There will be many factors that you take into consideration when you are looking for a quotation for motor trade insurance. In the first instance you will need to ensure that you meet the minimum legal requirements. You should note that these requirements are just the starting point and good practice might indicate that you need to find a superior package depending on the type of establishment that you are running at the time. In developing a business model for this industry, it is imperative that there are stringent controls on the management of policies and their impact. As a consumer you should take responsibility for looking at the kind of package that is being offered. When there is a claim, that policy will form the protection mechanism against financial ruin.
- Indemnity cover: Sometimes the costs associated with indemnity will find you when you are very vulnerable. The package that you select has to reflect the general priorities that you have as a business. In addition you need to review the repercussions of the business models that you are running. With indemnity cover you will not be required to pay excessive amounts to third parties once the claim is settled. Often consumers make the mistake of assuming that the claim is limited to the value of the vehicle. It can include the medical bills and compensation for any victims that are identified by the courts. Therefore without motor trade insurance, you might be in for a very rude awakening.
- Premises cover: It is anticipated that you will be selecting motor trade insurance for business purposes. Therefore they expect you to have a building or location where you do your work. The people that are working from home need to undertake further negotiations with their broker so that they get the correct quotation for their circumstances. The premises cover might include outlet posts if you are running a multi location business. Mobile garages can proclaim their status on the application form so that they are not excluded when the settlement process begins. In case there is a dispute, the provider might request proof of address including an invoice or company letterhead. These should be backed up by tax returns which indicate that you are a legitimate business entity.
- Demonstration cover: The so called test drive is a major marketing tool for the motor trade industry. Most customers are not willing to take on a vehicle unless they have a clear example of how it works. Therefore you will need to have motor trade insurance for the period when you are driving the car as demonstration exercise. It does not mean that at this stage you can afford to ignore insurance requirements because an accident can happen at any time. The fact that you are carrying a client makes it crucial that you have adequate cover for your business and the vehicle. Often this type of coverage is automatic but you need to confirm it by reading all the policy documents that relate to the specifications of the product.
- Exclusions clauses: Perhaps the most important aspect of the motor trade insurance policy is the list of exclusion clauses. These are items which will not be considered under the general coverage. You need to ensure that you are in a position to challenge some of the decisions that are taken in relation to the policy. If the exclusion clauses appear to be unfair, then the time to deal with them is when you make the application. Do not wait until it is too late before you start complaining about the fact that you are faced with unfair exclusion clauses.