Vehicles are an important part of life and make traveling or carrying goods and services from A to B easy. However, there will be times that you have to bring them to mechanics or an auto specialist shop to improve their performance or repair faulty parts.
These auto specialists know how important their services are and will do their best to make sure that their work is perfect.
But, there are times that even they make mistakes with their work and cause trouble for their clients by accident. As an added protection for these situations, each client should get additional insurance coverage under the auto specialists’ motor trade insurance.
What exactly is this insurance all about and should you get one for your motor trade business? Here is a short guide to explain what this insurance is about and how to build the best package:
What does a motor trade insurance cover?
A motor trade insurance is a special insurance package that is used by mechanics, auto electricians, parts wholesalers, transmission/clutch/brake specialists, and other motor trades companies.
The insurance will cover the fees caused by faulty repairs and the related damages it will cause to your client’s vehicles. I
t will also cover costs that may be incurred due to damage after test driving the client’s vehicle after service, as well as other liabilities that may happen to these vehicles while under your care.
What should I consider when building the best motor trade insurance package for my business?
It can be tricky to device the perfect motor trade insurance if you will be getting one for your motor trade business.
The insurance must cover certain risks that relate to faulty mechanics, public liability, and vehicle protection. You also have to be familiar with the situations your business may fall into that may require insurance coverage.
Here are the questions you need to ask yourself when designing your motor trades insurance:
- Is your current insurance coverage for liabilities include faulty repairs and related damages? How much is the insured sum for such situations?
- If it does include liabilities like faulty repairs and related damages, is the amount insured enough for you to handle all the claims that you may get for an entire year?
- Will your current liability insurance cover the protection of your client’s vehicles while it is in your facility?
- When did you last update your sales report with your insurance provider to upgrade your coverage? Does your insurance provider update with you regularly for any insurance changes?
Test Driving Client Vehicles
- Is your insurance coverage comprehensive or does your existing public liability insurance come with a clause that talks about test driving damage? If you have liability insurance for your business, do you understand that you may be seen as the one responsible for the damage to be able to claim the insurance?
- Is your insured sum enough to cover the costs involving replacing a car or its parts in case you total the car in some way? Will it also be enough for any other claims that you will make throughout the year?
Storing Client Vehicles
- If you have a log of vehicles that needs to be repaired and left in your business facility, do you have the right insurance to cover them in case of theft, weather damage, and other related issues while they are in your care?
- What other risks are in my facility that has to be covered by my insurance and does my insurance cover such instances?
It can be difficult to compute the insured sum to protect businesses in case it experiences business interruptions caused by natural disasters and man-made damages beyond your control. It is often that insurance companies compute this incorrectly and results in lower insurance claims.
To prevent this problem, speak to your insurance broker and show them your Profit and Loss Statement so they can determine how much money can be insured for these situations.
You may also look at the issues reported around your community which can be a risk to your business. Make sure to bring the necessary information to your insurance broker for their consideration.
If your business involves issuing road safety certificates, vehicle valuations, and other similar certifications, do you have the right insurance coverage that will protect you from financial loss claims?
Your insurance must have professional indemnity coverage included to protect you from such risks.
Every business must have the right insurance coverage that will protect them from any issues that may cost them financially.
In the case of motor trade businesses, they must have the right insurance to cover any mishaps that may occur that may damage their client’s vehicles. It must also be enough to keep the business steady for the entire year.
Don’t settle for insurance coverage for your motor trade business that won’t cover every aspect of your entire livelihood in the process.
Check your current insurance coverage to see what they cover and if they do not cover the key areas of your business, it is time to find a new insurance provider.
A trusted motor trade insurance can offer comprehensive coverage for your business and offer them at rates that you can afford. They also take the time to know your business and understand the various risks involving your industry that must be taken into account.