You’ve probably heard of motor trade insurance, and indeed, you need it if you are operating as a tradesperson or business owner dealing with different kinds of vehicles. But why exactly do you need motor trade insurance, what can it do to protect you and your business or trade, and how can you choose the right one according to your needs? The following is your best guide to motor trade insurance if you are a tradesperson or business owner.
- The basics
Motor trade insurance is essentially the name for the kind of insurance coverage or policy you need if you are involved in the vehicle industry. Whether you are involved in the buying and selling of vehicles to make a profit as a tradesperson, fixing vehicles for a living (as a mechanic or mobile mechanic), cleaning vehicles, moving vehicles (as a car jockey or valet), or recovering vehicles if they have broken down (as a vehicle recovery operator), you need motor trade insurance.
- The types of coverage you can get with motor trade insurance
There are basically two kinds of coverage you can get with motor trade insurance. The first is road risk cover only, and the second is combined coverage. Road risk cover is often for those who are operating from home or have a small business which has minimal profits and assets. Some examples include mobile mechanics as well as car salesmen who run their trade from their residence or operate a mobile business enterprise.
- More on road risk and combined cover
Road risk cover will usually give you coverage when you are driving any vehicle, whether it’s a vehicle you own or a vehicle you have in your inventory or stock, and it gives you cover whether you are driving it for trade purposes or personal use. Road risk cover can also provide you with coverage when it comes to the vehicles of your customers if you have to drive them due to the work or business that you do.
A combined cover insurance policy will not only cover your vehicles and the vehicles you drive, but it will also cover your other assets, such as your buildings, your tools and equipment, and your building’s contents, as confirmed by a popular motor trade insurer like Tradex. It can also cover your financial assets, e.g., your money. As with regular car insurance, combined cover can also come with three coverage levels, including third party, fire and theft, third party only, and comprehensive coverage. As you may already know, each level of cover will come with its own protection level based on your needs.
- Additional coverage
You can also take advantage of additional coverage when it comes to your motor trade insurance policy, and this includes employers’ liability, product liability, and public liability. Public liability cover will protect you against claims made by individuals for property damage or personal injury. Product liability, on the other hand, protects you on any kind of work you do or parts you fit in case these parts are faulty. Employer’s liability, meanwhile, serves as a legal obligation of any business which has employees or staff, and it covers you in case of illness or personal injury to your staff whilst they are doing their work.
Do you know your car insurance rates for young drivers? If not, it’s time to check. Car insurance rates for young drivers can be quite expensive, so it’s important to shop around and find the best deal. At moneyexpert.com, we want to help you get the best policy for your needs.
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