What Does Traders Insurance Cover?
Traders insurance is a broad term used to combine several single covers together. However, if you go by the legal definition, traders insurance is just a third party road risk cover. It covers the named driver in the policy against any third party damage to public property or the public.
All variations of traders insurance will naturally provide third party road risk, however, depending on the insurer, nature of the business and several other factors, the traders insurance may include a lot other things.
Those who operate from home can opt for a trader insurance with fire and theft protection. Such an add-on includes additional clauses in the traders policy document offering indemnity for the damages due to theft, vandalism, and fire. The highest level of cover possible for a home operator is the comprehensive trader policy that includes theft, fire and also indemnity for damages to the named driver and MID registered vehicle being driven.
Now for those operating from a garage or a commercial location other than on public property, the standard trader insurance policy will need a few extra covers. Combined premises is one such cover where in the business premises and any content, including customer vehicles is included. Garages with employees and mechanics will need to invest in employers liability, and if the public is allowed access, then public liability is a must. As you can see, motor trade insurance changes the moment you move from your home address to a garage.
Traders insurance is a holistic term, and though the law says that road risk third party policy is the least anyone needs to become a motor trader, there are a lot of other liabilities that one can include in the insurance. It all depends on you and your needs.