Published on October 21st, 2014 | by neil0
3 Must-have Insurance Policies For Motor Traders
Having the right insurance in place is a must for any business these days. Without suitable cover, firms can quickly end up in legal hot water and facing ruinous bills. If you operate in the motor trade, you’ll need a range of policies, and here are three of the most important.
1) Employers liability cover
There is no getting around the importance of employers liability cover. This is a legal requirement in the UK if you employ members of staff. If you don’t get it, you could face fines of up to £2,500for every day you lack the cover.
You must get this financial protection as soon as you become an employer and it has to cover you for at least £5 million. The policy must also come from an authorised insurer.
This cover helps you to pay compensation if a member of staff becomes ill or is injured as a result of the work they do for you. When you take out one of these policies, your insurer will provide you with a certificate and you must display this paperwork where your employees can access it. If you don’t, you could face a fine of up to £1,000.
2) Public liability insurance
Although not a legal requirement for all firms, public liability cover is also crucial. This provides protection in the event that your customers suffer an injury or damage to their property while on your premises. It also covers you if your business causes injury or property damage at a client’s premises.
The level of public liability insurance your business needs will depend on the precise nature of the work you do. The greater the risks to people and property and the higher any potential compensation claims, the more cover you will require.
Some organisations may demand that you have this cover in place before they will do business with you.
3) Motor trade policies
You will also need the relevant automotive insurance. Vehicle cover is a legal requirement in the UK, so this is not something you can afford to ignore. Luckily, it’s now possible to access tailored policies that can be adapted to suit your particular needs.
To make your life easier, you might benefit from getting combined motor trade policies. These financial products include protection for your premises and equipment, as well as your vehicles and any road risks. They can also incorporate both employers liability and public liability cover.
Because of the wide reach of these policies, they can make sourcing insurance quicker and easier. They also make annual policy renewals more straightforward. By using a suitable broker, you should able to find cheap motor trade insurancetoo. This could be welcome news if you’re operating on a limited budget.
These three types of insurance do not represent an exhaustive list of the various types of cover on offer. However, they are among the most important policies available. They should therefore feature high up on your checklist when you’re sourcing financial protection.