Motor Trade Insurance
How do you know what cover you need?
It is your choice what cover you decide to take, however, it’s important to note that some insurance is compulsory by law.
The more you have covered, the more expensive it is. However, a brief summary of cover may help you make a more informed decision.
Premises Cover – This is cover for the building itself. If you rent the building this may not be needed but please check with your landlord first.
Stock Cover – This covers your stock against insured threats. Stock may be divided into different categories as some stock is deemed higher risk than other. For example Leather jackets are considered to be a high theft risk.
Business Interruption – This gives you cover if your normal trade is affected by an insured peril such as fire or flood. Standard cover is for 12 months but you can choose a longer period if you think it necessary.
Public Liability – This cover gives protection should a member of the public suffer an injury or damage to their property whilst on your premises, for example, a slip on a wet floor.
Servicing Liability / Defective Workmanship – This will offer cover for accidental bodily injury or property damage, subject to the policy conditions.
Employers Liability – This is required by law if you employ staff. This covers you if a member of staff has an accident at work and wants to make a claim against you.
Engineering Inspection – Recommended if any lifting gear is used by staff. This will give your workshop a clean bill of health for any plant that requires inspection. Some plant and in particular lifting gear are required to be inspected at least once a year. You must also comply with Lifting Operations and Lifting Equipment Regulations 1998 (LOLER).
Accompanied & Unaccompanied Demonstration – This will enable you to allow a potential customer to try a vehicle before purchasing.
Loan and Hire – This allows you to loan or hire a vehicle to a customer who has brought their own vehicle in to you for service or repair.
Road Risk – This gives cover for vehicles used on the road. They may be your own vehicles or you may road test customers’ vehicles. Insurance for vehicles used on the road is compulsory together with ensuring the motor insurance database if kept fully up to date.
Disclaimer: the sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication.
You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Devitt accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.