Every business owner knows that to succeed there will be some degree of risk associated with the assessment of their business targets. Even so, within certain aspects of a business there is one risk that should always be avoided and that is the risk without taking out the correct insurance. In the United Kingdom, it is a requirement to ensure that your business is at least fully protected with Employers Liability Insurance. Although, in the case of Public Liability Insurance, there is no such requirement unless the business in question is involved in Equestrian activities. However, any Company that is involved within the Motor Trade industry should consider that avoiding taking out an adequate policy to cover Public Liability could be potentially disastrous to that business.
When you start a business, searching out all the relevant insurance policies can be a time consuming and daunting task. In the case of a Motor Trader it is necessary to assess what needs to be covered, this could include, employees, stock, buildings and contents and almost certainly customers. So finding an individual policy that will provide cover for all those aspects can be expensive and in most cases very confusing. However, a Motor Trade policy will be specifically designed to ensure coverage for the activities that business is involved in. Furthermore, considering that not all motor trade business are exactly the same, most policies can be adapted to suit the business’s exact needs.
A Motor Trade policy will in most circumstances cover Employment Liability, this is a legal requirement. This particular coverage will assist with protecting the business’s employees if they were to be involved in an accident during the course of there daily duties. However, it is the Business owners decision whether to take further cover in the way of Public Liability Insurance . This is an option that should be seriously considered as not protecting customers could spell disaster for your business especially if you are a Sole Trader or a small business.
When searching for insurance, whether that’s a standard Motor Traders policy or one that includes Public Liability, don’t be afraid to shop around and compare quotes from different companies. In order to get a quote suited to the business needs, it is a requirement to provide all the information regarding the business’s activities. Once given a quote it is imperative that all the terms and conditions of that policy are understood fully, as missing something at this stage or not being aware of any legislation relevant to the business’s activities could see the policy being invalidated and the insurance company having the right to refuse to payout on any claim if you they have not been notified of any important aspects or changes within the business.
It cannot be understated how important insurance cover is for a business whether it’s large or small. As mentioned, Employee Liability is a mandatory requirement however public liability is not unless for certain activities. For a Motor Trader, the likelihood that the business will interact with the public is very high, so on that basis, insurance cover to protect your customers is simply a must.