Plan Insurance Blog

The risks of not having the right Motor Trade cover?

Any motor trade business needs adequate motor trade insurance cover to protect their income, employees, customers, assets and potentially their premises as well. Without the right insurance in place, you could end up in financial trouble. The costs you may have to bear should something happen could amount to thousands.
Imagine if you have let your motor trade cover lapse and you don’t have any insurance. It has been raining recently. Whilst you’re all tucked up in bed during the night, a river close to your building bursts it’s banks. The water runs down the road and completely floods your premises.
This is an expensive clean up operation. Any vehicles and equipment that was in your building at the time could be ruined. It can take you a long time to get on your feet again. Never mind that you’ll also be completely out of pocket.
Another example is that a customer comes to drop their vehicle off at your workshop. As they enter the building they slip on some oil which hasn’t been cleaned up. They injure themselves.
A public liability claim is a claim that you are legally responsible for. A customer can claim for loss of income, medical expenses and even mental distress caused by the incident. Again money you have to pay out of your own pocket because you didn’t have the right motor trade cover.

What Motor Trade cover do I need?

Your motor trade cover should offer you adequate insurance that for all aspects of your business. The building you work from to the cars that you drive should have motor trade cover.
A complete coverage will protect your building from fire, storm damage and theft. This means any damage caused can be repaired quickly. This will enable you to continue working within the shortest period of time. This will reduce unnecessary additional expense.
If you have any staff then legally you are required to have employer’s liability cover. This cover protects you when a staff member injures themselves at work. It means you don’t have to pay them out while they are recuperating at home. The motor trade cover you arrange can include an employer’s liability policy.
Then there are your tools. Motor trade combined insurance cover with Plan Insurance can be arranged to protect all your tools and equipment against fire, storm damage and theft. Some of the tools you own are probably pricey to replace and without them you are unable to continue your daily work. Being able to replace them quickly is an advantage of having the right motor trade premises cover.
Public liability is essential, as already mentioned it can save you thousands in claims against you.
Lastly there is the need for you to drive customer vehicles to ensure repairs have been carried out correctly. You may also need to ensure it is the right car for you to purchase in order to resell. Motor trade cover gives you the ability to drive on the UK roads legally. Should an accident take place you can repair or replace your customer’s vehicle in a short space of time.