Occupational Hazards and Motor Trade Insurance
The provider will look at the occupational status of the applicant before considering motor trade insurance. There are various dimensions to this status including whether you are on a part time basis or whether you work full time. There will be considerations of whether you work from home or are in effect a mobile employee. The type of work that you do might require that you get additional coverage or you pay a high premium in order to cover the risks that are associated with the policy.
- Looking at the case of part time entrepreneurs: Many people have additional occupations and then ride the garage on the side. They might even be employing people to represent them for half the day. These details will form part of the negotiation for the motor trade insurance policy. In most cases the provider is very flexible and they are happy to assist the applicant in any way possible. For this to happen, honesty and openness will be required. The terms and conditions will probably include references to the work status of the applicant. It is at this point that the issues will be discussed.
- Business people that work from home: If you have converted part of your home for the garage business, you need to inform the motor trade insurance provider so that they can give you the right quotation to cover the risks that are associated with the business. Working from home is not the same as having a separate business premises. This information will come to light on the application form and might have some implications for your home insurance policy.
- Luxury and specialist dealers: If you deal with luxury or high performance vehicles, then your motor trade insurance premium will reflect the additional risk. Do not use the policy for standard vehicles to cover the luxury cars. The provider has to have a clear understanding of the risks that they are taking on. They will not do an initial investigation unless you are attempting to make a claim or there is something that is glaringly wrong with your application. There are specialist providers that do not really mind whether you are dealing in high risk vehicles.
- Salvaging and other risky business: There are certain business activities which are considered to be of a high risk. You should be prepared to be an additional sum on the premium for the motor trade insurance policy just because of the perceived risk that they bring to the table. In all probability the provider will ask you to state the business that you are working in during the application process. This will enable them to consult the sliding scale of charges so that they can protect their investment from sundry claims. On the other hand there are some activities which are considered to be of a low risk. In those circumstances you will get a discount on the insurance policy if you are working in these industries.
- Previous history with similar insurance policies: If you have had motor trade insurance before, the current provider will look at your claims history. This information is readily available from the previous provider. In fact it might be part of the application process that you need to go through. Make sure that you are providing accurate information as you deal with the processes. With the right information you will be able to secure coverage for your vehicles across the range of activities that you participate in. There are “No Claims Discount” or NCD schemes for motor trade insurance if you can prove that you have been a careful driver all along.