Let’s start with what Car Dealer Insurance actually is. Car dealer insurance is a small section of a much larger insurance market called Motor Trade Insurance. There are a variety of roles and purposes behind Motor Trade which is why it is such a big market. Motor traders can range from car valets to Mechanics to Vehicle Breakers.

This can be broken down even further into what Car Dealer insurance can cover under one policy, therefore meeting the exact needs of the business in question. Car Dealer Insurance covers risks for Public Liability, Employers’ Liability, Vehicles At Premises, Goods In Transit as well as much more.

At Clegg Gifford, we are specialists in Motor Trade insurance so we are able to cover any and all risks that go hand in hand with Motor insurance- this benefits your business as you can then choose exactly what you would like or need on your policy.

So, let’s look at what type of cover Car Dealer Insurance provides in some more depth.

Firstly, there is Road Risks cover- almost all motor trade policies will provide cover for Road Risks. If you need to drive the vehicles you are covering, you need road risks cover. This allows you to drive your own or customer vehicles legally for Motor Trade usage. There is also the possibility of covering personally owned vehicles for social usage if required.

The next most common covers that fall under Car Dealer Insurance are Employers’ Liability and Public Liability cover- Usually Employers’ Liability will come as part of a package, including Public Liability and cover for your shop, workshop or office.

If you operate from a premises that customers visit then it is your responsibility to provide a safe environment. Public liability insurance can provide cover against compensation claims from members of the public who are injured or suffer a loss as a result of your business. Public Liability coverage can also include a Products Liability extension that covers liability arising from products sold as part of your business in the Motor Trade, generally not that applicable for Car Dealers.

If you employ one or more members of staff then it is a legal requirement that you put Employers’ Liability insurance in place. If you don’t have Employers’ Liability cover and you should have then you could be taken to court and prosecuted. Compensation claims could easily go into the tens of thousands, and for a small business, that could be enough to enforce closure. Having the right cover in place can help you avoid the worst.

Other add-ons that are very popular like Vehicles at Premises (VAP), which protects your vehicles when left in an owned site, or Material Damage which can protect your vehicles and other items against any damage are of course available at Clegg Gifford.

Material Damage could be a vital add on for your Car Dealer Insurance. This is because it covers your buildings, contents, stock, computers, tools and diagnostic equipment in the event of sudden and accidental damage. As a Car Dealer this could be vital as Car Dealerships commonly have things like stock in a showroom or warehouse, tools left on site or premises to look after and losing these items without cover as a small business could put a costly weight on cash flow, leading to unneeded and unnecessary stress.

We are able to accommodate those looking at a standalone Motor Trade Road Risk policy, all the way through to a bespoke Commercial Combined offering including add-ons like Liability and Material Damage coverage.