Since the motor trade business is so lucrative, it also requires maximum security, which can only be attained from insurance policies. An automobile firm can choose many insurance policies depending on what fits best. In general, motor trade insurance covers a variety of situations that mainly emanate from liabilities and risks. They include:
Fire and theft threats: situations like this are inevitable that once they happen, nothing can be retrieved. All insurance agencies offer policies that are likely to respond to issues as those. It is wise noting that these policies not only compensate for the vehicles but also for equipment and items that are in use in the operations of the firm.
Third party: in case one of the vehicles of the firm is involved in an accident, third party policies provide cover to the damage of the car and compensate losses to the passenger in the vehicle.
Employees: for the staff in a firm to work effectively, they must be assured of coverage by the employers’ liability cover while at work. This is because the motor trade businesses are involved in major risks that in some cases the employees may be injured or die at work. However, with the cover, they are assured of attendance should unfortunate incidences occur.
Accidents: Since customers take their vehicles for check up in the automobile firms, the vehicles are likely to be involved in accidents of all kinds while under the care of the firm e.g. accidents while test driving. For this, the insurance is likely to cover the damages and give compensation to the driver involved, as long they are registered as part of the firm. Therefore, the owners of the vehicles have nothing to worry about since the damages are attended to appropriately with no need of their assistance.
Products: this is when unfortunate cases occur for reasons of improper fixing of items in a vehicle. A firm is likely to be sued by a customer due to mechanical failures of the vehicles, which may have resulted to causing an accident, for wrong fixing of items while in the firm. For instance, a car could have been taken to the firm for repair then after getting out of the garage, the situation that led to its service worsens and it causes an accident. Situations like this are usually appropriate if the firm has product liability cover over such incidences since the customer may decide to sue the firm for the damage while faults could have emanated from manufacturers of the item.
The public: In case, a customer is hit or is injured while in the premises of an automobile firm, then moves to sue the firm owner for the damage, the public liability should cover the firm.
Combined insurance: the policy is used not only to cover for the mentioned risks and liabilities in the firm but also for the damages in the firm that would affect the employees, machinery and tools, the premises and everything that involves the firm. The insurance cover is quite expensive but one can rest assured of security should a misfortune strike.