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The Different Types of Motor Trade Insurance

Motor trade insurance is essential if you are involved in buying, selling, maintaining, or repairing automobiles. The cover is also necessary if you use vehicles such as vans and motorbikes in your business. It is impossible to predict when an event that could threaten your business operations will take place, making the cover necessary to avoid such an occurrence. The flexibility of this cover allows you to tailor it to the needs of your business without difficulties. Consequently, it offers the following array of options that you can select, depending on the insurance needs of your business activities.

Those in the business of buying and selling vehicles, fitting and tuning are required to purchase the third-party only insurance cover as a legal requirement to conduct their operations. Here, the insured receives basic cover for third party injuries, property damage or death that may be caused by vehicles connected with the business.

There is also third-party fire or theft that is similar to third-party only insurance but it also extends to losses that result from fires or theft of the vehicles related to the business activities of the insured party.

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. In whole, the third-party only, third-party fire and theft, and comprehensive cover are segments of the road risk insurance type.

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. 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. 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. In short, it is meant to protect the entire business operations of a motor trader. If you purchase this cover type, you will get peace of mind in the knowledge that nothing could interrupt your business activities.