If driving a car on the country's roads can be dangerous enough for a person to buy a car insurance policy then it is more than understandable if a person who has a motor business gets a policy for his whole business as well. If your business involves a lot of vehicles then it would be very beneficial for you to have a motor trade policy, because not having one and being struck by some unfortunate accident can result in the breaking of your proverbial financial back. Still, the concept of a motor trade policy can leave a lot of people confused. Hence, the following are the fundamentals of what a motor trade policy is and what having one means. |
What is a motortrade policy?
As mentioned earlier, this is an insurance policy that has been specifically designed for businesses that have a lot of dealings with vehicles. In effect, on a very basic level, this kind of a policy can be described as an automotive insurance policy that can contain multiple vehicles in it. Therefore, you will be able to include all your business vehicles in such a policy and receive cover for them all. Furthermore, these policies also provide a host of other benefits such as equipment and machinery cover, etc.
What are the financial implications of a motortrade policy?
A motor trade policy, since it is providing cover for more than just a vehicle, would cost you a lot more than a basic automotive policy. One thing worth noting, however, is that with most motor trade policy providers there are no limits to how many vehicles you can include in the policy.
What does a motor trade policy include?
Different motor trade policies would contain different types of features for their clients. However, the following is a list of things that a motortrade policy can include.
1. Stock: For used car or new car dealers, the safety of the existing stock of cars is of paramount importance. Apart from this scenario, there are also other situations where stock protection may be instrumental for the policy holder.
2. Tools: In many trades, people virtually worship the tools of their trade such as smiths, hunters etc. The reason for this is the underlying and inherent dependence on tools and instruments that allow a person to progress. Most decent motor trade policies would also contain a clause towards providing cover for tools, machinery and even premises.
3. Business interruption and road risks: If your business gets interrupted or gets hampered by some kind of a road accident, then it is almost certain that you will suffer significant financial setback. This is why a good motor trade insurance policy should have cover for these two scenarios.
4. Liabilities: As you already know, public and even private liability is something that a businessman has to live with if he plans to grow his business. Therefore, protection against liabilities is one of the most important variables of a motortrade insurance policy.
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