The term motor trade insurance is sort of a catch-all term that covers a huge range of policies. These are all aimed at keeping both individuals and businesses that are working in the motor industry road-legal The policy is provided by motor trade insurance brokers.
You will need to have one of these motor-specific business insurance policies if your company has any customer’s vehicles under its control, care or custody. Motor trade insurance will also be needed for any business that deals with the actual sales of vehicles. This will cover the firm for things such as the collecting, demonstrating, and the delivering of vehicles.
As is the case with any type of insurance, policies will vary, and because of the diverse nature of motor trade insurance, these variations can potentially be enormous.
It can cover a vast range of businesses, and therefore policies are quite often tailored specifically for the firm or individual.
A Motor Trade insurance policy can provide cover for the following things.
- Damages to premises when either they are directly owned by the business, or it’s stated as part of the lease that the business is indeed responsible for any repairs to the building.
- Any tools that are required for you to conduct your business.
- Contents that are found on the business premises such as fixtures, fittings, and machinery.
- Theft of money. (Yes, you can pay money in order to insure money.)
- Personal possessions of both customers and employees.
- Interruption of Business
- Damage to vehicles that are held at the business premises, regardless of whether or not the vehicles are owned by the business or are awaiting sale or repair.
- Public Liability, Employers Liability, and Service and Sales Indemnity Liability
- Road Risks
How to qualify for a Motor Trade Insurance policy?
You must be able to prove that you are indeed operating a genuine, honest to goodness income generating business. If you are able to do this, then you will qualify for motor trade insurance. Of course, there are a few restrictions.
- Any business must be domiciled and actually doing business only in the UK.
- Your business must generate actual, verifiable income with an absolute minimum of 6 sales or contracts each year.
Motor trade insurance is by no means a way to obtain cover on multiple vehicles. As said earlier, to be able to qualify for a motor trade insurance policy you must indeed be able to prove that you are operating a legitimate income producing business.
What type of businesses can benefit from Motor Trade insurance?
The range of the businesses that can be covered by trade insurance is vast, some typical examples include:
- Vehicle repair businesses
- Vehicle sales businesses, including individual traders operating from home (whether full or part-time)
- Garages offering MOTs and servicing
- Breakdown and recovery firms
- Vehicle delivery firms (cover may be referred to as ‘trade plate insurance’)
- Scrap yards
- Specialist vehicle collectors and restorers
- Firms selling and/or fitting vehicle parts and accessories, including tyres
- Vehicle repossession businesses
- Car valet companies
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