subject: Motor Trade Insurance Is Essential For Your Business [print this page] Mechanics, car dealers, MOT test centres, and garage owners in the UK are required to possess a valid motor trade insurance policy. This policy offers protection against damages and loss due to theft, accidents, and includes liability cover as well. As per UK law, it is essential for every business that is related to the motor trade to hold a motor trade insurance policy.
Road Risk policies and combined policies are the two basic categories of motor trade insurance. While they differ in some ways, both include product and public liability insurance which has been made mandatory by the UK government. Optional coverage includes business disruption, loss of MOT license, and engineering inspection, among others.
Employer's liability insurance is one of the most important components of motor trade insurance. This offers protection against any claims made against business owners in the motor trade. In addition, it is prudent to include legal expenses insurance in order to avoid paying legal fees that can be a financial strain in the event of any claim being made against you.
If this is your first time, prior to opting for motor trade insurance it is advisable to consult a broker who specialises in motor trade insurance in order to determine the extent of cover your business requires. Whatever you choose, make sure you don't let low premium offers affect your decision. Remember, a cheap policy could lead to further complications in the long run. There are many insurance companies that offer flexible payment options on motor trade insurance, so you don't need to worry about finding one that suits your budget.
Car valets insurance is also a part of motor trade insurance. Car valet is a popular business in the UK, where most valets are in the younger age group and work with expensive cars on a daily basis. This type of insurance is similar to public liability insurance where insurance companies also cover mobile valets & detailing of cars, vans up to 3.5 tonnes, motor homes & caravans. Insurance companies offer various payment options and a public liability indemnity limit of GBP 1m, GBP 2m or GBP 5m. Payments can be made in monthly instalments and depends on the extent of coverage you opt for and the type of vehicles with which you work.
Motor trade insurance ought to also include a mechanic's insurance policy that will protect your vehicle and every car belonging to customers that your mechanics handle on a daily basis. Whether you are a mobile mechanic or run a garage, you need to procure a mechanic's insurance policy. For as little as GBP 300 for comprehensive cover, you can protect your business from potential ruin in case of any claim being made against you. If your primary business is undertaking repairs and replacements, it is advisable to opt for as much cover as possible with a mechanics insurance policy.
When choosing a motor trade insurance policy make sure you determine what your potential losses could be in the event of any mishap. Along with your insurance advisor you will be able to make an informed decision before you sign on the dotted line.
by: Neil Anderson
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