This article started out as a way to look at a motor trade company and tell the owner what kind of insurance they needed. While researching for the article, however, it was discovered that there are a lot more information about motor trade insurance.
The majority of the information was contradictory. Therefore, the purpose of this article is to explain exactly what motor trade insurance covers so people are less confused. Continue reading to get all the information you need.
Is cheaper better?
You might feel tempted to save some money by buying the cheapest insurance policy possible when you’re just starting your business. This might work in certain cases, but it is important to verify the coverage.
It is not worth buying motor trade insurance that is cheaper if you will need it later.
What is motor trade insurance?
1. Road risks – This coverage is crucial for companies as they will be driving on the roads. It will provide coverage similar to regular car insurance for companies. There are three options: third party, theft and third party fire. You can also choose a comprehensive coverage. The fully comprehensive coverage will protect everyone. It will protect your employees if they cause damage to company cars. You can also use this type of coverage if your customer crashes a car while they’re on a test drive.
2. Material or property loss – This policy covers your business property and any other property within the building like tools or machinery. It also covers cars that are not on the property. Good insurance policies will cover cars that are driven abroad as long as the vehicle is being used for business purposes. This type of insurance policy is best for small businesses. You should check the value of your property every so often to avoid any problems when filing a claim. If your policy covers only PS100,000. But your building was worth PS150,000 but your building was destroyed, you will suffer significant losses that could impact your ability to start a business later.
3. Business Interruption-This type of coverage will benefit you if your trades are disrupted for an extended period. While you may lose some of your earnings while you are unable to work, you can still make a claim for this policy to get some or all of the earnings back.
4. Employers Liability – If you are the boss you will need this type insurance. This insurance will protect you in the event of an accident at work or if your employees get sick. It will include all workers, including part-time and full-time staff, casual workers and temporary workers. By making sure your workplace is clean and well-designed, you can reduce the risk of getting hurt or dying.