If you have just gone into business in the motor trade, then you will need motor trade insurance. This can be a daunting task because you will not know what you need exactly. You might get snowed under and you will just pick any old policy whether it is relevant to you or not.
You don’t want to get stuck paying for a policy that is no good for you, so you need to take your time and do your research. Don’t be rushed into making a decision before you are ready and have a list of questions that you want to ask the insurer before you sign on the dotted line.
What type of policy do you need?
It is best if you know what type of policy that you need before you have contacted your potential insurer. The type of policy that you need depends on what business that you have.
If you are driving vehicles that you don’t own, then you will need a Road Risks policy so you can drive the cars off your car lot. Most traders combined policies can be tailored towards the needs of the policyholder. When you phone up to get the insurance policy, you should ask if you can add cover for business interruption, money loss, road risks, material damage and even public liability.
You just have to tell the insurance company what type of policy you are looking for and they should be able to tell you which policy would better suit your needs.
You do have the choice of just buying a policy that is ‘off the shelf.’ This means that you buy the policy as it is listed. You don’t have to add anything and it is just as simple as phoning up and getting the insurance.
The problem with these types of policies is that they don’t necessarily cover everything that you need. You might find yourself in trouble down the line and try to claim on your insurance, only to find out that you aren’t covered.
That is why you should find out what is included on all policies and make sure that you are covered for everything that you need from the moment that you contact the insurers. Just make sure that all the covers are relevant to your business.
What is the value of whatever you are covering?
You have to make sure that all your values are correct. This is because you might have an insurance policy that only covers you for so much. If you have incorrectly valued something and something goes wrong, then you might have a policy that is useless to you.
Health and Safety
With your motor trade policy, you need to make sure that you are covered for health and safety issues. First, you should make sure that your place of work is up to the standards of health and safety policies. Then you should make sure the policy will cover you if there is an accident and one of your workers is hurt.
This is one of the most important things you should have cover for because if there is an accident and you don’t have the correct policies in place, you could be liable for prosecution.
When you are picking your insurance policy, you should get some quotes from more than one insurer and then you should pick the cheapest one as long as it covers the areas that you need it to. There is no point getting the cheapest policy if it is useless to you.