A guide to motor trade road risk insurance

Running a motor trade business comes with a fair bit of risk. On a daily basis, you’ll be handling customer vehicles and sometimes taking them for a spin to identify issues or test repairs. Just like a regular driver needs insurance, your business needs cover to protect it financially should one of your or your customer’s vehicles get damaged.

Who is road risk insurance for

What is road risk insurance?

Motor trade road risk insurance, also referred to as road risk insurance, is a type of cover that protects businesses while driving around in client vehicles. Policies can also include cover on business vehicles to make the whole process of insurance more convenient.

Driving customer cars on the job is sometimes necessary, but the consequences of doing so without insurance can be financially and legally damning for your business. When you’re left with a customer vehicle, it’s your responsibility as an organisation to keep it safe while in your possession. You’ll likely be liable for an accident on the road, not the owner of the car.

Who is road risk insurance for?

This type of insurance can be suitable for vehicle recovery, mechanics, garages, body shops, car sales businesses, as well as others. Anyone that may need to drive a customer’s vehicle at some point, and drive their own business vehicles, can benefit from an all-encompassing package to stay covered on the road.

What are the benefits of road risk insurance

It’s often confused with motor trade liability or premises insurance. Liability insurance covers your business in the event of accidental damage to customer vehicles or accidents at work. Premises insurance protects your range of tools and equipment that are so vital in running your business. Road risk policies are just for driving or transporting vehicles on roads, whether your own or a customer’s.

What are the benefits of road risk insurance?

Road risk insurance can give your staff peace of mind when taking customer vehicles out and about or transiting vehicles from A to B. This can help them to focus on the job at hand more effectively and deliver to customer expectations.

Complying with driving and vehicle regulations is key for a motor trade business. Not doing so can have serious financial and legal repercussions, which could disrupt your business proceedings.

Policy providers can tailor insurance packages to suit your business needs. Whether you need the basic requirements to hit the road or comprehensive cover spanning a range of vehicles, road risk insurance is a must for your motor trade business.

Sarah Cantley

Editorial Head at UK Blog for Business & Startup.

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