Motor trade

The benefits of motor trade insurance in the UK

The key benefits of motor trade insurance for UK traders: cover for vehicles, road risks, public and employers' liability, tools and stock, and lost income.

Motor trade insurance is a specialist type of cover for people and businesses that work with vehicles in the UK. It brings together several kinds of protection that a motor trade business may need. Here are the main benefits.

Cover for vehicles

Motor trade insurance can cover the vehicles involved in your business. Whether you are a car dealer, a mechanic or run a garage, a policy can protect your stock, your customers' vehicles and your own vehicles against risks such as theft, damage, fire and accidents, depending on the level of cover. That leaves you free to focus on running the business.

Road risks cover

A major benefit of motor trade insurance is road risks cover. It is particularly relevant if you sell, repair or service vehicles, as it covers you or your named drivers when driving trade or customer vehicles on public roads for business. That includes test drives, collections and deliveries, where an accident could otherwise lead to a liability claim against you.

Public liability insurance

Running a motor trade business means dealing with the public, customers and suppliers. Public liability insurance covers claims from third parties for injury or property damage that happens during your work. That could be a customer who slips on your premises, or a vehicle damaged through negligence during repairs.

Employers' liability insurance

For motor trade businesses with employees, employers' liability insurance is a legal requirement in most cases. It covers claims from employees who are injured or become ill because of their work. GOV.UK says the cover must be at least £5 million, and you can be fined £2,500 for every day you are not properly insured.

Cover for tools, equipment and stock

Motor trade policies can include cover for tools, diagnostic equipment and stock such as spare parts, against theft, loss or damage. This helps you repair or replace what you need and keep working after an incident.

Business interruption cover

Some combined policies include, or offer as an extra, business interruption cover. If an insured event such as a fire or flood stops you trading, it can help cover lost income and ongoing costs such as rent and wages while the business recovers.

Conclusion

Motor trade insurance gives traders cover for vehicles, road risks, liability to customers and staff, and, with a combined policy, tools, stock and lost income. The right mix depends on what your business does, whether you work from premises and whether you employ staff.

Kompare works with specialist motor trade brokers. You fill in a short form and a specialist, FCA-authorised broker from our panel contacts you about quotes for road risks or combined cover. Find out more about motor trade insurance or read how we work.