Motor Trade Insurance provides cover for one-man bands working from home to main dealerships with multiple locations.
The policy is normally split in two parts, the Road Risks and the Internal Risks. The Road Risks, as the title implies, covers vehicles on the public highway and the Internal Risks covers the premises, own and customer’s vehicles on site, stock, machinery, equipment, tools as well as your business interruption and liability risks.
Some insurers combine both aspects of cover onto one contract, but others will quote in isolation for either risk. All products offer the flexibility to select from a wide range of cover and services to provide the protection you may need.
Road Risks covers loss or damage to any vehicle owned by you or in your custody or control in connection with your motor trade business. The cover can be arranged on a Comprehensive, Third Party Fire and Theft or Third Party only basis. You will need to advise the insurer if a vehicle is used for a secondary business by you or any other driver. The policy can be written on a named driver basis for the smaller risks, or any driver for the larger cases.
In both cases insurers will ask who requires social domestic and pleasure use. All vehicles need to be registered to the business, any exceptions need to be cleared with the insurer.
It is possible to extend cover for demonstration and tuition purposes, or courtesy cars in the possession of clients providing their vehicle is in for repair.
Please note that because any claim will adversely affect your policy you may wish the client to arrange cover under their own policy. Insurers will ask you to declare the vehicles in your possession periodically to enable them to obtain a snapshot of the nature of the risk. More importantly the motor insurance database needs to be kept up to date so the authorities access this to ensure vehicles are insured, failure to keep it updated could result in a £5000 fine.
As with any insurance it is important to declare motoring accidents, convictions, health issues and any bankruptcy or county court judgements.
Unlike car insurance this is a trade policy, so any claims settlement normally reflects the cost price of the vehicle. Normally a car transporter is allowable providing it is incapable of carrying more than two vehicles. If you have a trade plate this needs to be declared and included on the motor insurance database.
The internal risks policy has many sections but normally this will provide all risks and theft cover to property at your premises. This can include employee tools and your own tools (these are a frequent source of theft claims and the sum insured needs to reflect the value at risk).
Business Interruption is recommended as a major event would impact on your ability to stay in business; the cover needs to be for a sufficient duration to rebuild the premises.
In the worst case scenario, without suitable and adequate cover, most businesses struggle to survive. Core cover would also include Public and Products Liability, which needs to be extended to include defective workmanship (this does not as the title suggests cover the cost of repairing faulty work, but does cater for resultant damage).
Some equipment particularly lifting equipment and pressure items need statutory inspection certificates, these inspections can be arranged via the policy.
The policy will contain certain warranties or conditions which control the type of heating, spraying and flammables to be stored and how the use of heat is controlled. It is essential to comply with these warranties and conditions as failure to do so can void the policy in the event of a loss.
As with any business it is important to think about the values at risk as in our experience items such as computer based Mot equipment is expensive to replace. Also think about maximum vehicle values, one customer’s vehicle could exceed £100,000 in extreme circumstances. BH&S prefer to visit most premises based traders to ensure they have effective cover. The market place is always changing and we would be pleased to obtain terms for your business.