Road risk insurance is also referred to as motor trade insurance. Those having a motor trade or working in the motor trade industry need to protect themselves by getting a proper motor trade insurance which protects not only them but also their vehicles, customers, types of equipment and cash. Motor trade insurance covers every part of the business under one policy. You can work, manage the trade and also get covered for damages, collision, break-ins, and theft, etc.

Types of cover

The most important part of the trade insurance is to get the right cover. Each policy is tailored according to that business and its requirement. Some common types of cover:

• Road risks
  Road risk is a must for a motor trade policy. You can choose the level of cover you require. If you want to operate at a minimal expense then a third-party policy is the best for you, it provides you safety from fire and theft too. A comprehensive policy secures you from all types of collisions even if it is your employee who is responsible.
• Combined policy
  It is perfect policy if you operate from some premises. A combined policy will cover the cars from theft, loss or damage. It will give you provide full protection for your premises.
• Part-time policy
  If you work part-time, then a full-time policy does not make sense. With a part-time policy, you get a flexible cover that provides protection when you need it.

Additional cover that is provided by motor trade insurance:

• Public liability
  You are obligated to provide a safe environment to the customers that visit you when you operate from the premises. This is a concern when you’re working on customer vehicles. It is a good idea to get the cover to protect you from such claims.
• Employer’s Liability
  In addition to public claims, you have to think about employee claims. If an employee was injured or killed it could result in a huge claim if you do not have a cover.
• Legal liability
  This is needed if you have to fight a liability claim in court, the legal expenses add up very quickly. Breakdown Cover is a good idea when you work in motor trade and if you are transporting customer vehicles.

Also, there are some other things that you need to know about motor trade insurance:

• Insurers ask for a proof of trading; this is standard procedure.
• Anything and everything regarding the motor trade covered by the motor industry trade policy. But you have to be an active trader.
• Different insurer’s offer different indemnity levels depending on your cover (value of vehicle limits). It may also exclude some cars, like Ferrari’s. All vehicles have to be owned by you or your business partner or be used in connection with your motor trade business. All vehicles in your custody for more than 14 days require insurance.
• Combined motor trade insurance covers not only your vehicle and road risk, but also covers building damage, employers’ liability, goods in transit, public liability, etc.
• Coverage – Motor trade policy is no different from other businesses, a few special sections are added for the motor trade.
• Property Damage – Property or material damage, this covers your property such as machinery, plant, fixtures, fittings, hand tools, a stock of parts and consumables, etc.
• Business Interruption insurance – Ignore this cover at the risk of your safety. In very simple terms Business interruption will replace your income while your business premise is being repaired etc.
• Motor Trade liability insurance – The actual way in which liability insurance works is no different to any other liability insurance. The motor trade has different exposures compared to say the construction sector.
• Public and Employers Liability works the same as it does elsewhere, it covers your legal liability for negligence against a third party, or in the case of employers’ liability, against employees.
• Defective workmanship covers your liability for loss or damage to the vehicle that you are working on. Sales Indemnity provides insurance cover for losses resulting from a vehicle you have sold.
• Liability is possible depending on what you do in the motor trade – Money, Employers Liability, Goods in Transit and if you trade vehicles along with insurance products then Professional Indemnity would also be required.