Businesses that are in the motor trade are required by the law to have at least the basic type of motor trade insurance. This type of insurance is called Third Party Only or TPO. This will cover damages to the third party involved in case of a crash.
Another type of insurance for motor traders is Third Party Fire and Theft. It has the coverage that TPO offers but at the same time, it also covers you for any damage caused by theft or fire, as long as the fire is not by an accident that you caused. There’s also the comprehensive insurance that provides coverage on the third party and your side too, no matter whose fault it is. Here are the top reasons why you should consider getting motor trade insurance.
The law mandates it
As mentioned, getting motor trade insurance is required if you are in the motor trade business. You will be a lawbreaker if you do not get at least the recommended basic insurance and this may lead to unwanted problems with the authorities if they find out. It’s best to abide by the rules to prevent hassles in the future.
It’s needed for test drives
If your business involves selling vehicles, customers would most probably want to do a test drive to get a feel for the car’s performance. Not having the right type of insurance may cost you a sale because clients may not want to use their own insurance for test driving your vehicle. Demonstration insurance cover will provide the needed protection for this situation.
It will protect your stock of vehicles
Your vehicles are always at risk of theft and fire damage. Without the proper protection, you will end up with nothing if an unfortunate event happens. Stock vehicle cover is a type of insurance that will protect your stock of vehicles in case of fire or theft.
It will cover your tools
Being in the motor trade means that you will be doing some tasks or work that will involve the use of tools. For instance, replacing tyres or vehicle parts will require the use of these costly tools. They are also prone to wear and tear, and they may get damaged for some other reasons. If you use expensive tools, it’s best to get tool coverage too. As the term suggests, this will cover your tools in case they break or become damaged.
It will protect employees and people around
Liability cover will protect people that come near your business, in case an accident happens while they are around your premises. Employee cover, on the other hand, will provide coverage for your staff or the people that work for you.
A trusted motor trade insurer can help determine which coverage you should get to maximise your protection. Work with one that has a proven track record in the industry to ensure that you are getting the best option. Getting the right insurance will protect your business from damages and loss that may be caused by unwanted and unforeseen incidents.
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