If you have a well-established and successful business that primarily works with vehicles daily, you will know just how important the start up process can be. Before you can become the successful business you know that you can be, you need to make sure you incorporate all the things needed to make this possible, and the most important factor of all is insurance.
Not only do you have to look into how to get traders insurance, but looking for business coverage is just as important too. In this article, we will be looking to understand the former, as this type of insurance is very important for businesses who work with cars and other types of vehicles for a living.
So, without further ado, let’s learn more about motor trade insurance.
What is Motor Trade Insurance?
The first and most important thing to understand about motor trade insurance is what it actually is. In its simplest terms, these types of policies have been designed to offer protection to the people who repair, sell, purchase, or complete any other activities that concern vehicles. People like mechanics and car salesman, to name a few, should apply for this type of insurance coverage. Put simply, you just need to remember that it is vital insurance that should be bought by people who work with a wide array of vehicles.
This type of insurance is also important if you offer a service that means you will be driving vehicles that aren’t your own. In some instances, you may be required to drive to and from the premises, as well as carrying out repair work on these vehicles, and in most cases, they will belong to your customers. As such, this type of policy will ensure that the business has the relevant coverage against any risks that could be associated with the repair work, as well as having to drive to different places.
What Does it Cover?
We’ve briefly touched on some of the areas that motor trade insurance can cover above, but to reiterate, it can help to cover any risks that your business may experience when carrying out work on their customer’s vehicles. Whilst you have full control over the specific requirements that you want your insurance policy to cover, you should be aware that there will be some rules that are compulsory by law, and so you’ll need to make sure that these are included too. If you decide to opt for more coverage, be expected to pay more money for your premium. This is something that you should expect if you want further protection.
There are so many things that you can be protected from. For example, Road Risk cover should be included if your business is required to drive vehicles on the road in order to deliver cars to buyers, as well as testing cars to check for any faults or problems. Public Liability cover works to make sure that you and your workers are covered against any claims that could be made against customers or members of the public. Employers’ Liability is something that every business who has staff should have, as this can protect your business against any claims that have been made from your employees. Whilst there are many more types of cover, these are commonly known to be the most popular.
How Much Does It Cost?
This ultimately comes down to the type of business that you are running, as well as how much coverage you need. For example, if you are operating as a lone mechanic who works primarily from your house, it is very likely that you will pay less for your insurance than someone who oversees several staff members and has a premises that they need to run. When it comes to location, be expected to also pay more for your premium if you are operating in a highly populated area, compared to if you were working in a town or village.
It’s also important to be aware that age can play a part in how much you could be paying for your insurance. Just like with car insurance, for example, the younger you are, the more you could be expected to pay, and this is the same with motor trade insurance too. So, if you are under the age of about 25, there is a possibility that you may be required to seek out an alternative solution for your insurance policy.
So, there you have it. This article goes into detail about some of the most important things that you need to learn before looking for motor trade insurance. By doing as much research as you can beforehand, you will find that this will put you in great stead when it comes to finding the relevant cover for your needs.