An Overview Of Motor Trade Insurance
This class of insurance is the markets' answer to covering the needs of persons and companies involved in the motor trade business, where the terms and restrictions in regular private and commercial insurance policies do not allow for most efficiency in doing business.
Everyone from a one man business to large companies handling hundreds of vehicles may benefit from a insurance solution which is specifically designed to meet the needs of the motor trade. Traders and sellers of new and used vehicles, repairers, fitters, bodyworks, importers, builders and inspectors, all may find use for insuring as motor trade.
Once you decide you need insurance which is specifically for the motor trade, it is time to choose which kind of insurance will best meet your needs and demands. The general types of policies are Road Risk Policy, Liability Policy and Combined Policy.
Road Risk policy includes comprehensive cover third party only cover, third party fire and theft cover and liability insurance.
Third Party Only is the most basic Road Risk policy and only covers damages to the third party vehicle if the accident was caused by you. This is the minimum requirement for a road legal vehicle in the UK. Any damage done to the insurants own vehicle will not be covered in any way.
Third Party Fire and Theft is an upgraded Third Party Only policy which cover damage done to the third party as well as damages and loss incurred by theft or fire perpetrated by a third party.
Comprehensive Cover has the same basic coverage Third Party Only and Third Party Theft and Fire, but also covers extensive damage done to vehicle while in possession of the motor trader, as well as repairs resulting from this.
Liability policy covers liabilities that the motor trader may have to employees and customers. There is also cover for any products that the trader may carry in his vehicles, as well as cover for products in the motor trader's garage. Included in this category is: Product Liability Insurance, Employee Liability Insurance and Customer Liability Insurance.
Product Liability Policy covers damages done to public property while in the possession of the motor trader and protects against claims made of damages to property, which can be important if litigation is pursued.
Employee Liability Policy insures the motor trader with regards to his employees and any liabilities that may arise.
Customer Liability Policy likewise insures the motor trader against liabilities to his customers.
Combined policy covers just about all aspects of the motor traders business from "goods in transit", tools, machinery, business stop and many more aspects of the trade. It is a simple solution that also includes repair cover as well as road risk, and gives the motor trader maximum cover.
As with all other kind of insurance it is important the motor trader understands the individual benefits and limitations of each motor trade insurance policy before commitment by reading the terms and conditions or making enquiries with the insurance company if any parts of the policy are unclear.
About the Author:
Paul Headley is a specialist insurance article writer. Staveley Head are a leading UK insurance broker for
motor trade insurance
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