Your Guide to Motor Trade Insurance and Why Should You Hire an Insurance Broker

Finding the right policy in the motor trade industry can be a complicated part of insuring your business. Especially if you’re new to the industry. When you decide to join the motor trade, the regular car insurance policy is not going to be enough to fail-proof your business and protect your finances and weak spots which is something every business has. Failing to get the right motor trade insurance could cost you dearly in the long run and puts your company, employees, and investors at risk.

In the motor trade industry usually, the situation requires that the customer leaves their vehicle in your care, therefore their insurance no longer covers the vehicle and so a specialist insurance policy is required for you to protect all sides of the trade. Depending on your situation, it’s vital to get professional advice and find a policy that is appropriate and specific to how you are trading.

So why risk going without one, or entertaining the idea to make an uninformed choice thus risk jeopardizing your business because of the wrong insurance (which is a waste of your time and money) and then make yourself vulnerable to claims and fines?

Motor Trade Insurance: What Is It?

Motor trade insurance is the essential type of insurance for all those responsible businesses that are in any way involved with trading, caring for, and handling vehicles of any kind and way. Trading with vehicles, no matter if you sell them or you fix them is not an easy task (although a very rewarding one when done right), so having the proper coverage in place will save you a lot of money down the road. Contacting the right motor trade insurance brokers is the only way to protect your business. Motor trade insurance isn’t just for driving other cars that aren’t your own – if you interact with customer vehicles in any way, you should consider whether you need a policy. A prime example could be a mobile tyre-replacement service.

But, how do you differentiate insurance with all of the right policies and separate it from the ones that won’t serve your business right? Many of us aren’t well versed in the depths of the insurance world, so we’re going to explore the basics that make a motor trader insurance policy a good one and cover the things you need to be looking out for at all times.

The trade motor insurance policies generally stretch out between 3 different areas:

Road Risk Only Insurance

Road risk insurance is the minimum legal requirement for anybody driving vehicles in the motor trade. A road risk policy guarantees insurance for all vehicles that are under the ownership of the business, including vehicles used by the employees for work purposes. If you drive vehicles regularly that you do not own, such as cars left for repair, test drives etc., (all within the limits of a small company ) then this is the ideal type of cover for you. From tool and machinery replacement value to vehicle replacement everything is taken care of under this policy.

Liability Motor Trade Insurance

A Liability Motor Trade Insurance policy is specially designed for any type of injury inflicted upon a customer, their person or property, due to the motor trader’s negligence or your business. It covers any legal fees if a customer takes you to court and their medical treatment. There are three main types of Liability Insurance, Product, Sales and Service Indemnity.

In case you’re not sure which liability insurance you need, also consider:

• Public liability
• Employers’ liability
• Professional indemnity
• Product liability
• Directors’ and Officers’ insurance

Combined Motor Trade Insurance

This type of policy is an extensive policy that is designed to protect the entire business of a motor trader including money, vehicles, liabilities, premises, tools and contents. This policy provides cover for motor traders that operate from business locations as well as from your home. Combined motor trader insurance is usually more costly but it is designed to give you peace of mind that should any unwanted event arise the damage will most likely be covered.

Why Hire a Professional Broker?

If you’re a customer-focused business owner, you can find a great deal of satisfaction working in the motor trade. Additionally, hiring a professional business broker isn’t mandatory but your business broker could help you make the best of your financials, giving you the tools and resources you need to get the maximum amount at closing a deal with a customer. Like in any business transaction, it is critical to have someone experienced handling the negotiations for you if you aren’t ready to do that yourself. Your business broker can do that for you. He or she works as a middle ground communication medium working out the details of the transaction between you and the client.

Ask For Professional Financial Advice

Ultimately, you can’t be expected to know everything about cars, the motor industry and insurance policies at the beginning – and you’ll find that you’ll learn a lot on the job. But the more you talk to people who are experts you will gain more and more confidence as time goes by. Most people wouldn’t embark on a long journey without a plan. It’s against all professional advice to start something potentially costly and time-consuming without seeking some advice first and considering all of your available roadways and options. Still, many small business owners neglect to talk to a financial advisor and are paying the price of inexperience later. This is why if you aren’t ready to hire a full-time broker, or at least to have a sit down with one for any leads that could point you in the right direction.