PART-TIME MOTOR TRADE INSURANCE

Guide on Part-Time Motor Trade Insurance

What You Need to Know on Part-Time Motor Trade Insurance*

Do you need part-time motor trade insurance to run a motor trade business or valet parking? If you handle customers’ vehicles part-time, in a garage or mobile tyre-fitting, anything could go wrong.

Having s traders policy could come in handy in case a car is damaged in your care.
A motor trader insurance policy can also cover your employees when handling vehicles.

Do you want to learn more about traders’ insurance?

This guide answers all your questions on this insurance cover.

What is motor trade insurance?

Motor trade insurance is an umbrella term for various policies that protect individuals and vehicles in the motor industry. Part-time motor trade insurance protects the business and who drives or handle vehicles owned by customers.

Apart from third-party liability, the insurance covers a vehicle sales firm for losses that may occur during demonstration, collection, or delivery.
Traders' insurance offers unlimited policies for businesses within the car industry. For instance, a self-employed mechanic may need protection since they are handling customers’ vehicles.

As long as the third party vehicle is in your care, custody, and control, you will be held liable for the loss. Below is a list of businesses that can be covered by traders’ insurance.

Car valet business
Vehicle repair firms
Car sales companies
Garage
Car delivery businesses
Scrap yards
Car repossession businesses

Types of traders’ insurance

Road risk

If you are a motor trader working from home or a small business premise, a road risk insurance cover is ideal.
The policy covers the few assets you have, including equipment and the cars in stock.
Therefore, you can drive vehicles in your possession and handle third party cars.
The policy is ideal for mobile mechanics and vehicle salespersons who run a private trade from their homes.
Whether you are using the vehicle for business purpose or personal use, the policy will take care of the liability in case of an unfortunate event.

Motor trade combined

Established companies, who operate from a business premise, require a comprehensive cover. The combined policy is designed to protect against loss within the building.
It covers the buildings, contents, your inventory, tools, and equipment. For each item, you get three levels of insurance, including third-party liability, which covers third parties who suffer loss or sustain an injury within your business premises.
The third-party, fire and theft insurance offers protection from damage due to vandalism and fire extending to third parties.
The comprehensive policy covers business property and everyone in the building.

What does part-time motor traders’ car insurance cover?

As earlier mentioned, traders insurance protects your business from loss incurred if a customer's vehicle is damaged in your custody.

Every motor trader requires the following policies when handling commercial and customers' vehicles.

Third-party liability

Accidents happen, and when they do, it could involve a member of the public.
You are liable for the injury to a third party if the crash was your fault.
The third-party liability policy is designed to cover such losses.

Just like in private vehicles, you cannot operate a part-time motor trade business without the cover. It is a mandatory legal requirement.

Third-party, fire and theft

Apart from the third party liability, the traders’ car insurance cover includes the loss incurred by third parties due to a fire in your business premises.

The policy also takes care of damages and loss of your customers' vehicle due to theft.
Covering the cost of damages and loss of a third party's property is expensive.
It could put a dent in your business finances.

Therefore, it is prudent to have a policy in place in the event of a loss. Remember this policy does not provide cover if the damage was your fault.

Comprehensive policy

The policy provides the third party, fire and theft cover and other additional insurance covers.
Third-party and third party, fire and theft policies are the most basic covers in traders' insurance.
However, if you get a comprehensive plan, it will cover third party liability and other extras.
It also covers losses resulting from damages that were your fault.

Some of the additional products you may get include:

Employers’ liability insurance

Whether you run your motor business from home or have a business premise, you need an employers' liability cover if you have staff.

Even if you have one employee, it is mandatory to have a cover.
The policy protects your employees in case of accidents or injury when working for you.

Public liability

Business premises pose certain risks to visitors.

With tools lying around, guests can trip or sustain various injuries for mishandling a piece of equipment.
If you do not have motor trader public liability insurance, you could incur hefty fees paying for the damages.
Public liability insurance covers injuries and damages to members of the public within your business premise.
Even if you are self-employed and do not operate from a business building, the policy is useful. For instance, a member of the public could sustain injuries while you are doing your work.
Even if it is on the side of the road, you will still be held responsible.

Product liability insurance

Sometimes a customer’s vehicle sustains additional damage while you are working on it. The product liability insurance comes in handy and can be added to your part-time motor trade insurance policy, if you ask.

Business interruption insurance

If your business building sustains a severe loss that makes it inhabitable, you stand to lose income from the business.

To prevent loss of revenue, you should consider including the business interruption cover in your policy.

Do you need a traders’ insurance cover?

You need a traders’ insurance policy if you are operating a motor trade business, simple.

Irrespective of whether you conduct the business from home or a premise, it is a legal requirement.
However, not everyone qualifies for a traders' insurance policy. Before you get the insurance, you must provide evidence of the existence of the business.
It could be receipts for purchase of vehicles, or spare parts if you work on repairs.

There should also be proof that you deal with several cars.

How to get traders’ insurance

While there are several motor trade insurance online companies, do not settle for any without proper consultation. Cheap part-time motor trade insurance could provide inadequate protection.

However, it does not mean you go for the most expensive.

While it may cover a range of losses, you may be wasting money on policies you do not need.
To get the best insurance deal, you should compare motor trade insurance policies.
You can speak to a specialist for advice. You also need to have a description of vehicles in your possession and the total number of employees and other properties within the premises.

With this information, you can get a motor trade insurance quote.

How much does part-time motor trade insurance cost?

The cost of a part-time motor trade insurance varies depending on the insurance company.

Therefore, you should compare motor trade insurance quotes before making a choice. When running a business keeping the expenses down is a top priority.
However, cheap motor trade insurance may not provide adequate cover. That means you will still incur extra money in legal fees. Fortunately, you can lower the cost of traders insurance.

Besides comparing the motor trade insurance online, you can increase your policy excesses.

This will keep the cost of premiums low.

If you provide evidence that you are running a legitimate business, it puts you a step closer to getting the perfect deal.
Putting security measures in place will also help to reduce the cost considerably.
Do not make a hasty decision when selecting a traders' insurance for your business.
Shop around and get a motor trade insurance quote for comparison.
Only settle for the policy if it provides adequate protection at minimum cost.