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Understanding What Motor Trader Insurance Means

Before you get a motor trade insurance quote, it is advisable that you understand what motor trade insurance is and the things it covers. Any person who runs a business related to vehicles needs to have motor trade insurance. Some people refer to motor trade insurance as road risk insurance; however, road risk insurance is just a part of motor trade insurance. Businesses that often need motor trade insurance are companies that buy and sell cars, motorbikes, and even vans.

On the other hand, businesses that involve vehicular repairs, servicing, valeting, MOT (Ministry of Transport) testing, and garage renting on their business operations need motor trade insurance, too. Regardless if your business is small or big, you will still need motor trade insurance. And even if you are working full or part-time or if you are the owner or an employee, you will still need to be covered.

It Covers Business Interruptions
Motor trader insurance can cover you when something disrupts your business operations. For example, if a piece of equipment in your business gets damaged and you need to stop your operations for a while, a motor trade insurance policy that includes business interruptions will make the insurer provide revenue protection. It will not totally provide you with the complete amount of profit during your normal business days; however, it still can cover you with the usual expenses you need to deal with like employee salaries. In case the insurer offers trading expenses coverage, the insurer will provide you the money you need to get back to your business if the business interruption damage is crippling.

Assault and Personal Accident
Due to the nature of motor trade business and the products being handled in this industry, theft is one of the biggest felonies you will need to deal with from time to time. Thus, as long as it is theft-related whether it is having personal accidents or encountering an assault during the job (be it you or your employee) any bodily injury or damaged will be covered.

Road Risk
This is the most important part of a motor traders insurance coverage. It can be separated into three categories. And they are:

Comprehensive
Comprehensive provides total coverage for you. It covers vehicles that you own, that your customers own, and any vehicle that you are driving. As long as you are involved or even related to the vehicle that has been in an accident or got damaged, a comprehensive road risk insurance can provide coverage. You can extend this coverage to your family and friends.

Third Party
This is the minimum coverage required by the government for you to operate in the motor trade industry or even drive in the UK. This will cover any third party involved in a motor accident that you were in. It covers people and the vehicles. Your passengers are also included in the coverage. However, it is important to note that you and your vehicle will not be in the coverage. You will just need to hope that the third-party vehicle or vehicle owners insurance will cover you when a road accident happens to you.

Third Party Fire Theft
This coverage includes the previous one and adds coverage for your car, or cars under control or custody, when it gets stolen, damaged during theft, or set on fire.

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