Which types of businesses will require motor trade insurance?
If you own a business that involves the possession of vehicles such as cars, vans or motorbikes, you will need motor trade insurance. This can include traders who buy and sell vehicles, mechanics who repair vehicles or MOT centres that test vehicles.
Regardless of whether you have a business as a solo driveway mechanic or a large vehicle trading company who can be handling hundreds of vehicles at one time, you will need motor trade insurance to cover the vehicles under your ‘care, control and custody.’ If you earn an income (even as a part time job) by handling multiple vehicles, then you are responsible for insuring them.
If your company partakes in any of the following activities then you should speak to a motor trade specialist to get an appropriate policy. Such activities include buying and selling vehicles, repairing, servicing or valeting vehicles, restoring old or classic cars, MOT testing, car washing or vehicle recovery operations.
However different businesses will have different insurance requirements dependent on the number of vehicles they come into contact with, the value of the vehicles they handle, the business premises and public access and also whether they have employees.