Insurance Inclusive Of Business Premises And Stock
Motor Trade Insurance also called Traders Insurance is essential for any business that deals with vehicles either as part of their operation or in the entirety. Combined Premises is a type of motor trade insurance aimed at those operating from a business premise with stock and more. Think of it as a garage insurance.
Carrying out services and repairs, valeting and detailing, roadside breakdown service, buying and selling – all qualify for motor trade insurance. If you run any of these services or a combination on business premises that is distinct from your home address, you need a Combined Premises Policy. Forecourts and garages separate from the home address will not be covered under a Road Risks policy and instead are a part of combined premises insurance.
Road Risks covers are typically for the part-time or full-time motor trader operating from home. By law, this is the minimum level of protection you need to work with vehicles not registered to your name. However, such a policy does not account for incidents or accidents at business premises such as a full-fledged garage or a used car lot. That is what a combined premises cover offers.
Combined Premises policy also accounts for stock and spare stored at the business premises. It even includes customer vehicles and any other vehicle that is used to conduct your business. It is a comprehensive package that includes third party liability on public property and roads, stock and spare, tools, equipment and all vehicles in your garage or workplace, depending on what you need.
You need a combined premises policy if you own and operate a business from a location other than your home, where you may or may not employ individuals, keep stock and customer vehicles overnight or for the duration of repairs, enhancements and sale.
Naturally, a combined premises policy does not cover all the risks of a motor trade business, but it is a start and the bare minimum you should have if you run your business from a location other than your home address. Additionally, there is more you can include for higher indemnity and protection from future litigation. These are added as extras on top of a combined premises.
Do you buy and sell used cars? Or maybe you refurbish old cars. You must have a lot where you keep your vehicles and display them to customers. By opting for a combined premises or business contents policy, you protect not just your premises but all the cars in the lot as long as they are not being used for a test drive.
Mechanics and valeting services both need to keep vehicles in the garage until the work is complete. During the time a customer’s car stays in your garage, it is the responsibility of the business, and in the event of an accident, you are liable for damages and compensation. A business premises insurance protects you and your customer in such an event.
You may operate a roadside assistance service for which you store your mobile vans and pickup trucks in your garage. Even these vehicles and the content inside them are covered as long as they stay on your business premises.
Before you apply or ask a quotation for Combined Premises, make sure you qualify for the same. Not all require a motor trade policy and even less need a combined premises cover. In order to be eligible for any business contents motor trade insurance, you will need to furnish proof of your business which can be in the form of receipts for parts and stock, cars sold and purchased. Additionally, you should be aware of the following clauses.
All Vehicles Are Not Included – When you enter a policy, it is mandatory to disclose the kind of vehicles on which you work. Not all insurers provide a blanket cover for all vehicle types.
Trading Location – Where do you primarily operate? Is it your home, maybe from a mobile van or do you have a particular address just for your business? Remember this is a garage insurance hence, only those with an address for their business separate from their home qualify for Combined Premises insurance.
Vehicle Values – Remember that all claim payment in any motor trade insurance is made at trade value of the vehicle(s) involved. Retail price is not considered.