Cheap Traders Insurance And The Law

It is a legal requirement in the UK that if you run a motor trade business you need cheap traders insurance. As you know it is illegal to drive on the UK roads without the road risk policy in place and your private auto policy does not cover you when driving customer vehicles.

Again if you sell vehicles and allow your customers to test drive a vehicle before they buy, your policy needs to cover both you and the customer, giving them the ability to drive legally on the road.

Now this may sound like a lot of trouble to go through just to take a quick test drive or to allow a customer to drive around the block a few times, but in the event of an accident you legally have to have a minimum of third party cover to protect the other vehicle or property that could be damaged if you caused the accident.

Other legal requirements you may not be aware of is the minute you hire one or more staff members you have to have employer's liability cover in place. This cover protects you when an employee injures themselves at work. A claim against you for a liability case can amount to thousands and without the right policy, you can end up paying this out of your pocket. In the event that you don't have the money to pay, you may even end up having your assets seized to cover the amount due.

What You Need

Thinking about the legal requirements expected of your business, there are certain criteria that needs to be met when choosing the right policy. Firstly there is the liability cover. Now you know you must have employer's liability cover once you hire your first staff member, but public liability cover is just as important.

Public liability protects you every time a customer steps through your doors. Again a customer injuring themselves can leave you with a huge claim against you, a claim you are legally responsible for.

Then there is professional indemnity cover, another essential cover which can save you money in the long run. Should a customer purchase a vehicle from you which has a fault causing a huge accident on their way home with the car, then this will be a claim against you. Another example is if you carry out repairs and something goes wrong when the customer collects the vehicle, again you will be held responsible.

Cheap traders insurance is a peace of mind for any business owner in the industry, a chance to know that your business is abiding by the law and keeping you safe on a daily basis.