What is Traders Insurance?
Motor Trade Insurance, also known as Traders Insurance.
Traders Insurance, is a highly versatile insurance policy that aims to effectively cover businesses and their employees. This will cover any vehicle that is in your ‘care, custody or control’ in addition to any of the business’ own vehicles. The insurance will cover the business and the employees who drive or work on the vehicles whether it be company owned or customer vehicles.
This a highly flexible insurance policy providing a great benefit for rapidly changing business structures; for example, instant coverage for new recruits.
Do I need this?
In order to find out if you need traders’ insurance, you must ask one specific question: do you have care, custody and control of the vehicle? If the answer is’ yes’, the likelihood is that you will require Traders Insurance.
Any business that is left with the care, custody and control the vehicle of a customer should take out Traders Insurance in order to protect themselves from any consequences that may occur such as damage to the vehicle. As the business is now care, custody and control of the vehicle, the owner’s insurance does not provide coverage for the business. By taking out Traders Insurance, protection for both the business and customer is guaranteed.
What businesses does it cover?
The cover generally refers to an insurance policy offered to people working within the car industry. Examples for the different types of businesses that Traders Insurance include but are not limited to:
- Breakdown and recovery firms
- Car valet companies
- MOTs and servicing garages
- Vehicle delivery businesses
- Vehicle sales businesses
What does Traders Insurance cover?
At its basics, the policy provides cover for your vehicles and any vehicle under your care, custody and control. Any and every aspect of your business can be covered with this insurance from theft to damage and collisions. In addition to this, you can also protect your premises for theft and malicious damage. As Traders Insurance is a highly flexible type of insurance cover, it is adaptable to almost all types of scenarios where they specifics of the insurance policy can be tailored to you and your business’ individual needs and specifications.
The policy can be tailored to include additional coverage such as employers’ liability insurance, premises insurance and public liability insurance.
Road Risk Only and Combined Cover are 2 types of Traders Insurance that are usually offered. A Road Risk policy is primarily aimed at small businesses or those who operate from home. Whereas Combined Cover can cover additional aspects such as business premises and equipment suitable for larger businesses.
As with all insurance, Third Party Only, Third Party, Fire & Theft, and Comprehensive cover is available offering different levels of protection.
What factors should I consider?
Vehicle value.
Payments made under this type of insurance are typically made from the trade value of the vehicles involved. It is worth considering if the pay-out from the insurance will cover the full cost of the vehicle in question.
Trading from premises
You may wish to consider what is included in your traders’ insurance and what is necessary to be included in the insurance policy. It is important to note that if your vehicles are kept at your business premises, additional coverage may be needed.
When operating a business, you may also want to consider Public Liability Insurance, Product Liability Insurance and Employers’ Liability Insurance.
What can we do for you?
We can provide affordable insurance to suit you and your business’ individual needs.
For specialist advice regarding Traders’ Insurance, please do not hesitate to get in contact with us through email, info@evansandlewis.co.uk , or through phone call 01792 660590.