Motor Premises

Friday, March 14. 2014
Obviously, if you work in the motor trade and operate from established premises – and that could be anything from a High Street showroom, a service/repair garage or an MOT centre to a bodyshop, breaker’s yard or valet station – you should arrange a suitable level of insurance cover. However, did you know that a host of ‘bolt-on’ options are also available which can deliver enhanced levels of protection for your business? What’s more, Combined Road Risk and Premises cover could prove a more competitive choice premium-wise than taking out individual policies.

Let’s start with the basics. If you own the freehold of your premises and have a stock of vehicles or keep tools, machinery and office equipment, you should insure the building and these assets against fire, flood and damage (if you lease the premises, you might still need to safeguard the contents). In addition, a Motor Trade Premises policy can also provide statutory Employer’s Liability cover (compulsory if you have an employee) and we would also advise adding Public Liability insurance (not required by law) to protect against any claims made by a third party.

Now, let’s look at some of those invaluable ‘bolt-on’ cover extensions:

1) Engineering: insurance companies will inspect your plant and machinery equipment to ensure everything is in good working order and complies with legal obligations. If a piece of machinery does break down, it will be repaired.

2) Sales and Service: if you sell or repair a vehicle in good faith, but something subsequently goes wrong (it happens!) resulting in loss, damage or injury, you will be protected to the level of the indemnity.

3) Goods-in-Transit: Goods-in-Transit will insure against loss, theft and damage while on the road ­– it is strongly recommended if you collect or deliver vehicles as part of your business.

4) Business Interruption: if your premises are severely damaged, for example by a major fire or flood, business interruption will compensate you for any resulting loss of earnings.

5) Legal Expenses: you will be protected if you become embroiled in a legal dispute about the repair or sale of a vehicle.

Of course, it’s essential to arrange insurance that is tailored to your specific commercial needs. Rather than taking out stand-alone Road Risk and Premises cover, we would suggest looking at a Motor Trade Combined policy that encompasses Road Risk, Premises and Liability exposure. Our comprehensive fact-check will reveal exactly which options are best for your business (you can also include cover for your own and customer vehicles) and provide an informed quotation. As always, the more eventualities you cover, the more peace of mind you will have.