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What is Motor Trade Liability Insurance?

If you own and run a business that involves vehicles - such as you run a car valeting service, a garage or an MOT centre for example, you should hold a Motor Trade Insurance policy (also known as Road Risks Insurance), but Motor Trade Liability Insurance is a little bit different. Here’s everything you need to know.

Motor Trade Liability Insurance

Motor Trade Liability Insurance is a policy that protects motor traders against claims made by employees and the public (such as slips and trips on your motor trade premises) and liabilities that may have occurred from the repair/fixing of vehicles done by you.

Types of Motor Trade Liability Insurance

There are three types of Motor Trade Liability Insurance:
●     Employers Liability - this policy protects motor traders from any claims made by staff as a result of injuries happening in the workplace
●     Public Liability - this policy covers the public e.g. your customers against potential injuries happening in the workplace
●     Sales/Service Liability - this policy protects against any injuries or accidental damage to property as a result of the business activities of a motor trade firm - such as the buying and selling or new and old vehicles, the repair of vehicles, or the sale of motor trade related products to name a few.
●     Portable hand tools - this policy covers portable hand tools left at your business premises. Cover can range from £1,500 - £5,000.

Employers’ Liability Insurance

Employers’ Liability Insurance is a type of business insurance that is imperative for motor trade businesses that employ more than one member of staff.

Why is Employers’ Liability Insurance important?

This type of insurance for motor traders is important as it both protects your employees and adds to your motor trade business’ health and safety compliance. If an employee has an accident in the workplace or becomes unwell because of their motor trade work, they are in the position to sue you.
Employers’ Liability Insurance cover ensures that the cost of any potential compensation and legal payment(s) is covered. If you don’t take out this type of insurance protection, you are at risk of receiving a £2,500 fine for every day you aren’t covered - which can have detrimental consequences for your business.

Who needs Employers’ Liability Insurance cover?

●     Full time and part time motor traders
●     Temporary employees - such as volunteers or apprentices

How much does Employers’ Liability cost?

The cost of your insurance depends on how many staff you employ, and the risks that your motor trade businesses may present to employees. Your policy must have cover for up to £5 million, although some businesses may need £10 million worth of cover, which is what we offer.

Public Liability Insurance

Public Liability Insurance is a type of business insurance that is important to have in place if your business regularly has contact with any third party, such as public (your customers).

Why is Public Liability Insurance important?

Public Liability Insurance isn’t required by law, but it is good that motor traders have this policy in place because of the regular contact with third parties and members of the public. If a third party’s property gets damaged, for instance, your Public Liability Insurance would cover it. If you’re not covered, you could get sued for tens of thousands of pounds in compensation.

Who needs Public Liability Insurance cover?

If your motor trade business has contact with customers, which it most likely does, taking out a Public Liability Insurance cover is extremely beneficial to your business. If you’re a self-employed motor trader, you could find yourself in deep financial trouble if you’re not covered by Public Liability Insurance.

Levels of Public Liability cover

The type of cover you need depends on how much of a risk your business poses to people. If you don’t have much interaction with the public, you can expect your cover to be a minimum of £2 million. If your business is more high risk, your cover will need to be higher.

How much does Public Liability Insurance cost?

This all depends on the following things:
●     The type of business you are
●     The number of staff
●     Any past claims
●     How often you are in contact with customers or clients
●     Health and safety record
●     The turnover you make
Road Runner Insurance offer £1 million, £2 million or £5 million in Public Liability.

Motor Trade Liability Insurance from Road Runner

As knowledgeable motor insurance brokers, we are able to offer you Motor Trade Liability Insurance. Please contact us to find out more about taking out a Motor Trade Liability Insurance policy.

Road Runner is a trading name of Aston Scott Ltd. Authorised and regulated by the Financial Conduct Authority (Reg No. 308048). For your protection, telephone calls may be recorded or monitored.

Copyright © Aston Scott Ltd 2015. All rights reserved. Road Runner, 28 Dingwall Road, Croydon, CR0 2NH. Tel: 0330 822 0468

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