A lot of people are clueless about how motor insurance works, very much like a dog behind the wheel of a car. And this shouldn’t really come as as surprise considering the huge variety of insurance policies available on the market and the fact that people just don’t want to be bothered by all these complicated procedures and protocols until they realize how important it actually is, especially in the motor trade industry.
This is why I will try to enlighten you on the subject with as few big words as possible. So, to put it simply, motor trader insurance is designed to suit the needs of individuals or companies that require some kind of cover in order to protect their personal or business vehicles. Vehicles insured with a motor trader insurance policy can be used on public roads and can be parked at home or on the business premises.
Whether you are a mechanic, a salesman, or a valeter, if you are working within the motor trade, you should be able to take a motor trade policy. The main difference between a traders policy and a private car policy is that with the traders cover, you are the one specified on the policy while with private cover you must also include the vehicle. The benefit of motor trader insurance is that you only have to take one policy that can cover you to drive multiple vehicles for your business and this includes customer vehicles. When choosing the type of traders cover, make sure you choose the right and get the most value for your money.
Road risk cover for example is a form of policy that provides you with cover for both vehicles owned buy your company and those that are in the possession of your business for various purposes. This, of course, will not cover any car you drive at any time, so you need to be careful regarding the vehicles you use under this policy.
Liability cover on the other side involves the customers coming to your place of work. Public liability means that if by any chance someone has an accident on your work premises, you will be covered for the claims they make against you. Without this type of cover, your business could suffer severe financial loss. Liability cover also includes defective workmanship that may lead to a claim. And finally, there is employer’s liability to provide cover against claim by employees that have suffered an illness or injury during the course of their employment.
If you want to bring the benefits of the previous policies or even add some extra areas to cover, you can go with a combined cover, which, as the name itself implies can cover more than just road risk and liability cover such as damage to buildings, stock of vehicles, tools, machinery, equipment, and much more.
These are just a few of the most common types of cover. It is always best to carefully consider what exactly you need and base your decision upon that.
source: http://www.guardinsurance.com.au/industry-profession/motor-trades-insurance/
