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Trade Motor Insurance - Evaluating the need for trade motor insurance

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The motor trade industry involves a variety of services, processes, and procedures related to motor vehicles, which themselves include cars, trucks, vans, and every kind of vehicle in between. The primary components of the motor trade industry are as varied as the vehicles themselves, but generally, the most frequent aspects of the industry tend to involve managing the sales of fleets, purchasing fleets, operating them, and repairing or servicing them whenever they require maintenance. The motor trade industry is complex and continually changing, and as a result, it is a necessity to have some sort of trade motor insurance available to minimize risks resulting from the inevitable errors that occur in the industry. However, in an industry as dynamic and fast moving as the motor trade industry, the norms of trade motor insurance coverage are not the same as the typical norms of insurance coverage elsewhere. It is important to make sure you have the correct insurance and a sufficient amount of coverage to keep you in the clear in the event of a mishap, whether you operate an auto repair workshop, are in charge of a motor showroom, or are the head of a fleet of vehicles used for any number of services.

If you are a car dealer or involving in the manufacture of motor vehicles, it will be necessary to obtain insurance for your premises where you have the vehicles parked. In some cases, you may also need to obtain trade motor insurance for the vehicles that are parked in your show room area, should you have one. It will also be necessary to insure your employees. There are some car manufacturers who opt to wait until a customer has purchased a vehicle before obtaining insurance for their vehicles.

However, before pursuing this option, review the terms of your trade motor insurance policy. If the policy only extends coverage until the point where the vehicle has been delivered to your dealer or site of manufacture, you will need to obtain additional insurance for your vehicles until they are sold to customers. For example, it will be necessary to insure employees who are responsible for driving vehicles off the lot or even on the lot in order to deliver the vehicles to customers who have just purchased them. It will also be necessary to insure employees who return vehicles from customers that listed the vehicles as faulty. Additionally, you will need trade motor insurance to cover the work site against damages or loss from theft, fire, flood, and other natural disasters that occur frequently in your area.

In general, you will also be required to obtain trade motor insurance if you operate a private work shop that involves motor vehicles, such as a small business or even a personal one person shop that runs out of your garage at home. The reason trade motor insurance is required even in the latter situation is because it is possible that you or an employee of yours may accidentally damage a vehicle belonging to a customer while you have it on your premises for repair. Without trade motor insurance, you may be liable to pay for accidental damage committed while the vehicle is legally under your care. Obtaining trade motor insurance beforehand is particularly crucial if you intend to work on classic, vintage, expensive, or other cars of high value, as the costs of repairing such vehicles out of pocket may easily lead a small business owner to bankruptcy or worse.

If you operate a fleet of vehicles, such as vehicles that are leased out for delivery of equipment or medical supplies or transportation, it will also be necessary to obtain trade motor insurance for the fleet of vehicles as well as for any and all drivers who may use the vehicles for official work purposes. If passengers or goods are carried on the vehicles while they are used for work purposes, it will also be necessary to insure the passengers or goods. However, a challenge to be aware of involves classic vehicles; in such cases, it may be more difficult to obtain insurance for servicing, rebuilding, or maintaining such vehicles, as it can be difficult to accurately assess their value.

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