The Different Types of Motor Trade Insurance
Motor trade insurance is essential if you are involved in buying, selling, maintaining, or repairing automobiles. The cover is also necessary if you use vehicles such as vans and motorbikes in your business. It is impossible to predict when an event that could threaten your business operations will take place, making the cover necessary to avoid such an occurrence. Motor trade insurance cover offers flexibility, and that means you can tailor it to fit into your business requirements easily. As such, there are various options that you can choose for your business needs and some of them are highlighted next.
Those in the business of buying and selling vehicles, fitting and tuning are required to purchase the third-party only insurance cover as a legal requirement to conduct their operations. The cover is basic and caters for third party injuries, property damage, or fatalities that may result from vehicles that are connected with the business or business owner.
Third-party fire and theft offers the same coverage as third-party only insurance, in addition to cover for damages that result from theft or fires of the vehicles connected to the trade.
You can also purchase comprehensive cover, which has aspects of the two mentioned policies above, in addition to coverage for the accidental damage of any vehicle in the ownership or possession of the insured. The three insurance types form what is called the road risk type of cover that is meant to protect a business owner from looses that may result if anything happens to its vehicles or those left in its premises by clients.
Liability cover, on the other hand covers you for any type of injury that could befall your customers or damage to their property due to your negligence or that of any person in your premises. An injured client may sue for property loss, lost income, legal costs and others. Such incidents are common, especially where clients get injured when leaving auto repair shops where they had taken their vehicles for repairs or other kinds of adjustments. In the absence of liability cover, your business could face bankruptcy if the compensation to such a party is colossal.
A combined motor trade insurance cover offers the most form of financial protection to a business entity. This cover suits a business that has a showroom, garage, MOT center, or forecourt. In addition to covering vehicles, all the equipment, tools, cash, and other items are covered by the combined motor trade insurance. So, this cover is the ultimate protection that you can provide for your motor trade business operations. If you purchase this cover type, you will get peace of mind in the knowledge that nothing could interrupt your business activities.
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