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The Different Types of Motor Trade Insurance

If you are in the business of buying, selling, repairing, or maintaining automobiles, you need motor trade insurance. The cover is also necessary if you use vehicles such as vans and motorbikes in your business. There is no telling when an unwanted event that can bring your business activities to a standstill will take place, and that is why buying such cover nonnegotiable. One advantage of the cover is that it is highly flexible, meaning you can tailor it to the needs of your business. It comes with an array of options that you can select for your needs, and these are mentioned below.

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.

Third-party fire and theft offers the same coverage as third-party only insurance, in addition to cover for damages that result from theft or fires of the vehicles connected to the trade.

Besides the cover afforded by the two categories above, a comprehensive cover includes accidental damage to any car that a motor trader has responsibility for or owns. 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.

Liability cover, on the other hand covers you for any type of injury that could befall your customers or damage to their property due to your negligence or that of any person in your premises. Among the items covered include legal fees that may result if a customer pursues legal action, hospital treatment, and other expenses. It may so happen that a client could get injured while on your premises as he leaves right after entrusting you with his vehicle for repairs or other types of work. In the absence of liability cover, your business could face bankruptcy if the compensation to such a party is colossal.

There is the combined motor trade insurance that provides the most extensive form of cover. It is designed for a business that has large premises that comprises of a garage, car showroom, forecourt, and MOT center. In addition to covering vehicles, all the equipment, tools, cash, and other items are covered by the combined motor trade insurance. Therefore, your motor trade business will get protected from all the angles. If you purchase this cover type, you will get peace of mind in the knowledge that nothing could interrupt your business activities.

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