Motor trade public liability insurance policies are specifically designed to offer employers liability insurance and public liability insurance for motor traders. The level of cover one needs, however, depend specifically on the motor business one operates. Some of the policy covers available include commercial vehicle insurance, specialist car trade insurance, fleet insurance, motorcycle trade insurance and taxi insurance policies. Within these motor trade insurance groups, however, there are also other different levels of cover. Usually, the vehicle and the driver being insured in personal car insurance policy are detailed in the policy. For car traders policy or motor trade policy, however, the details are only given only for the names of the driver being insured and not the vehicle.
There are three choices in the motor trade insurance policy as with personal car insurance. These are the third party, third party fire and comprehensive.
This is considered the minimum requirement of insurance legally to drive a vehicle on any public highway. Third party policy covers areas such as damages, injury or loss to third parties i.e. other injuries to people and vehicles. Although your passengers are covered, the policy, however, does not cover you or your vehicle.
This policy covers damages, theft, fire and loss to vehicles under the custody or the motor trader’s control.
The comprehensive policy in addition to Third Party Fire and Theft covers for accidental damages to any vehicles that you own as a motor trader. If you got into an accident driving one of your customer’s cars, for example, the insurance company would only pay for the repairs.
NOTE: If the motor trader runs a garage or an MOT centre, repairs or services motor vehicles and bikes, and is a vehicle tuner or filter, third party motor trade insurance policies are a legal requirement.
If customers visit the premises where you operate your business from, you are therefore bound by law to offer a safe environment. Your motor trade insurance will cover against injuries incurred on your premises.
This cover comes in if for example an accident has been led by a failed part that you fitted and the client sues you. Here, your insurer may, in turn, sue the manufacturer of that part.
This cover protects your employees if you have any, while in the workplace.
Just like other types of insurance, your motor trade public liability insurance policy cover will depend on several factors. Your area of operation is one of the main factors considered. Another major consideration is the number of years no claims bonus you have on your private car insurance and your existing motor trade insurance if applicable. Other relevant information required in determining your trade insurance include; the period in which you have been into motor trade, whether you work part time or full time, whether you need cover for your premises, the type of liability insurance you need, whether combined insurance cover is required, whether you have had motoring accidents or convictions and in addition, whether there are other named drivers on the policy.