Trying to find the right motor trade insurance for your business can sometimes feel as if you’re driving around in circles. Providing protection for everything from business interruption, fire and theft to loss of money, public and employer liability, it can be difficult knowing which cover (or level of cover) you specifically need. We’ve therefore created this extensive guide ensuring you know exactly what each type of policy includes.
Motor Trade Insurance can be broken down into two main options: Road Risk and Combined.
Road Risk
Road Risk cover can be of 3 types: Third Party Only; Third Party Fire & Theft; Comprehensive.
Third Party Only:
- Covers vehicles for use in the motor trade business, for social pleasure, commuting purposes and additional business use, both in the UK and the EU.
- Protects you and any other named driver should you/they accidentally hurt or kill a member of the public.
- Provides compensation for damage done to their property.
- Covers you should you lose a customer’s vehicle.
Third Party Fire & Theft:
Third Party Fire & Theft provides the same cover as Third Party Only, as well as:
- Protection from damages and loss due to fire, theft or attempted theft.
- Covers in-vehicle equipment such as stereos, as well as visual navigation and communication systems.
- Provides replacement locks and keys if your motors’ keys are lost or stolen.
Comprehensive:
Comprehensive includes everything Third Party Fire & Theft offers, as well as:
- Provides compensation for injuries that you suffer.
- Covers windscreen and window damage and the costs of repairing or replacing them.
COMBINED
Combined Motor Trade Insurance Can Include A Range Of The Following Policies:
Property Insurance:
- Provides cover for damage that occurs at your premises. This includes damage done to vehicles, machinery, glass, computer equipment, stock, portable tools and the building itself.
- Protects stock from damage while in transit.
- New Vehicle Concession: If you own a registered vehicle under 12 months old that is stolen or incurs irreversible damages, the vehicle will be replaced with one of the same make and model.
- Cover for damage done to customers’ belongings at your premises.
- Theft cover, including the replacement of keys that were stolen from the homes of directors, partners or employees.
- Replacement of portable hand tools used both at the premises and at other sites.
Business Interruption Insurance:
- If your premises was so damaged that trading became impossible, then this would cover any loss of profits, the costs of setting up a temporary trading location and any money owed to you that can’t be collected due to damage to your business records.
- A percentage of your estimated annual gross profit will be compensated too.
- All ‘Business Interruption’ policies include an indemnity period – the length of time you can claim starting from the date of the initial damage. 1 year is the usual length.
Loss Of Money:
- Covers loss of money while in transit, at your premises, at the home of an employee or while being stored in a bank night safe.
- This includes bankers’ drafts, credit card sale vouchers and crossed cheques.
- If clothing or other personal items are also stolen or damaged, then you will also be compensated.
Personal Accident:
- If you suffer an injury or die during a theft, then you and your family will be compensated to help cover medical costs.
- Injuries include loss of limbs or sight, as well as temporary or permanent total disablement.
Employer Liability:
- Provides compensation to employees, unpaid and contracted staff should they make injury or illness claims that result from doing their jobs.
- This includes damages and expenses that you are legally responsible to pay, as well as those related to the Health & Safety at Work Act.
- We’ll compensate you for each day of court attendance that either yourself or a member of staff is asked to attend.
Public Liability:
- Protects your business against claims of injury, death or disease made by members of the public.
- Compensates for any damages made to their property, or any damages that arise from your business, including from the products you sell.
- Covers the loss of your customers’ vehicles.
- Covers any damage done to leased and rented premises.
- Provides protection in cases of Data Protection Act liability and breaches of the Health and Safety at Work and Consumer Protection Acts.
Exclusions
When taking out an insurance policy, it’s important to look out for certain exclusions that may not be included, such as:
- Employees’ vehicles.
- Quads, trikes and mini motors.
- Loss or damage to imported vehicles if not imported through the manufacturer’s usual location.
- Damage that occurs due to unauthorised members of your household taking the vehicle.
- Acts of terrorism.
Some Advice…
There are various things you can do to ensure your business is protected:
- Let your insurer know of any changes to your business, the premises or your property as they occur, as failure to do so could result in a claim being rejected.
- Regularly service all vehicles, equipment and machinery, ensuring they’re roadworthy and safe to use at all times.
- Install intruder alarms, deadlocks and padlocks at all premises to prevent theft.
Considering A New Motor Trade Insurance Policy?
At JonSimon Insurance, we offer both Road Risk and Combined Motor Trade Insurance and can advise you on a range of options to suit your needs.
We also offer optional extras such as No Claims Discount Protection and Additional Business Use that can cover a secondary occupation of the policyholder.
To learn more about our Motor Trade Insurance, we welcome you to visit us at our office in West Radcliffe for a coffee and friendly chat. You can also reach us on 0161 710 3043 or at info@jonsimoninsurance.co.uk.
