There are many motor trader risks, but the liability and potential for unexpected losses can be covered by motor trade insurance. Did you know that motor trade insurance covers all these motor trade risks? It’s true! Motor trader insurances can be customized to suit your needs and so it is possible to find a policy that will cover everything from low-level risk motor traders up to high-risk motor traders.
The first step to reducing motor trade risks is understanding what they are. The second step is to have the right motor trade insurance in place. Here are some of the most common motor trade risks:
Liability for property damage or personal injury
This is one of the most common motor trade risks. If you are found liable for damages or injuries caused by your business, motor trade insurance can cover the costs.
In terms of property damage, we are talking about the cars that are currently in the care of the garage selling them. They could, for instance, be damaged when just being moved around on the forecourt to change the display or when being delivered to customers. It is important to check that the value of vehicles being dealt in does not exceed the limit allowed under an insurance policy. Luxury and high-value or performance cars do, after all, represent a great expense if lost.
Damage to stock or equipment
If your stock or equipment is damaged, motor trade insurance can help cover the cost of repairs or replacement.
This can include tools that are used inside a garage. As technology advances, the equipment that is used is becoming more expensive to buy or replace. A business will want this protected by insurance.
Business interruption
This motor trade risk can occur if your business is forced to close due to an insured event. Motor trade insurance can help cover the loss of income during this time.
It can then be possible to maintain paying the wages of staff to retain them. The process of recruiting can, after all, prove to be time-consuming and expensive when it comes to hiring the right experience.
Fraud
Unfortunately, motor trade businesses are often targeted by fraudsters. If you are a victim of fraud, motor trade insurance can help cover the losses incurred.
Fraudsters will target businesses because of the sums of money involved.
Theft
This motor trade risk can occur if your stock or equipment is stolen. Motor trade insurance can help cover the cost of replacing stolen items.
Thieves will target business equipment because of its high value and the opportunity to pass it on to other unsuspecting businesses looking to save costs by obtaining useable but cheaper equipment. It can mean all the difference to businesses surviving to seek out equipment for the best possible price. Criminals will play on this fact.
Employee dishonesty
This motor trade risk occurs when an employee steals from your business. Motor trade insurance can help cover the loss.
Money and goods in transit
Cover can be provided when money or goods are stolen while in transit.
Legal expenses
If you need to defend your business in court. Motor trade insurance can fund the costs of legal expenses.
Product liability
This is necessary when products are sold that could potentially cause harm to customers. Motor trade insurance can cover the costs of liability claims.
Environmental damage
If your business causes environmental damage, motor trade insurance can cover the cost of clean-up and repairs.
Motor trade insurance is essential for any motor trader, as it can help cover the cost of damages, losses, and legal expenses. Motor trade insurance can be customized to suit your needs, so make sure you have the right policy in place to protect your business.
