Motor Trade Insurance
Motor trade insurance will cover your business for vehicle sales and servicing, motor mechanics, car valets, breakdown services and more.
Motor trade insurance is a common and frequently used insurance for businesses including second-hand car dealers, mechanics, breakdown recovery firms, scrap, salvage and vehicle dismantlers and more. If yours is a motor trade business, we can cover you.
Motor trade insurance will cover your businesses and your staff to drive or to work on company or customers’ vehicles. With this insurance, flexibility is key and for any garage it is essential that any member of staff can drive any customer’s vehicle.
This insurance policy can also protect your business against accidental damage or other problems that result from mechanics working on a vehicle.
A Typical Package
A typical Motor Trade insurance package will include the following covers:
Buildings insurance covers your property in terms of the structure and the permanent fixtures and fittings.
If you own plant and equipment and it is damaged, stolen, or is at risk from fire or any other losses, whether on your own premises or in transit, ‘Own Plant and Equipment Insurance’ will provide essential cover against these potential risks.
If you’re hiring in an item of plant or equipment you will need ‘Hired in Plant and Equipment Insurance’. Many hirers won’t hire to you unless you have proof of this cover. However, if you only hire plant and equipment occasionally, the Allied team can discuss short-term measures for the smaller periods of time when your cover is needed.
Stock in trade insurance covers your stock if it is stolen, damaged or destroyed, and pays out the money to replace it.
Business interruption insurance provides cover for loss of profit because of a material damage claim at your premises and the following interruption to the day to day running of your business.
You are covered if you loan and hire courtesy vehicle used by customers while their vehicles are in for repair.
Trade plate insurance cover allows you to register all the trade plates that you own so that vehicles bearing your trade plates are covered in the event of an accident, on a test drive or otherwise.
Defective workmanship provides protection against damages and legal costs that may arise as a result of claims from any person, other than employees, who suffer an injury or damage to their property, due to Defective workmanship.
Wrongful conversion cover covers you if you purchase a vehicle from someone who is not the true owner.
Road risks provides comprehensive, third party fire and theft, or third-party insurance cover for vehicles in the business custody or control, loan and hire extension for courtesy vehicles used by customers while their vehicles are in for repair, accompanied and unaccompanied demonstration use for vehicle sales outlets, and cover extension for spouses and family members.
If you or your business could face legal disputes including employment and contract disputes, tax investigations, or you need a legal defence, you should consider legal expenses insurance to protect you against potentially significant costs arising from a variety of legal disputes.
Premises insurance protects your business for damage to the buildings and contents of the business, for example stock and machinery.
Frequently Asked Questions
We have tried to answer some of the most common questions we get asked below.
I have 30 members of staff in my company who all drive customer’s vehicles. Are they covered?Yes, motor trade policies are designed to be flexible and will ensure that all staff who need road risk cover are provided for in the policy
I specialise in repairing high volume vehicles. Do I need to advise my insurer?Yes. There is very often a limit on the policy for each individual vehicle, so you must advise insurers if anything over this limit requires cover.
If my garage is broken into, would I be covered for the theft of my customers vehicles?Yes, but you must be very careful in observing the conditions applied by insurers regarding to the storage of customer’s vehicles keys.
Our business is going to start paint spraying, do I need to inform insurers?Yes. The activity of paint spraying attracts different risks and insurers will often stipulate certain types of equipment that can be used. The use of ovens, for example, will often require flameproof electrics etc, as well as extraction systems to ensure no build-up of fumes and potential fire hazard.
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