Comprehensive Guide to Auto Dealership Insurance Options
This article provides a detailed overview of auto dealership insurance, highlighting its importance for businesses in the automotive sector. It covers various insurance types, including road risk, combined, and liability coverage, tailored to different business operations like repair shops, showrooms, and importers. The piece emphasizes the need for customizable policies that protect against theft, damage, liability claims, and business interruptions, ensuring that automotive businesses are well-covered for all potential risks and liabilities.
Understanding Auto Dealership Insurance Coverage
Auto dealship insurance, also known as motor trade insurance, is essential for businesses operating within the automotive industry. It provides protection not only for business owners but also for their vehicles, equipment, employees, and customers. This policy consolidates various coverage types, enabling seamless management of risks related to accidents, theft, vandalism, and other damages. It benefits a wide range of businesses such as car showrooms, repair shops, vehicle importers, auction houses, breakdown services, MOT centers, mechanics, and specialty garages, ensuring comprehensive coverage tailored to each type of operation.
Types of Insurance Coverage
Selecting the appropriate coverage is crucial. Each policy is customized based on business needs. Common coverage options include:
Road Risk
Essential for motor trade businesses, this coverage can be basic or comprehensive. A third-party policy offers affordability and covers fire and theft, while a full comprehensive policy protects against all collision damages, including those caused by employees.
Combined Cover
Ideal for businesses with premises, the combined policy extends protection to stolen or damaged vehicles as well as property and buildings.
Part-Time Policy
Provides flexible coverage for those operating intermittently, ensuring protection only when needed.
Additional coverage options include:
Public Liability
Protects against claims arising from accidents or injuries involving customers or visitors on your premises, especially when working on customer vehicles.
Employer's Liability
Safeguards against claims from employees injured or harmed on the job.
Legal Liability
Covers legal expenses associated with defending liability claims, especially important when transporting customer vehicles.
Additional considerations you should be aware of:
Insurers typically require proof of active trading operations.
Coverage applies to vehicles owned or operated in connection with your trade, including those in your custody for over 14 days.
Policies often cover property damage, including machinery, tools, and stock, as well as business interruption to replace lost income during repairs.
Liability policies extend to various exposures unique to the automotive trade, including defective workmanship, sales indemnity, and transit goods.
Specialized sections in policies address the specific needs of motor trade businesses, ensuring comprehensive protection.
