3 Businesses That Need Motor Trade Insurance

Elias Hubbard
October 1, 2019


If you’re planning to start a motor trade business there’s a very good chance you will be classed as having ‘care, custody or control’ of your customers’ cars when you’re working with them, in which case you’ll need motor trade insurance.

But what exactly is motor trade insurance, and which businesses need it? Below are three examples of companies that need some form of motor trade insurance.

Car Detailing or Valeting Businesses

If you’re planning to start a detailing or valeting business you may not be aware that you need motor trade insurance. But if you accidentally damage the interior or exterior of a customer's car, for example spilling cleaning fluid on the seat covers, or by scratching the cars paintwork, you’ll need appropriate insurance in place to deal with the risk of a liability claim.

Luckily you don’t have to pay over the odds for this insurance – you can use a price comparison site like this one to compare policies from a range of providers, making it more likely that you’ll find the right cover at a fair price.

Breakdown and Recovery Firms

For anyone who owns a breakdown and recovery firm, it is important to have recovery insurance. Recovery insurance is a type of motor trade insurance, and is specifically designed to meet the needs of your business. Due to the nature of the business and the number of risks that you might face, this insurance may not come cheap, so it is important to shop around. Types of cover that you can incorporate into your insurance policy include:

·         Carriage of vehicle cover – This covers you whilst you are transporting a vehicle. This may be included with your goods in transit insurance, so make sure you check this first.

·         Road risk cover – This covers you and your employees to drive cars that are not owned by you.

·         Business premises cover – this cover will pay for any repairs to your workshop or garage caused by an insured event.

·         Tools and equipment cover – This insurance protects any of the tools that you use in your garage and also any expensive recovery equipment you own.

·         Public liability insurance – this insurance covers you in case a member of the public gets injured because of your business.

·         Employers’ liability insurance – this is required by law if you employ staff.

Car Dealers

This is probably the most obvious one – if you’re planning to start a car dealership you’re going to need a good motor trade insurance policy to cover all the vehicles you buy and sell. Some important policy features to consider are:

·         Stock cover – this will insure your stock against a range of problems including theft.

·         Road risk – this insures you and your employees to drive cars that they don’t own. For companies that use trade plates, you will need to check that your insurance covers this.

·         Business interruption cover – If your business has to close on a temporary basis, this policy will cover any loss that you may incur.

·         Business premises cover – This protects your business from a number of risks including fire, flood and vandalism.

·         Equipment and tool cover – This covers any tools, machinery or equipment stored on the premises. It is important to check how much is covered, particularly if you have expensive equipment.

·         liability insurance – Any business that employs staff is required by law to have employers’ liability insurance, but you should think about getting public liability insurance too. This will protect you against any legal fees or compensation claims if a member of the public has an accident because of your business, for example they fall over tools left on the floor.

Motor trade insurance is an important requirement for lots of businesses, and there are many different types that will suit your business depending on your needs. It is always a good idea to shop around to find the best deals. Just remember, any business that works with cars will require some form of motor trade insurance. So, make sure you’ve got yours.


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