Find the Right Road Risk Insurance for Your Business
This motor trade road risk insurance policy allows motor traders to drive any vehicle that is on their business premises, as well as any vehicle that is under their custody or control, for motor trade purposes. This cover is vital when a motor trader has several customers’ vehicles – and/or stock vehicles – within their care.
A road risk insurance policy is designed solely for an individual, individuals or a company operating a business within the motor trade industry in the UK.
From selling cars to servicing vehicles and valet, the motor trade industry in the UK is extremely varied. There is, however, a major difference between a standard motor policy and a motor trade insurance policy.
Motor Trade Road Risk Cover Extensions
In addition to the standard motor trade road risk insurance on a motor trade policy, there are other extensions and options open to a motor trader to ensure all the trading activities are covered:
- Demonstration Use – This extension gives the motor trader the ability to allow a potential buyer to test drive a vehicle prior to purchase. As you can imagine this is an important extension as many buyers would not consider buying a vehicle without taking it for a test drive.
- Public Liability – This is another important addition to a motor trade policy. Public Liability protects motor traders from any claims arising as a direct result of their negligence. For instance: if a mobile valet business was to leave a wet sponge at the home of a customer, and the customer then happened to slip on it, breaking their leg, this would be considered negligence on behalf of the valet business. This kind of incident can leave you at risk of being sued by the customer. Public Liability insurance will protect both you and your business in the event of a negligence claim.
- Third Party Only Insurance (TPO) – This is the minimum legal requirement for vehicles to be driven on the road. TPO insurance will only cover loss, damage or injury inflicted on any third party. If you have Third Party Only insurance, your own losses, damage or injury (apart from passengers) will not be covered. A motor trader therefore really needs extra protection for his vehicles above this basic Third Party requirement.
- Third Party, Fire and Theft (TPFT) – This is a step-up from Third Party Only. TPFT pays out in the event of loss or damage to vehicles that are under the motor trader’s custody or control. This is in the event of theft or a fire, as well as to third party damage or injury claims. This is particularly relevant if vehicles are stolen and burnt out. The cost of TPFT cover these days is not significantly different to Comprehensive cover.
- Comprehensive (Comp) – A Comprehensive policy includes the same cover as TPO & TPFT, plus it covers accidental damage to the vehicles that the trader owns or has care of. So, if a customer’s vehicle is damaged in an accident while being tested, a Comprehensive policy will cover the cost of the repairs.
Your Road Risk Policy
If you sell cars, you might need to drive a car to a garage, a customer’s address for delivery, or even take over during an assisted test drive. If you offer a valet service, a customer may leave their car to be cleaned outside of the valet business. This might require you to move the car closer to a water source or to park it in another bay. If you did happen to become involved in an accident whilst moving a vehicle in this way, and you do not have the correct insurance in place, you will not be covered for any damage that might occur.
Acorn’s motor trade road risk insurance policy insures the driver, rather than just a single car or vehicle. This allows you to drive multiple cars – including customer’s vehicles – as part of the service you offer, in relation to your motor trade business.