Do You Know What Motor Trade Insurance Covers?
6 September, 2013
Do you know what Motor Trade Insurance covers? At Footman James we have noticed that there is a lot of conflicting information around this subject, so to help you we have set out the facts below.
This can cover your buildings, contents including tools, machinery, plant, all other contents (office etc.) and vehicles both owned by you and in your custody at your premises, and can also be covered away from your premises including mainland Europe for All Risks (Fire, Theft, Flood etc.) including accidental damage.
We advise that it is important that you regularly check that your sums insured are correct as this may lead to problems if you make a claim.
Sometimes work needs to be done to a property to make it more suitable for use by the party that will be using it. This work falls under the designation tenant improvement. This type of work is typically governed by an agreement between property owners and whoever is going to use the property in question. So if the property was damaged the improvements (financial) would be reimbursed to you and not the owners of the property.
Business Interruption cover can help protect your business if you are forced to temporarily stop trading due to damage to your business premises or equipment. Revenue protection can offset your lost income, while additional trading expenses cover can give you the financial help you need to get your business back on its feet.
Money and Wrongful Conversion
Money and wrongful conversion cover can protect you against loss of money including on the premises during business hours, in transit, on the premises out of business hours, in a bank night safe at the business owners or authorised employee’s residence, Crossed cheques and non negotiable money.
Wrongful conversion is to protect you against loss following the purchase of a vehicle from someone who is not the true owner.
Personal Accident and Assault
Personal Accident and Assault covers bodily injury to you or your employees as a result of an accident caused by theft or attempted theft.
The policy provides protection for businesses against damages and legal costs that arise as a result of claims from employees suffering an injury or disease arising out of their employment. This can also include none paid staff such as voluntary works and persons placed on work experience.
Immediate members of your family who work for you do not count as employees for employers’ liability insurance this may differ in the case of a limited company. Casual workers, part-time workers and temporary staff do count, this can also include none paid staff such as voluntary works and persons placed on work experience.
Public Liability/Sales Indemnity/Defective Workmanship
The insurance policy provides protection for motor trade businesses against damages and legal costs that arise as a result of claims from any person, other than employees, suffering an injury, disease or damage to their property.
Cover can be sometimes be taken with or without Sales and Service liability. Sales and Service liability covers injury or damage to property arising out of your sales of vehicles and parts and your servicing or repair of vehicles.
Technically this is not an insurance cover but a legal requirement for you to make sure that certain items of plant and machinery are inspected on a regular basis, this cover provides a qualified technician to inspect these items when legally required.
Probably the most important element of a Motor Trade policy, this can be broken down into the following:
Third Party – you should note that this level of cover is the minimum legally required to allow you to drive on roads in the UK. Cover consists of injury, loss or damage to third parties such as people and vehicles. Cover is not provided for your own vehicle or you but your passenger would have cover.
Third Party Fire Theft – in addition to the cover provided by third party insurance you will also be covered for theft, damage by theft, or fire to any vehicles that come under the motor trader's custody or control.
Comprehensive – in addition to the afore-mentioned levels of cover, this level covers the vehicles that are either under your control or custody or your own vehicles in the event of accidental damage. For example, if you were to test drive a customer's car prior to purchasing it and you were responsible for an accident the insurance company would cover the cost of repairs to not only the other vehicle but also that owned by your customer (less the excess).
Cover can also be extended to include cover for Family and Friends, Demonstration including both accompanied and unaccompanied and loan vehicles.
Our Motor Trade Team can be contacted on 0121 561 6269, and they would be more than happy to answer any questions you may have, or you can find out more information on our Motor Trade page.