Motor Trade – General Advice
Client’s who are in the Motor Trade industry, or who do work on motor vehicles have a unique range of risks relating to customer’s vehicles that they are working on. The following is a guide to important insurance considerations for client’s who operate in this industry or who work on motor vehicles.
All businesses require this to cover for any claims against them, for bodily injury or property damage; however, liability policies will only pay a third party (customers) if you are negligent. For example, if you correctly lock your premises and secures your client’s vehicles but a vehicle is stolen, a liability policy won’t pay your customer. Also, as standard liability policies do not cover damage you cause to vehicles. You need to insure for “Vehicles in Control” (see below).
Care, Custody, Control
Most liability policies provide this cover. It covers you if your negligence causes damage to goods that belong to others. These goods can include things like motor vehicle parts; however, this cover does not cover vehicles that are registered or required to be registered.
Vehicles in Control
To be covered for damage to your customer’s vehicles caused by your negligence you must take this additional cover
If you drive your customer’s vehicles e.g. testing, you need a driving risk extension to cover damage caused by your negligence to the vehicle or damage to other property whilst you are driving it. This does not cover any damage to the vehicle if you are not negligent e.g. another party is at fault in an accident. It is very important to note that all of the above covers are purely ‘liability’ covers. You must be negligent for the policy to pay a third party (customer). If you are not negligent, then the third party does not get paid for the damage. To cover your customer’s vehicles (or motor vehicle parts) for damage irrespective of whether you are negligent you need to insure
Customers Goods under the Fire and Burglary sections of a Business Pack policy
This is important if you want a policy to pay for loss or damage to your customer’s goods that are at your premises regardless if the damage was caused by your negligence. This also means that your customer’s claim is resolved quickly and without investigation into who’s at fault.