Traders Insurance is a necessity, but it can often be seen as a pure cost, that is until the worst happens and you need to make a claim!
We’ve put together our top five motor trade insurance claims which should give you a visual on the types of risks and incidents that can occur.
#1 Motor Trade Road Risks Accidents
The most obvious area and it’s no surprise that we’ve put it at the top of the pile is road traffic accidents.
These can take a number of forms, the most common involves you, or one of your drivers, being involved in an incident with a third party or a single-vehicle accident.
Other areas of road risk claims include demonstration cover accidents, incidents whilst using trade plates, courtesy car claims or recovery vehicle accidents.
#2 Theft of vehicles
Whilst modern vehicle security has significantly reduced the risk of vehicle theft, it is still an issue and claims in this area also include attempted theft and incidents involving theft of keys.
The main area to note is that a Motor Trade Road Risks Insurance policy will have a theft exclusion from premises.
If you operate from a business location, then you should arrange separate stock of vehicles cover to protect your own and customers vehicles whilst stored at this address in addition to your road risks policy.
#3 Malicious damage
For comprehensive road risks policies, we have seen a number of malicious damage claims, from paint being poured onto vehicles, to graffiti being scratched into the paintwork.
For larger combined motor trade risks, the damage can be more widespread, often with a whole forecourt of vehicles suffering damage overnight.
It’s a delicate balancing act between securing premises to protect vehicles whilst still making them accessible and visible to potential purchasers.
Your motor trade insurance broker will be able to provide specific risk advice to minimise the risk of a claim and reduce your premium levels.
#4 Public Liability Insurance
Public Liability provides cover for legal liability should a customer, or a member of the public, injure themselves or receive damage to property as a result of the actions of you, or one of your employees.
Typical liability claims involving car dealers include a member of the public slipping over on a wet floor or pavement following car washing. It could also relate to other things on your premises, for instance someone scolds themselves on the hot water from a coffee machine on your premises.
#5 Sales Indemnity Insurance
Sales Indemnity is an extension of Public Liability cover and provides protection should your business receive a claim for injury or damage as a direct result of a vehicle sale.
For example, a customer purchases a vehicle from you and calls you the following afternoon to advise that the front near-side wheel had come loose whilst he was driving home and come away from the vehicle causing damage to the underside of the car.
Risk Management & FREE Trade Insurance Review
By the very nature of insurance, there is an acceptance that accidents happen, that being said, you can minimise your own risk by undertaking your own risk assessments and ensuring that best practices are in place.
Insync is a specialist Motor Trade Insurance Broker and can provide a free review of all your insurance requirements.
You can book a slot with one of our Business Insurance team via our website or call us on 0330 124 0730 for more information.