Types of Trade Insurance
The word “trade insurance” is the correct name given to this category of insurance especially the is highly recommended for the people who work in the automobile industry. This comprises but is not restricted to: dealers, mechanics, retailers, wholesalers, and suppliers. Anyone who deals in any of the above mentioned items can be covered by a trade insurance. The coverage is designed specifically for the industry and all the workers and business owners who deal in the same. So, who are the parties covered under the umbrella of this cover?
The three major categories of people covered under a trade insurance policy are dealers, mechanics and suppliers. As the names suggest, the dealers’ section will cover any repairs, installations, modifications, replacements and replacement’s that are done by your dealership in the course of your business. It also covers the vehicles that you have on your premises. On the other hand, your mechanic will cover the repairs, installations, modifications, replacements and any parts that are used in the process of repairing your vehicle.
On the other hand, your suppliers will also be insured under a trade insurance policy. They will also be protected if they transport any part or product from your business premises to another location. For example, you need to import a new camper from the USA and you need to deliver it to your overseas buyer. If your supplier is not covered under the terms of the insurance policy, you will be liable to pay for the damages to the goods while they are being transported. Similarly, if your business premises are damaged or your customers find problems with the products delivered to them, you will be held liable for all these damages.
The third category of persons covered by trade insurance are your employees or agents who are engaged in the performance of duties in connection with your business. As an employee, you can benefit from having full liability coverage to protect your financial assets. Similarly, as an agent, you can benefit from having your liability limited to those tasks which are defined in the policy. You can also get additional coverage for property damage and for punitive damages.
However, as a trader, you may not own any customer vehicles. In such circumstances, you will need to obtain separate coverage for your personal vehicles and for your customer vehicles. This is known as the ‘other vehicles’ category. If you have trade insurance for your personal cars and trucks, you will get coverage for repair expenses for your cars and trucks that fall under the other vehicles category. However, the other vehicle’s policy covers only motorbikes, motorcycles and snowmobiles.
The fourth type of persons who will be covered by a trade insurance policy are those who rent, lease or lend their businesses’ vehicles. In these instances, the owner of the vehicle will be required to submit a comprehensive policy. The cover under this category will vary depending on the insurance provider. It might cover for damages for any injury caused to an employee or for any legal claims made against the company, but might exclude third-party claims such as damage caused by customers’ vehicles while travelling on the company’s behalf.
The fifth type of person who might need a trade insurance policy would be the ones involved in the distribution, repair and collection of goods. These include the goods in transit category. This type of protection may be excluded by some insurance providers depending on their specific policy. You may want to confirm that it does cover in case you ship overseas and need to have your items repaired. In addition to this, it could cover your employees, if you employ them, during any accident that occurs outside the workplace. It could also cover you if you have employees engaged in a particular trade and those employees get injured as a result of that trade.
You need to keep in mind that different types of businesses and different types of people will require different types of policies. Therefore, you should ask around and compare the different types of policies until you find one that suits your business needs. Shop around and speak to different insurance brokers until you get one that you think suits your requirements. Never settle for the first quote that you are given. Make sure you do thorough research and get several quotes before making any decisions.