Trade insurance is a little different to your standard car insurance policy, but the basics are the same. Depending on what level of cover you get it covers the vehicles in your care for:
No businesses are exactly alike. Insurance companies understand this and that’s why they generally offer tailor-made policies to meet your firm’s specific requirements.
You need to consider the protection your business requires. Think about:
Making sure your policy covers these risks is essential. It means you’re less likely to have any claims rejected and you aren't paying for cover that’s not needed.
The requirement to have motor trade insurance applies to all businesses – whether you’re self-employed, part-time or run a fairly large, limited company. The same risks apply.
If your business is involved with vehicles, chances are you’ll need this type of cover. This includes business like:
If the vehicles come under the ‘care, custody and control’ of your staff, you're likely to need this type of cover in some form.
Things like driving other cars cover and any driver insurance won't cover your employees for driving clients' cars. So don't assume you're covered by these types of insurance
You may also need combined motor trade insurance. These policies are designed for traders with more complicated businesses. For example, if you’re holding several vehicles on the premises.
Depending on the insurer, these policies might also include cover for:
Whether you need this level of cover depends on the nature and size of your firm.
Motor trade insurance covers vehicles that are in your care as part of your business and cover varies depending on your business.
Accidental damage cover, for example, might be useful if you run a repair garage. It means you’re covered for accidental damage caused to a customer’s vehicle.
Road risk insurance is a legal requirement and makes sure that the vehicles under your care are protected. This includes your own vehicles as well as those awaiting repair.
Depending on the policy you choose, you might also see these cover options:
You can also get policies that combine road risk and liability cover. This is why it’s worth exploring your options and seeing exactly what you’re getting for the price.
Each motor trade insurance policy is tailored specifically for your business, but a motor trade policy might typically cover:
You can extend motor trade policies in various ways to meet your needs. Depending on the insurer, policies offer:
Uninsured loss recovery covers extra costs following an accident that’s not your fault. The other party’s insurance should cover the main claim. But it might not cover things you have to pay yourself, like hiring a replacement car or taking public transport.
Motor prosecution defence covers the costs of hiring someone to defend you against a motoring-related prosecution. Depending on the policy, you might not be covered for prosecutions for drink or drug driving and parking offences.
Essential personnel protection pays out if a key member of the business dies or is permanently disabled.
Fines and damage cover is there for non-completion of contracts. Some extensions even cover public relations expenses in relation to claims.
Material damage cover protects any vehicles or equipment you own. For example, if you run a motor dealership it means your unsold vehicles are insured.
Business premises cover protects the building itself, as well as tools and machinery inside. If you have a break-in and thieves steal or damage valuable equipment, you should be covered.
Demonstration cover protects any cars that are used by customers for test driving. Depending on the policy, you might have the option of adding accompanied or unaccompanied demonstration cover.
Specialist vehicle cover lets you work on heavy goods vehicles or high-performance cars. Standard motor trade insurance policies usually cover standard vehicles or those under a certain weight or value.
European cover protects you for any vehicles that are driving in Europe.
Goods in transit covers any goods in your vehicles that you transport as part of your business.
Parts only cover is for who don’t actually drive their customers' cars. Here you get what you pay for - only the parts you use are covered.
As with standard car insurance, there are 3 levels of cover you can choose when getting a motor trade insurance policy.
"There can be lots to consider when looking at trade insurance, and it might seem confusing figuring out what’s covered or what you really need. Like normal car insurance, every business is different and will need different requirements.
Our specialist and trusted partner Quote Me Today can help get your business covered without paying more than you should for things you don’t need."
Page last reviewed: 07 June 2023
Reviewed by: Louise Thomas
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