As a Motor Trade business owner, you might have a showroom or forecourt with multiple vehicles. Or run a repair and service garage with a high turnover of customers. Whether you’re an independent car dealer, a dealership, a vendor of agricultural machinery, or run a service and MOT centre, you’ll need Motor Trade Insurance that covers you for a range of risks. With employees repairing and handling vehicles, plus the possibility of people test-driving your cars (if you own a dealership), insurance for Motor Trade businesses needs to be a core part of your business.
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Who needs Motor Trade Insurance?
Motor Trade Insurance is suitable for a wide range of automotive businesses and self-employed professionals, including:
Vehicle Sales
- Used car dealerships
- Independent car traders
- Prestige vehicle sellers
- Motorcycle dealers
Repair and Maintenance
- Mechanics
- MOT centres
- Body shops
- Tyre fitting businesses
- Mobile mechanics
Vehicle Services
- Valeters and detailers
- Breakdown recovery operators
- Vehicle transporters
- Car collection and delivery services
Specialist Traders
- Auto electricians
- Windscreen repair technicians
- Vehicle customisation businesses
- Scrap and salvage operators
Even part-time traders often require specialist cover if they buy, sell, repair, or move vehicles for profit.
At Lloyd & Whyte Community Broking our experts have years of experience in helping business owners like you with their coverage. We can arrange a policy that combines the insurance you need to protect your enterprise, including:
Property Insurance
Coverage for buildings, stock, and business-related equipment. If your business premises is damaged or destroyed by fire, flood, storm, or malicious damage, Property Insurance can cover the cost of repairs or rebuilds to enable you to keep trading.
Vehicle stock
Insures vehicles that are kept on your business premises overnight. The number of vehicle limits can be discussed with us when you arrange your insurance.
As a Motor Trade business owner, you might have equipment such as diagnostic and repair tools which can be expensive to repair or replace. Equipment such as spray booths, ramps, lifting tables, and hand tools not only cost a lot to repair but can take weeks and sometimes months to source, install and replace, impacting on your business continuity.
Business Interruption Insurance
If your workshop or premises is destroyed by flood or fire it may well take weeks or months to repair or rebuild the physical structure i.e. the building. While building works are carried out your business might have to temporarily shut down or move location. Business Interruption Insurance can be used to pay for the loss of earnings while you get your business back on its feet.
Road Risks Insurance
For Motor Trade businesses, Road Risks Insurance covers your
own and customers’ vehicles whilst they are in use. If for example, you’re
selling or repairing vehicles, and driving them as part of your daily
activities, you’ll need this insurance. The levels of coverage available are:
· Comprehensive cover
· Third-party Fire & Theft
· Third-party
You can add coverage for vehicles when driven by customers (ideal for independent car dealers and large dealerships), depending on the types of vehicles which require test drives and depending on the insurers available. If available, insurance can be tailored to include unaccompanied driving, pleasure, and domestic use.
Liabilities Insurance
Liability Insurance is an essential part of Motor Trade Insurance. It can financially protect you for liability claims brought against you by employees and the public.
Employers’ Liability Insurance
This is a LEGAL REQUIREMENT in the UK if you employ people to help you run your Motor Trade business. Employers’ Liability Insurance can be used to pay for any compensation claims that are brought against you for injury to an employee or damage to their property.
Public Liability Insurance
Public Liability Insurance is similar to Employers’ Liability but covers compensation claims made by members of the public. We can provide policies which can cover you up to £10 million or more, depending on the insurer. https://lloydwhytecommunity.com/commercial/motor-trade-insurance/
Sales & Service Indemnity
This coverage protects you for any legal repercussions from customers who have bought faulty products from you. Sales Indemnity can cover related legal fees and claims made by customers because of you unknowingly selling them a faulty vehicle part. If a customer drives off in their new car and there is an issue with the handbrake for example, you could face legal action.
If you have been negligent in your motor vehicle repairs, Service Indemnity can be used to pay for claims brought against you by a customer. Put simply, Sales & Service Indemnity can act as a safeguard around expensive lawsuits.
Directors’ & Officers’ (D&O) Insurance
For Directors or Officers (key stakeholders) within your business, D&O Insurance can meet the cost of any claims made against them. Claims for mismanagement or alleged wrongful acts can be made by third parties leading to your personal assets (property, car, savings) being at risk.
Engineering Inspection Insurance
Equipment including ramps and lifting tables, pressure systems, and air conditioning and ventilation systems will need regular safety inspections. This insurance covers mandatory inspections to keep you compliant with health and safety regulations.
Money Insurance
Protects against theft of money kept on your business premises.
Common mistakes Motor Traders make
Some of the most common insurance mistakes include:
- Underinsuring stock value
- Using personal insurance for business activities
- Failing to update driver details
- Ignoring policy exclusions
- Choosing cover based solely on price
Adequate protection should always take priority over securing the cheapest premium.
Don’t put your business at risk. To discuss Motor Trade Insurance with our experts and the type of policy that would fit your business, contact us today.
Contact us: lloydwhytecommunity.com/contact/