There will be times when you need to drive cars not yours if your job involves working in the car industry. You might need to move stock in a car dealer or test drive a customer’s vehicle after it has been serviced or maintained.
It is clear that driving cars in this way for business purposes is not permitted under a private motor insurance policy. However it would not be practical, if any, to add vehicles to any type policy during normal working hours.
Motor trade road risks insurance is a special type of commercial motor insurance. This policy covers the Road Traffic Act and allows policyholders to drive any vehicle they wish to in the course and for pleasure, social, domestic, or business purposes.
A motor trade policy provides the most flexible coverage available, and nearly all schemes can be tailored to specific motor trade road risks.
Road risks insurance is different from private motor premiums, where the car’s declared value is used to rate. The trader can set the amount of coverage he wants to drive other vehicles, or the level of indemnity. This could range from five thousand for a mechanic or part time dealer to as much as a hundred thousands for a valet at a Ferrari Dealership.
A policy covering prestige cars and new car dealers would cover the cost to replace the vehicle, but also extends coverage for members of the public who are driving the car in company with a named driver. A used car dealer or mobile mechanic would need only basic road risk coverage with the possibility of an extension for tools. Motor traders need to be aware that there are many road risk policies. They should also be aware that some policies do not provide basic coverage.
A combined motor trader policy is required for motor traders who have premises like shops or forecourts. This policy is a simple policy that covers road risks and allows employees and named drivers to drive any vehicle. It also includes other potential risks such as property damage, liability, and personal injury.
A combined motor trade policy includes liability insurance. This covers your business against claims by members of the general public who have received services or parts from you or have been injured while visiting your premises.
Employers who have employees in workshops, garages or out on the roads with commercial vehicles or vans must have employers liability insurance. This coverage protects your motor business from claims by employees and staff in case of an accident at work or a claim against you in court.
Full motor trade insurance policies provide motor traders with buildings and commercial property insurance. They can insure garages, workshops and office contents.
You have the option of purchasing business interruption insurance to protect against catastrophes such as fires that could result in you losing all your stock. Or, you can purchase group personal accident insurance which covers staff members against sickness and accident.
Anybody who works in motor industry can apply to a motor trade policy. There are policies available for car dealers and car valets, as well as parking attendants, mechanics and body repair shops, garages, and motor parts shops.
All small businesses, including sole traders and those who work from home or on a part time basis, have motor trade coverage.