types of motor trade insurance cover available for those who work in the industry:

  • Premises Cover

    For those businesses who work from a fixed location, premises insurance helps to cover the base of operations and the equipment and tools that they need to carry out their day-to-day work.

    This is particularly useful for businesses such as garages, car dealerships and stockists of additional parts such as wheels and exhausts and paint shops. Equipment and supplies can be very expensive, and losing it to theft or fire damage even more so, making sure you and your contents are insured is essential to the day-to-day running of your business.

  • Demo Cover

    Demo cover is used to provide an extra layer of protection when it comes to customers test driving vehicles, provided they have a full UK driving licence.

    Demo cover helps to cover the vehicle whilst it is off the forecourt, ensuring that should an accident happen during a test drive then the vehicle would be covered and costs could be recouped as a result.

  • Public Liability Insurance

    Public Liability Insurance, whilst not required by law, is recommended for businesses who deal with the public as it helps provide protection against third-party claims in the event of accidents.

    This ensures that, should an accident occur on your property that causes injury to a customer – such as running over a customers’ foot – then the business would have a level of protection should a claim be brought against them.

What About The Staff?

As well as ensuring that your stock is protected against third party damage or claims, it is also essential that you look after the welfare of your staff as well, to prevent costly claims made by staff who may have fallen ill or suffered an injury at work whilst under your employment.

Employers’ Liability is mandatory if you employ any members of staff at your establishment. Employers’ Liability helps to cover yourself and your business in the event of accidents at work or if an employee should fall ill as a result of their employment.

What About Mobile Businesses?

There are also many businesses who don’t have a base of operations, usually taking their tools for the job in a company van. Mobile traders, such as mobile wheel fitters and car cleaners, can take out combined motor insurance policies in order to cover their vehicles and the tools contained within.

Taking out a combined policy helps to protect the value of both your vehicle and equipment in the event of an accident causing damage to either and leaving you unable to carry out your work.

Here at Quotiva we can compare quotes from our network of specialised brokers to find you the best deal on your motor trade insurance policy. Just fill in a few details about you and your business and we’ll get to work right away.


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