Making It Work in the Car Repair Shop

If your businesses consists of selling, buying, repairing or doing anything in general to cars, motorcycles or other vehicles, then you are in the motor trade businesses and need to have protection through insurance. This goes for any business, whether small or big, corporate, personal or family owned. This article will look at the different types of insurance available for motor traders and which are required by law. We will also look at what extra insurance is practical and what they are good for.

In general there are five types of insurance available for the motor trade businesses:
Third Party Only insurance is required by law if your business includes any of the following:

Selling and Buying of cars, motorcycles or other vehicles

Repairing of cars, motorcycles or other vehicles

Driving any kind of vehicle on public roads

Fitting and tuning of parts on any type of vehicle

Restoration of classic and vintage cars

Owning a garage or shop

Third Party Only insurance covers expenses in the cause of personal damage done to third party, death of third party or damage done to third party property. It does not cover any damage done to the motor traders vehicles or any kind of personal damage done to the motor trader or his employees.

Third Party Fire and Theft covers the same basics as the Third Party Only, but also covers damages done to the motor trader trough fire, accidents and theft, connected to operation of the motor traders businesses.

Comprehensive Policy is a policy that covers a wide array of accidents which may occur in the motor trader. It covers the same things as the Third Party Only and Third Party Fire and Theft, but also accidental damages done to the motor traders vehicles while in his possessions and the repairs because of this.

Liability Policy covers liabilities that can potentially arise if the motor trader does one of the following:

Invites people to his garage, shop, property or other premises to do businesses, service or otherwise interact with customers on his premises. Basically if the motor trader interacts with any people as part of his business and on his premises, then he will need this policy to be covered.

Employ people for any kind of service related to the motor trade businesses.

Service, repair or restore vehicles of any kind.

Buy, fit and supply parts for vehicles of any kind.

The three policies covered under Liability Policy are: Public Liability, Defective Workmanship and Employee Liability.

Combined Policy is an extensive policy that covers most or all of the above areas, for money, repairs, damages and liabilities. It is a fit-all kind of policy for all complications that could arise as a result of doing motor trade businesses.

So a Motor Trade Insurance policy covers extensive areas of the motor traders businesses from accidents and damages done to third parties, to responsibilities for his office and garage, and not least his employees. You should choose the motor trade policy that costs the least, but covers the most.

About the Author:

Paul Headley is a specialist insurance article writer. Staveley Head are a leading UK insurance broker for motor trade insurance

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