Motor Trade Insurance Is An Essential Element Of Your Business
The names may be similar, but there is a lot of difference between conventional motor insurance and motor trade insurance
. These differences arise from the purpose for which they are taken. The latter is commercial while the former is for the private use of cars. The latter also covers only the driver unlike conventional motor insurance, which cover both driver as well as the vehicle.Again, while conventional insurance protection is restricted to a specific vehicle in which the driver is travelling, motor trade insurance covers drivers when they travel in any vehicle for tasks related to their profession and is therefore very useful and mandatory for those in this occupation.
So drivers are protected when they need to take a test drive in the vehicle they have just repaired or while taking a demonstration drive for a customer to whom they wish to sell a used car and also when escorting vehicles from the inventory warehouse to the showrooms and so on. It thus protects an individual while performing his duty totally and is therefore something nobody in this profession should ignore.
The business would also be impacted if this type of insurance operated in the manner conventional insurance does. Not only is it illegal to ply a vehicle on UK roads without any kind of insurance, the costs associated with any mishap is far too much for anybody to take a chance.
After all, you have put in your hard earned money into the business as investment and would not want to risk damage to the vehicles and potential disruption of your business on a daily basis.
Though third party insurance is the first and mandatory cover that motor traders must definitely take, they need to consider other potential risks such as theft, fire and other events such as vandalism, rioting and so on that can happen any time. These risks pose a great threat to the business and any one single incident can probably put you out of business in trying to cover the damages caused.
Those motor traders engaged in buying and selling used cars would do well to take the comprehensive cover that is available with all vehicle insurance service providers. This is because it may not always be possible to accompany a customer on his test drive and should anything unfortunate take place; the business would take a great hit.
Another liability that a motor trader must suitably cover is the one related to the working environment. Since there would be workers at the workshop, their safety as well as the safety of the premises is something that cannot be compromised on and they must ensure that appropriate cover is in place. This can be done through the employer's liability insurance.
Motor trade insurance should be looked at as an input to the business and not as a cost as it can accord protection from a variety of unfortunate incidents and help you to concentrate on your business without any fear or apprehension.
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