Everything You Need to Know About Vehicle Trade Insurance

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Everything You Need to Know About Vehicle Trade Insurance

Whether you own a single vehicle or a fleet, whether you are a private owner or work in the business of vehicles like testing, repairing, fitting, buying, selling, etc., you need insurance. The Automobile Insurance Act makes it mandatory for every vehicle owner or anyone who works with vehicles to have insurance.

However, which insurance would be the best for you is something that has to be decided based on individual requirements. For example, if you are a private owner, general insurance will work for you, but if your business and works are around cars and other vehicles, vehicle trade insurance is best.

A vehicle trade insurance covers a wide range of your business activities if you or your company provides services related to vehicles. Contact Surex Insurance for the best car insurance quotes in Edmonton.

Vehicle Trade Insurance

Vehicle trade insurance, or motor trade insurance, is a collective term comprising multiple independent policies. It comes in handy when you individually or your business provides various services to vehicles. These services may include:

  • Servicing
  • Buying and reselling
  • Valeting
  • Recovery
  • Tire fitters

Motor trade insurance can be tailored to fit the needs of your business, as all these businesses come with their occupational hazards. Having motor trade insurance will help you run your business in a peaceful and financially safe environment. With this insurance, your business is covered to work on or drive any customer or company’s vehicle. The cover may include only the owner, a select few employees, or the whole company.

Not having an updated and correct insurance is a punishable offense. It may attract penalties, license suspension, and in some cases, even imprisonment. These things can not only harm you financially but also affect your brand value.

What Does Vehicle Trade Insurance Cover

Even if you do not have to drive your customer’s vehicle regularly, some type of motor trade insurance is necessary to run your business smoothly and risk-free, with protection.

By the law, you are free to choose a single policy that lets you do your work with minimum risk. Broadly, under motor trade insurance comes in three types of covers.

Road Risk Insurance

If you or your business deals in any of the following

  • Driving vehicles on the road
  • Repairing or servicing customer’s vehicles
  • Trading cars
  • Operating an MOT station
  • Valeting, fitting, or tuning

then the law requires you to have third-party road risk insurance. It will cover you and your business in an unfateful event of injury, damage, or death due to any business-related vehicle. While third-party-only insurance is the entry-level insurance, third-party fire, theft, and comprehensive road risk insurance are also available that provide you extra protection.

Liability Motor Trade Insurance

If you employ people to service and repair customer’s cars, this policy fits best for you. This insurance can further be categorized as follows.

Product, Sales, and Service Indemnity Cover

This insurance protects you from any issues and claims due to flawed spares or work by employees.

Public Liability

If anyone gets injured on your property and files a claim, this insurance will protect you against such unprecedented expenses.

Employer’s Liability

If you have employed people in your business, the law dictates you to have employer’s liability insurance.

Combined Motor Trade Insurance

This is comprehensive insurance that protects you against any claims for road risk, liability, tools, premises, and content. No matter where you work from, home, or a dedicated workspace, this policy comprehensively covers you.

Personal Vehicle Insurance vs. Motor Trade Insurance

Personal vehicle insurance means that your vehicle is insured against risks like accidents, repairs, damages, theft, etc. It covers your financial losses in an unwanted event. As per the law, you need to have at least third-party liability insurance to avoid any penalties or punishments.

You need motor trade insurance if you are in a business that revolves around vehicles. 

  • For instance, if you are a mechanic or a reseller. General car insurance would not provide any cover in case you get injured while test driving a customer’s vehicle. 
  • Moreover, if any faulty spare installed in the car causes future inconveniences, it will not be covered in your vehicle insurance policy.  

On the other hand, if you have motor trade insurance, your complete business operation is covered. It is a flexible term so that you do not have to pay for services you do not want.

Which Trade Insurance Shall I Choose?

There are various types of trade insurance available and choosing one depends majorly on the nature of your business. For instance:

  • If you are a mechanic, you can opt for a combined motor trade insurance. As you work with expensive tools and equipment, driving and testing vehicles, this type of insurance will cover all the risks related to your workplace, including spares and premises.
  • If you are a vehicle reseller, road risk insurance will cover any risks regarding driving multiple vehicles for work. 
  • If you are in the valet business, road risk insurance and public liability insurance will cover a large portion of your business for risks. 

For every trade related to automobiles, there is different insurance with different parameters. You can add more value-added services which you think are necessary to provide you with overall protection from accidents.

Endnote

You cannot neglect any occupational hazards in a vehicle enterprise. You may receive faulty parts or equipment in your work, or any of your employees may be involved in unfortunate accidents at work. It may leave you open to any lawsuit or claims. Motor trade insurance protects you against all such risks. Be it damage to the vehicle, injuries, or faulty parts installed by mistake, motor trade insurance helps you with all settlements and claims.

Surex Insurance provides the best car insurance quotes in Edmonton. Visit Surex Insurance to know more about insurance quotes and guidance.