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What are the Motor Trade Insurance Types Available

In case your business involves the sale, repair, or maintenance of motor vehicles, you need to purchase motor trade insurance cover. Motor trade insurance is also pertinent if your business activities involve the use of motorcycles or commercial vans. Unexpected events may take place and it the insurance is to minimize interruptions to your business activities. Motor trade insurance cover offers flexibility, and that means you can tailor it to fit into your business requirements easily. As such, there are various options that you can choose for your business needs and some of them are highlighted next.

A third-party only insurance policy is a legal requirement that buyers, sellers, fitters, and mobile tuners are required to purchase. Here, the insured receives basic cover for third party injuries, property damage or death that may be caused by vehicles connected with the business.

In addition to the cover provided by third-party only insurance, a third-party fire and theft offers cover in case of theft or fire damage to vehicles connected to your business.

A comprehensive cover offers the benefits of the two insurance types mentioned above but also extends coverage to include accidental damage to the vehicles in the possession or ownership of the business in question. A third-party only, third party fire and theft and comprehensive cover form the road risk cover that is responsible for vehicles in the possession or ownership of a business.

There is the liability cover that protects you financially in case a client is injured or suffers financial losses due to your negligence or that of your workers. Such a person may initiate legal proceedings that seek to recover lost income, medical treatment costs, legal fees and other costs as a result of the incident. For instance, if a customer brings in a vehicle to your body shop for paintwork but is injured on his way out due to spilled oil on your floors, he could sue for things like loss of income, medical treatment, legal fees and others. Your company could face bankruptcy if the compensation you are required to pay out is massive, and that is what the liability cover aims at eliminating.

There is the combined motor trade insurance that provides the most extensive form of cover. This cover suits a business that has a showroom, garage, MOT center, or forecourt. In addition to covering vehicles, all the equipment, tools, cash, and other items are covered by the combined motor trade insurance. So, this cover is the ultimate protection that you can provide for your motor trade business operations. A trader who buys this cover is assured of peace of mind because he is covered should any eventuality that threatens his business take place.