Comprehensive Guide to Auto Dealer Insurance Policies
This article offers a detailed overview of auto dealer insurance, including coverage types, industry applicability, and essential considerations. Designed for professionals in the automotive trade, it highlights how tailored policies protect vehicles, premises, staff, and liabilities, ensuring comprehensive business security. Learn about road risks, combined policies, public liability, legal expenses, property damage, and more to make informed insurance choices for your automotive business.
Understanding Auto Dealer Insurance
Auto dealer insurance, also known as motor trade insurance, is essential for professionals in the automotive sales and service industry. It safeguards your vehicles, tools, business premises, staff, and cash flow. This all-in-one policy provides coverage for daily operations, including vehicle damage, theft, accidents, and customer incidents. Suitable for car showrooms, repair shops, oil change stations, auction venues, towing services, MOT testing centers, mechanics, importers, and customization specialists, this insurance ensures comprehensive protection tailored to your specific business needs.
Types of Coverage Offered
Choosing the right coverage is crucial. Policies are customizable based on your business requirements. Key options include:
Road Risks
Essential for any auto dealer, road risk coverage can be basic or full. A third-party policy covers third-party property and injuries, with optional protection against theft and fire. Full comprehensive plans extend coverage to collision, vandalism, and employee-related accidents.
Combined Insurance
Ideal for businesses with a physical location, this policy protects vehicles from theft and damage while covering premises damage and liabilities.
Part-Time Coverage
Perfect for seasonal operations, this flexible plan provides protection when needed, without the cost of full-time coverage.
Additional coverages include:
Public Liability
Protects you against claims from customers or visitors for accidents or injuries on your premises.
Employer’s Liability
Covers employee injuries or accidents, safeguarding your business against costly claims.
Legal Expenses
Essential for handling legal disputes, especially related to liabilities and accident claims. Breakdown cover is recommended for vehicle transportation safety.
Other important points to consider:
Proof of trading confirmation might be required by insurers.
Insurance applies only to actively operated motor trade businesses.
Indemnity levels vary; some vehicles like high-end or exotic cars could be excluded. Vehicles must be owned or in use related to the business and insured if stored for over 14 days.
A comprehensive policy extends to premises, property damage, goods in transit, and other liabilities.
Coverages include property damage, business interruption, and specific motor trade liabilities, tailored to the industry’s unique risks.
Property damage insurance covers damage to equipment, tools, inventory, and fixtures.
Business interruption coverage compensates for income loss during repairs or closures.
Liability coverage includes general, employer, and product liabilities, protecting against negligence claims and damages.
Additional protections like defective workmanship and sales indemnity safeguard against specific risks inherent to motor trade activities.
