What is a Motor Trade Insurance?
Motor Trade Insurance is specially designed for businesses relating to buying, selling, repairing, and servicing of vehicles. It is for any company that earns through cars like vans and motorbikes.
Read on to learn more about why you need a Motor Trade Insurance. We will also discuss what types of insurance policies usually fall under this.
Who Needs a Motor Trade Insurance?
Motor Trade Insurance is very important for car and motorcycle owners and dealers. Other than these, it is also useful for auto repair and service shops, mechanics, and even scrapyards!
Other industries that need insurance are auto electricians, panel beaters, and spray painters. Vehicle ad sign makers also need insurance. This type of company covers the body of the car with advertising material.
Upholsterers and detailing shops, mechanical specialists need insurance coverage. Also machinery companies, most especially because they have expensive machines and equipment.
Another sample business are those who perform testing and diagnostic services. They provide roadworthy, performance testing, and dyno tuning. These may also include those who provide emission testings.
Those who are also into buying and selling of spare parts can also have motor trade insurances.
Valet parkers also need this insurance. Imagine, this job entails parking expensive cars in cramp parking spaces! How about car jockeys who move one vehicle from one place to another? Yep, they’re included too in the list. Lastly, it can also be for vehicle recover agents who recover broken down vehicles.
Insurance is important for big, small, or even part-time motor company traders or service providers. Whether you are home/garage based or mobile or a in a commercial place, get insurance!
Uses and Coverage of Motor Trade Insurance
A motor trade insurance covers properties that include the building or structure itself. It also covers the contents and stocks inside the premises.
Important elements covered are business interruption and theft or money related unfortunate incidents.
Essential insurance coverage is public and product liability. This is for the main reason that it covers faulty workmanship. Not that we wish to have our services fail. But it will always be good for you to be protected in case one of your workers was not able to do the job correctly. To further explain, the product liability insurance covers faulty workmanship and resultant damage.
It covers what happens to the vehicle while it is under your care and control. Most especially if it gets damaged and can cause harm to others with an unsatisfactory job done. There are serious implications in terms of liability for faulty work. Hence, being covered in this aspect should be on top of your priorities.
If you are using special machines and equipment, insurance will cover for machinery breakdown. This is important for you to ensure the continuity of your business. It gives support while your machine is not yet fixed.
Another important benefit is covering the actual vehicle while it is on your premises and even if you test drive it. Anything can happen inside your yard. What more if you test drive a vehicle! Accidents can happen on the road. It may not be necessarily your fault. But it will be ideal to protect your company for any accidents that can happen.
Last, but not least is workers compensation. This is for any untoward events, such as accidents or injuries while at work.
Features of Motor Trade Insurance
There are many features of a motor trade insurance. In getting one, make sure you are fully covered and protected from potential harm to your business.
- Fire and explosion
- Acts of nature – lighting, and earthquake
- Faulty workmanship
- Vehicle inspection and evaluation for roadworthy certificates and safety reports
Note that while above may be the general key features, you can always customize. Tailor fit your insurance to meet your business needs. Regardless of size or business model, you can work out a good insurance package that covers your entire business.
Risks and Possible Repercussions for Businesses without Motor Trade Insurance
We know that vehicles are expensive, especially the higher-end models. It becomes even more expensive for limited edition cars, vintage, or customized vehicles. If a client leaves their car with you, they expect the utmost care and best service. But what if the reverse happens? Here are some risks that can possibly happen.
- Accidental damage to the car
- Robbery of the vehicle (whether parts or the whole vehicle)
- Vehicle repair was unsatisfactory and faulty that led to harming owners or other people
- Workers get injured while at work or worst-case scenario, die (possibly due to accidents inside your premises or on-road tests)
- Catastrophes or calamities
If any of these happen, who pays and shoulders expenses? The owner. This may be very expensive. The costs may be so high that it can potentially hurt your entire business and financials.
If there are lawsuits or reaches court, it can cost a huge chunk of your fortune. The examples are grave situations that stress the need for motor trade insurance. Don’t wait for any of these unfortunate incidents to happen. Invest in a good motor trade insurance.
Talk to a credible company that can give you the best package, such as Matrix Insurance. We are the leading motor trade insurance in Perth, Australia. We have many years of experience in the insurance industry. We are passionate and committed to providing a positive experience in getting insurance.