Are you unknowingly exposing yourself to risk?
Whether you restore, repair, valet, deliver vehicles or even ‘buy and sell a few’ from home, at some point you will drive someone else’s vehicles. That means you are legally-bound to hold suitable motor trade risk cover.
Cheryl Maybury, director at Peter James Insurance, is responsible for developing PJI’s motor trade policy and here she explains more about this often-misunderstood type of cover.
‘Motor trade insurance is a broad term and confusingly often used to bring several types of cover together so it comes across as the type of commercial insurance cover only bigger organisations would need.
‘At its most basic level, however, Motor Trade Risk is the essential third-party level cover needed to drive any vehicle on your premises or in your custody on the roads.
‘Crucially this includes those smaller operators, the hobby restorers tinkering with a friend’s vehicle for largely love but also a few extra quid. These are the normally law-abiding model citizens who often end up driving ‘unintentionally uninsured’ mistakenly believing their own personal car insurance policy which includes DOC – driving other cars – will cover them in these situations.
‘Any and every kind of motor trader – even the part timer – is excluded from DOC, leaving such individuals uninsured so liable for a fixed penalty of £300 and 6 penalty points at best – the worst being unimaginable.
‘That’s why we offer a range of motor trade policies created with the specific needs of classics motor traders in mind, from the very affordable but essential motor trade road risk cover for part-timers at a third-party level, to the still affordable, highly-advisable comprehensive motor trade road risk cover that will add in accidental damage, fire and theft cover as well as demonstration use (test drives for example.)
‘Once road risk is covered, and if you operate from commercial business premises, you may wish to scale cover up into a combined motor trade policy.
‘This is the type of more complex policy mentioned at the outset, where cover extends from road risks and accidental damage to several other cover types including protecting your building and your stock and could also add on products liability (including all safety-critical parts in the UK and US/Canada), defective workmanship, sales indemnity and employers’ liability.’
‘What is important is taking the time to work with your insurer to accurately quantify levels of risk you face and ensure that your current level of cover meets your needs.
‘That’s why when you call us we’ll take the time to go through this with you carefully and with no one size fits all product, it’s worth taking a little longer to find the best balance of price and cover.
‘Even if you already hold motor trade cover and are looking for a price comparison its worth taking the time as we may find gaps in your existing cover or some significant savings.’
To discuss your motor trade policy options call the Peter James Insurance commercial team operating under the Stewart Miller brand, on 0121 422 2282.