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Motor Trade Insurance – Basic Types

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motor trade insuranceAre you considering going into the motor trade business? One thing you need to understand before starting up any business are your insurance options. Although many people don’t realize it, private motor insurance fundamentally differs from the motor trade insurance. A motor trader has to be insured while driving and working on multiple vehicles. I’ve asked experts from Unicom Motor Trade to give me some basic information on motor trade insurance options. Here’s what I’ve found out!

In general, motor trade insurance comes in several versions and they can all be broken down in these groups:

1. Roadrisk Only Insurance – For a motor trader this type of insurance is a must have. It covers only the driver and it comes in 3 options, similar to regular vehicle insurance policies:

  • Third Party Insurance – It’s the minimum cover level for anyone operating buying, selling, driving, repairing, cleaning, valeting or servicing vehicles for profit. This type of insurance covers repairs to third party’s vehicles if the damage sustains.
  • Third Party, Fire and Theft Insurance – Covers everything mentioned above, but the vehicle is also insured in the extent of a theft or a fire.
  • Comprehensive Motor Insurance – Everything as above mentioned insurances, plus the motor trader’s vehicle is covered for any accidental damage sustained.

motor trade insurance2. Motor Trade Liability Insurance  – Since a road-risk only policy doesn’t cover you if, as a result of a negligent action, an individual is injured, for this situation you’ll need either employers’ liability or public liability insurance. Basically, liability insurance indemnifies you from accidents to the general public or your employers. Sales and service liability will indemnify you for third person’s injuries, as well as the damage of their property as a result of repairs and maintenance, inspection, testing, servicing of the vehicle, as well as the selling or buying of any product associated with the motor trade industry.

3. Combined Motor Trade Insurance – This is undoubtedly the most comprehensive solution in terms of protection for you and your new business. The most common combined insurance policies include employee, public or professional liability or a combination of all three. Depending on the type of the cover you choose, combined motor trade insurance covers business premises, vehicles in transit, tools, money, contents and engineering inspection.

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