If your business is involved in the repairing, handling, or distribution of vehicles, it’s imperative you consider motor trade insurance. Insurance may prevent disastrous financial consequences in the case of car accidents and other issues involving your company. Unfortunately, many business owners and managers are unaware of the helpful options available to them. Hence, here’s everything you need to know about insurance options for motor trades.
What’s Best About Insurance for Motor Trades?
Motor trade cover is insurance specifically designed for businesses that deal with vehicles as a core function of their business model. The protection applies to a range of different businesses, such as car resellers and repair garages. These businesses are incredibly vulnerable should they face accidents and issues regarding the motor vehicles that they handle, especially considering most cars are worth at least a few thousand pounds. Motor trade policies cover a whole range of common scenarios faced by companies that deal with vehicles, providing peace of mind for all stakeholders.
Cover from Flooding, Fires, and Other Natural Occurrences
Natural occurrences such as flooding, hail, and forest fires are all included within most policies for motor trades. Many businesses that have their vehicle stock in open and vulnerable areas, such as car dealers, will face disastrous consequences during situations such as flooding if they don’t have insurance. It’s important to remember that it only takes one bad incident such as flooding to completely financially ruin a business that relies heavily on their vehicle stock. With this in mind, getting trade insurance that covers these natural disasters is imperative.
Cover from Employee Dishonesty
Consumer protection laws are expanding and becoming increasingly complex, larger motor vehicle businesses without coverage from employee fraud and dishonesty are incredibly vulnerable. Motor trade policies cover incidents where an employee has lied or committed fraud on behalf of the company. Situations such as a sales representative of the business using unethical tactics to trigger a sale can lead to legal action under legislation such as consumer protection laws. Without coverage in these scenarios, legal fees and other forms of compensation may quickly bankrupt a vehicle company.
Complete Vehicle Value Payouts for Claims
Motor trade policies are specifically designed with businesses in mind, meaning payouts for claims are different from policies for individuals. Generally, the payouts determined for vehicle insurance for individuals are much lower than those with trade insurance. Depending on the insurer, companies may agree on a very high benchmark regarding how to determine the lump sum payout for a claim. For example, an agreement that uses resale value instead of depreciated book value for claims involving vehicle assets is possible through these policies.
How to Choose the Right Motor Trade Insurance
There are plenty of reputable providers of motor trade policies, so it’s recommended that you shop around. Generally, you should focus on finding an insurer that has policies that have the highest synergy with your business model. Some plans are better suited to car resellers while others for repair garages. Now that you understand the importance of this kind of insurance, it’s essential you take the necessary time to find a policy that’s most beneficial for your business.