Motor Trade Premises Insurance

While the topic of motor insurance for drivers is frequently mentioned, motor trade insurance is another topic altogether. Anyone in charge of a motor trade business will understand the importance of having the right insurance in place for protection against theft, third-party claims, fire and more.

This means you could be protected financially if something happens, so won’t have to spend a large sum of money to repair your premises or replace its contents. Here’s what you need to know.

What is motor trade premises insurance?

Premises insurance exists to protect people who work from a specific location. Motor trade premises insurance follows the same concept and applies to those working in the motor trade sector.

Motor trade workers range from mechanics to auto-electricians and those working in vehicle sales – although the continuous innovation within the auto sector could drastically alter what it looks like in years to come.

Motor trade premises insurance covers businesses of all sizes too, from small family-run garages to large commercial sites.

What insurance do I need for my business premises?

Generally, most businesses will need to consider the following types of insurance for their premises:

• Buildings insurance: The property owner or landlord should secure buildings insurance to protect against damage caused by fire, accidental damage and more. While it isn’t compulsory, it is advisable.
• Contents insurance: This type of insurance could protect business contents such as tools, machinery and other equipment. Again, this isn’t compulsory, but it is advisable.
• Public liability insurance: This isn’t a legal requirement, but it is highly recommended. It will cover you for third-party claims where someone has been injured or experienced damage at your premises because of negligence.
• Employers’ liability insurance: If you employ staff, this is a legal requirement. It covers you for any accidents that could compromise employees’ safety.

In some cases, you can buy insurance that covers multiple areas in one policy. For example, contents insurance and employers’ liability insurance can be included in your motor trade premises insurance policy.

If you run a motor trade, you’ll likely need to look into road risk insurance if you move customers’ vehicles in your day-to-day. You may also want to consider electronic equipment insurance if it isn’t already included in your contents insurance, as this will help to deter costly repairs or replacements.

What does motor trade premises insurance cover?

While each policy will vary, motor trade premises insurance could provide cover for contents within your premises, such as tools, machinery and fixtures and fittings. It could also cover damage to vehicles left on the business premises or to the building itself, plus much more.

Premises insurance is valuable to any business. It’s there to help pick you back up if something unexpected happens. Remember, you can still get motor trade premises insurance for buildings you don’t own.

Who is responsible for insuring a commercial property?

A little different from dedicated premises insurance, commercial property insurance is a type of buildings insurance.

The property owner, freeholder or landlord is responsible for paying buildings insurance on a property. Meanwhile, it is down to the commercial tenant to arrange insurance that covers any business contents, fixtures or fittings within the property.

Buildings insurance alone only protects the property itself, so it’s important to make sure all bases are covered. If the business owner owns the property, instead of renting from a landlord, then they will be responsible for all the above.

What is covered by commercial property insurance?

Commercial property insurance is covered by the property owner and is designed to insure the physical premises in case anything happens.

Damage caused by the following could be covered under commercial property insurance:

• Fire
• Floods, subsidence and other natural disasters
• Vandalism
• Accidental damage

If you’re a motor trade business owner who also owns the property, it is advised that you investigate premises insurance that covers these risks, alongside other types of contents insurance.

Always check your policy details or speak to your insurance provider to establish exactly what is covered under your policy. Often, you will be able to get a tailored policy to suit your business needs and ensure you’re getting the best value possible. This way, you can benefit from the level of protection that works for your business without paying more than you need to.