What is motor trade insurance?
Motor trade insurance, also known as “trader’s insurance” is a policy that covers someone running a business that involves the buying, selling, repair or maintenance of vehicles.
If you generate profit from a business within the motor trade, you can arrange specific insurance to protect yourself. Unlike personal vehicle insurance policies aimed solely at individual use, motor traders’ insurance can cover many scenarios unique to motor trade businesses. These include driving customers’ cars and liability issues when dealing with the public.
If you are a vehicle recovery agent, valet, mechanic or trader, motor trade cover will enable you to clean vehicles, move unlicensed cars with trade plates, test cars on the road and much more.
Our motor trade insurance offering includes road risk only or a combined motor trade insurance package offering peace of mind. You may decide a combined policy is the right level of cover for you that can insure a range of risks from road risk to buildings, liability issues, tools, and equipment.
We can even offer a young motor trader’s insurance package designed for professionals under 25 in the trade.
What does a motor trade policy cover?
Certain insurances relating to vehicles and running a business are a legal requirement, which a motor trade policy should encompass. As well as this, other features and benefits can be beneficial to a motor trade business owner. However, the cover you take out depends on what your trade involves and what level of risk it presents.
Motor trade policies can usually cover:
- Road risk insurance – protects you against risks while driving your own vehicles, as well as customer vehicles in your possession. This can be on a third party basis, third party fire and theft, or fully comprehensive.
- Public liability – protects you against claims from the public, caused by your work activity, e.g. defective workmanship or faulty parts.
- Employers’ liability – protects you against claims from your employees if they are injured at work.
- Stock of vehicles – protects you if vehicles in your possession are stolen.
- Business premises – protects the building or garage you work from.
- Tools, equipment and money cover – protects tools, equipment and business cash stored on your business premises.
As a broker, we will help you find suitable insurance cover to mitigate risk and keep your business safe. This could include cover against theft, employee injuries, or road risks.
These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses, and any endorsements.
Who needs motor trade insurance?
Anyone who works in the trade or runs a motor trade business can benefit from motor trade insurance – from single-site businesses acting as sole traders to large-scale vehicle companies with forecourts and garages.
Whether you’re buying and selling cars, a valet business, mechanic, or scrap yard, we can help find a motor trade insurance policy for you. If you’re a sole trader or a limited company, you’ll need to consider specific types of insurance to help protect you on a personal and professional level. Our cover is for anyone in roles such as:
- Motor dealers
- Commercial vehicle repairers
- Mechanics working from home or mobile
- Part-time traders
- Body shops including Panel Beaters & Paint Sprayers
- Valeting businesses
- Service, repair, and MOT garages
- Vehicle breakdown and recovery agents
- Vehicle collection and delivery agents
You will need to provide evidence that you are running a genuine motor trade business to be eligible for motor trade insurance.
These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses, and any endorsements.
Additional cover for motor traders
Motor trade insurance focuses on the day-in and day-out of your job, protecting you and your business from risks you may face. However, a range of additional insurances may be beneficial, especially if you work with the public or have a team of employees. For instance, legal expenses cover can offer reimbursement and support if compensation claims arise. Here’s a list of our additional cover:
Public liability insurance, will help keep your business protected against claims made by third parties. That means you’ll have protection against customer claims as well as members of the public.
Breakdown and recovery insurance can be crucial if you’re involved in recovering a customer’s vehicle, whether that’s collecting a scrapped car to refurbish and sell, or if your business is an active vehicle recovery service. This cover is designed to protect you when performing any loading and transportation of vehicles not registered in your name.
Unaccompanied and accompanied demonstration cover protects vehicles that are taken out for test drives.
These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses, and any endorsements.
Why choose Gallagher for motor trade insurance?
Why take risks with your business? Work with our experienced team to build a policy that suits your requirements and keeps your business safe. Our specialists are always ready to offer a high-quality service.
Benefits of working with Gallagher
- Specific motor trade insurance cover built for your unique needs.
- We have motor trade sector expertise and can provide updated information and insights as the industry changes.
- Quotations offered over the phone.
- Online quotations in a matter of minutes.
- Cover can often be taken out immediately.
- Documentation is always issued quickly and accessible.
- Our team is always ready to help over the phone.
- Exclusive rates subject to acceptance criteria*
Whatever the nature of your motor trade business, our team of experienced industry specialists can help find an insurance solution for you. Call us on 0800 062 2312.
*customers must meet acceptance criteria for exclusive rates.
