What can a Motor Trade Insurance policy cover me for?
Comprehensive or 3rd party only cover for vehicle risks
Business use for my vehicles plus social domestic and pleasure
Ability to drive customer vehicles for business purposes including testing, collection and delivery etc.
Courtesy and demonstrator use for customers
Flexibility to add and remove vehicles
Cover for customer vehicles in my custody or control
Cover for all of my business assets including buildings, contents, ramps, tools and stock
Cover for all of my legal liabilities including public, products and Employers Liability insurance
Cover for cash including transportation to and from the bank
Personal accident and sickness cover for all employees - possibly under a separate policy
Defective workmanship and sales indemnity
Arrangement for the Statutory Inspection of your lifting and pressure plant
Motor Trade Insurance
The motor trade covers a wide spectrum of businesses from one man band mobile mechanics to large main dealerships of prestige vehicle brands.
Wherever you fit into this spectrum, there is a motor trade insurance product for you. All you need is some guidance from Glentworth as to which one is the most suitable.
Why do you need this insurance?
Can you answer yes to any of these statements?
You have a lot of high value vehicle assets that need protection
You have a workshop with contents to protect
You need someone to cover your legal liabilities and defend you in any court action
You need to protect your customer’s goods
Road risk insurance is one of the few compulsory insurances in the UK
You need to be able to add and delete vehicles easily
Employers Liability is a compulsory insurance even if you only employ persons on a casual basis
Glentworth Insurance Senior Account Executive, Paul Case, provides us with an exceptional service, showing a great deal of knowledge of our industry and the insurance products we require, representing us well with the insurance companies to ensure we always receive the correct level of cover, whilst ensuring our premiums always remain competitively priced.
Tony Instrall, Partner at Fine & Classic LLP
Why use Glentworth for motor traders insurance?
Glentworth has access to all major UK insurers providing motor trade insurance. We have a vast amount of experience in placing all types of motor traders and can guide you through what cover you need to make sure that you stay in business if you suffer a loss.
We are very happy to visit your premises in order to identify the appropriate covers to meet their insurance requirements.
Glentworth will take time to explain clearly the benefits of your policy and any conditions or restrictions that may apply.
If our clients need to make a claim, a familiar face from Glentworth will always be there to help.
Do I need Employers Liability Insurance?
It’s not just about PAYE employees
If you have PAYE employees then it is highly likely that you will need Employers Liability cover. However, that is not the end of the story and there are other instances when you will need it – even for volunteers! Read on.
If you employ subcontractors, or workers on a casual basis you could need Employers Liability cover. The main exception is if you engage Bona Fide Subcontractors (BFSC). It is important for our clients to be able to distinguish for insurance purposes, between a labour only sub-contractor and a bona fide sub-contractor. Understanding the fundamental differences is important to ensure that correct cover and pricing is applied to your insurance policy.
Labour only Subcontractors.
A contractor employs a sub-contractor for their labour only. The labour only sub-contractor (LOSC) does not supply any materials, the LOSC is being supervised by the Contractor.
In this context there is a master and servant relationship. The contractor’s liability towards the LOSC, and arising out of the LOSC’s activity when working for them, is considered the same as if the LOSC was a direct employee.
Since this is regarded as a master and servant relationship an Employers Liability and Public Liability exposure exists. Even if the LOSC has their own insurance i.e. Public Liability. The contractor would not be able to subrogate against it. There is case law setting precedents to support this.
Bona Fide Subcontractor (BFSC).
A master and servant relationship would not be considered to be in existence.
The BFSC would be providing materials, labour and supervising their own work and invoicing accordingly. There is no Employers Liability risk but contingent Public Liability cover is required. It is likely that it will be warranted under your own insurance that you check that each BFSC holds adequate Public Liability insurance.