Three Different Types of Motor Trade Cover – Ensure You Understand The Difference!
Whether you are a motor mechanic, vehicle sales or a Vehicle Valeter, you should be able to take out a motor trade insurance policy for your business. There are several differences between a private car insurance policy and a traders car insurance policy, however, the most significant variant is that it is you who is specified on the policy. With a private policy, cover for the vehicle must additionally be included. This means that instead of taking out a policy every time you need to drive a different vehicle, you only need one policy which will cover you to drive all the vehicles you will need to use for your business, including those belonging to your customers.
There are a various range of options you can choose from for your traders insurance, and it is important for you to choose the right policy so that you get the ideal amount of cover for the best value for money.
Road Risk Cover. This insurance policy will cover you for all vehicles that are owned by the business, additionally including vehicles that the business holds for work purposes. Road risk cover does not provide cover for driving any vehicle at any time, so it is important to be careful with which cars you use should you purchase this policy.
Liability Cover. If your business involves interacting with the public, or customers coming to your working environment, it is vital that you purchase a public liability insurance policy. This policy ensures that you are covered should someone injure themselves whilst at your place of work, and make a claim. Without this type of cover, it could be financially damaging to your business if an injured customer takes you to court due to an accident on your premises.
Combined Cover. This insurance policy combines both road risk cover and liability cover and normally caters for motor traders who operate from premises, while adding extra areas of protection. With both types of cover, you can additionally be protected should any damage occur to the buildings that you lease or own as part of your business. Equipment, tools and machinery can also be included should you decide to purchase this insurance policy.
Before deciding the insurance policy that suits you and your business, we advise that you do a significant amount of research so that you are fully aware of what you are covered for and what you are not. The different forms of insurance policies listed above differ greatly, so it is important to assess your needs: there may be no use in you taking about a combined cover policy, therefore, you may just need road risk cover. Likewise, should your business benefit from combined cover and you decide not to take it out, you may be penalised in the future.