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What is Vehicle Sales Insurance?
Vehicle sales insurance will vary depending on the business that needs coverage. The primary insurance for vehicle dealers is road risk insurance.
Garage or public liability insurance and stock of vehicles cover which will cover third-party property damage that may occur at the dealership, as well as the stock held at premises are often included in tailored packages.
Risks associated with vehicle sales and dealerships are theft and vandalism as well as natural disasters and the potential for collisions, especially for customers test driving vehicles when considering a purchase.
If your vehicle sales company has employees working for you then you will have to have employers' liability insurance legally to cover any potential claims from employees against the business if they’re injured on the job or feel they’ve been wrongfully terminated, harassed or discriminated against.
Other packages that can be added to vehicle sales insurance are policies to cover cyber threats, property insurance to cover the physical assets of the dealership, and business interruption coverage as well as many other customisable products.
What Insurance Do Vehicle Sales Agents Need?
Vehicle sales agents primarily need to have cover to drive personal and stock vehicles on the road. Many vehicle sales agents will require cover for a large quantity of valuable stock they hold, as well as adequate protection to cover the property and employees the business has.
Clearly, the size of the business will also impact the coverage needed as a smaller business with a modest number of used vehicles for sale won’t need as high a level of cover as a large, branded dealership with dozens and dozens of vehicles for sale.
However, when customers come to consider a purchase, they will often want to test drive their potential vehicle and this requires additional cover. Cover for trade plates, often automatically included in quoted premiums, is also needed to give protection to those driving cars on the road which they don’t personally own for motor trade purposes.
The property owned by the business will also need to be covered against vandalism, theft, fire and natural disasters which could ruin the property, furniture, computers, equipment and tools as well as the vehicles, owned by the company, that are for sale, or cause the business to cease trading – causing loss of earnings to owner and employees alike.
The insurance that your business needs will be as unique as you are, which is why it’s best to contact one of our expert team members to discuss your requirements and receive a bespoke, free, no-obligation quote.
Who Needs Vehicle Sales Insurance?
Anyone who is involved in the sales or trade of vehicles of any type will need vehicle sales insurance, whether they’re a sole trader or a large dealership. Those who need vehicle sales insurance are typically:
Independent dealers or large franchise dealerships selling new or used vehicles.
Similar to car dealerships but focused on selling motorcycles.
Commercial vehicle dealerships
Those who specialise in the sale of commercial vehicles such as vans, trucks or public service vehicles.
Recreational and caravan dealers
Businesses that sell motorhomes, trailers and caravans.
Vehicle importers and exporters
Those bringing vehicles into or out of the country will need specific coverage – especially while in the UK.
Online vehicle marketplaces
While people can purchase vehicles online, they are often still held in parking lots or holding areas prior to being sold.
The Benefits of Vehicle Sales Insurance
There are many benefits of having a good insurance policy when you’re in the vehicle sales sector, such as:
Some forms of insurance are required legally, such as road risk for driving vehicles on the road without insuring them individually and employer’s liability.
Guarding against unforeseen major expenses, insurance provides a safety net – leading to the long-term sustainability of the business.
Your insurance can guard against any issues that might cause your business to halt temporarily – giving financial support to you and your employees.
Peace of Mind
Knowing potential risks are covered by your policy will allow you to focus on the business, growth and customer service rather than worrying about potential setbacks.
Covers the business against any large claims against it if it’s deemed responsible for damage or injuries to third parties, the public or employees.
For businesses that deal in vehicle sales, road risk insurance pays for losses or damages sustained while the vehicle is being driven and whilst at the home address, during test drives and optionally whilst in transit, this insurance helps guard against damage, theft and third-party liability.
Individual situations will determine if your vehicle sales business needs employer’s liability insurance. If you have employees, UK law usually requires you to obtain this insurance to cover any work-related injuries or illnesses they sustain while working.
There are many options for additional coverage from Prime Cover, including trade plate cover, liability cover, loss of income cover, tools and equipment cover, directors’ and officers’ cover and much more. Contact our team today to discuss all additional options for vehicle sales insurance.