Do I need liability insurance and if so, which type?
Liability insurance is designed to protect you in the instance that a claim was made against your business. There are several categories of liability insurance, but the main two you should be concerned with when buying motor trade liability insurance, are public and employers.
If you are likely to come into contact with members of the public within work such as driving vehicles on the roads or allowing customers into your workshop or showroom then you will need public liability insurance. This covers you if there were to be an accident involving a member of the public related to your work.
If you employ even one member of staff then you will by law, need at least £5 million worth of employer’s liability insurance. This covers you in the instance that someone had an accident or developed an illness due to conditions in the work place. If you are self-employed or just employ one member of your own family then you will not need this cover.
You can buy liability insurance as part of a combined policy or as an extra stand-alone policy. It usually works out cheaper to buy both together, however you may want separate policies if you only need one type.