Many people starting as a professional in the motor trade industry may have burning questions surrounding one particular topic: What is motor trade insurance and why is it necessary?
First and foremost, this type of cover provides a vital safety net for businesses operating within this sector, given that the motor trade industry is unfortunately exposed to a high level of risk daily due to the nature of the work involved. Therefore, this specialised insurance plays a pivotal role in protecting businesses, their assets and their customers.
In this article, we delve into the function of motor trade insurance, exploring its significance and which professions in particular benefit from it most.
What is motor trade insurance?
Motor trade insurance is a comprehensive form of coverage designed to protect businesses operating within the motor trade industry against an array of potential risks. These risks can encompass everything from accidents involving vehicles to damage or theft of valuable stock.
One of its primary functions is to safeguard the financial well-being of businesses involved in this dynamic industry.
Types of coverage
- Third-party: This basic level of coverage protects against claims from third parties for injury or damage to their property caused by the insured business
- Third-party fire and theft: In addition to third-party coverage, this option includes protection against fire damage and theft of vehicles
- Comprehensive: This is the most extensive type of cover, which includes all of the above, along with accidental damage to vehicles owned by the business.
Motor trade insurance also offers add-on options like public liability and employer’s liability coverage, which are invaluable for businesses dealing with the public and employees.
Legal requirements
In Ireland, motor trade insurance is not simply a smart choice for businesses – it is a compulsory type of cover required by law. Operating without adequate insurance is not only risky but also comes with severe penalties, including fines and even prosecution in extreme cases. Compliance in this area is essential for the financial and legal security of your business.
Who needs motor trade insurance?
Several professional groups require motor trade insurance to carry out their work in keeping with legal and safety requirements:
Vehicle sales and car traders
Businesses involved in the selling of cars must be covered to protect their valuable inventory, staff and customers. Furthermore, motor trade insurance provides liability coverage for test drives and safeguards against theft or damage to vehicles on the premises.
Servicing and breakdown services
Motor trade insurance is particularly relevant for those working in the areas of motor maintenance, repair and breakdown services, given the potential for serious injury or fatalities resulting from working underneath inadequately supported vehicles. This type of cover also offers protection in scenarios where customer vehicles may be damaged during repair or servicing.
Valeting services
Companies offering valeting services can benefit from motor trade insurance, which covers potential damage to customer vehicles or equipment used in the valeting process.
Other professionals
Freelancers or self-employed individuals in the motor trade can also benefit from bespoke policies that are specifically tailored to the needs of the provider in question. These policies can cover a wide range of activities, from mobile mechanics to home-based car sales, ensuring that professionals are adequately protected.
How to choose the right policy
Before choosing your motor trade insurance policy, there are a few important boxes to be checked:
1. Assess your needs
Evaluate the specific requirements of your business. Consider factors like the size of your inventory, the number of employees, and the nature of your operations to determine the most suitable level of coverage.
2. Compare providers
Don’t settle for the first insurance provider you come across; instead, compare rates and conditions from different insurers to find the best fit for your business.
3. Consult professionals
Seek expert advice to tailor your insurance solutions. Insurance professionals can help you navigate the complex world of motor trade insurance and ensure you get the coverage you need.
ERM Financial Services is your provider of comprehensive motor trade insurance
Motor trade insurance is not just a wise investment; it is a legal requirement for businesses operating within this industry in Ireland. Choosing the right policy is therefore crucial to adequately protect your business, your customers and your most vital assets.
From taking you through the ins and outs of motor trade insurance to assessing your unique needs, ERM Financial Services is ready to assist you in finding the perfect policy tailored precisely for your business.
Contact us today for a personalised quote and expert guidance every step of the way, and be sure to also check out our blog and resources for more insurance-related advice and news.