Motor Trade Insurance Key Features
- Covers fire, explosion, lightning and earthquake damage to vehicle stock at the premises
- Covers vehicles stock for theft from premises with various extensions available
- Extend your liability cover with motor trades-specific cover for things such as faulty workmanship
- Cover for vehicle inspection and evaluation if you undertake roadworthy certificates or safety reports
- Wide-ranging business insurance protection for your business under one policy
- Tailor your insurance solution to meet your business needs, regardless of size or type of business
Unique Risks Facing The Motor Trades Industry
Mechanics, Smash Repairers and associated industries face unique risks that need to be considered when designing an insurance package. Broadly, these risks relate to public liability, faulty work and protection for customers’ vehicles. Based on discussions with our existing insurance customers, we have outlined a few key questions that need to be considered when reviewing your motor trades insurance policy package.
Does your liability insurance include cover for faulty workmanship and resultant damage?
If so, is the sum insured adequate and does it allow for multiple claims during the year?
Does your liability insurance include cover for customer’s vehicles in your care, custody and control?
When was the last time you update sales figures with your insurer?
Test Driving Customer Vehicles
Do you have comprehensive insurance or are covered via an extension under your Public Liability insurance? If it’s the latter, are you aware that you may need to be at fault to lodge a claim?
Is the sum insured sufficiently to cover the replacement cost in the event you write off a customer’s vehicle?
Customers’ Vehicles at your workshop
Do you want your customers’ vehicles to be insured against theft, malicious damage, storm and hail damage while at your workshop waiting to be repaired?
This sum insured is often calculated incorrectly. This is a significant risk to your business as an under-insurance clause applies to this section, which can result in reduced claim payments.
The best way to overcome this is to provide your insurance broker with your Profit & Loss Statement so they can extrapolate the required information.
If you issue road worthies, safety certificates or valuations, do you have insurance in place to protect you against financial loss claims? Make sure you have professional indemnity insurance in your policy.