If you run a motor trade importer/exporter business, you are more than likely aware of unforeseen events that can lead you to financial loss. Having the right type and level of importer / exporter insurance to cover you when transporting your vehicles overseas or sending them to the UK, can help compensate you for any unfortunate disruptions to your cargo.
From road risk, goods in transit, marine cargo insurance or vehicle delivery insurance, these are just some areas of cover whether you bring vehicles or specialist car parts into the country or send them overseas. Here is an overview of the options available to your business.
What Cover Do I Need?
Whatever the size of your business, from a self-employed trader to businesses with large premises and teams, there is a level of insurance to suit your needs.
Generally, you will need motor trade road risk insurance when transporting your vehicles in the UK, coverage for your storage facilities, the delivery of vehicles insurance, employers’ and public liability, together with stock and equipment cover.
Road Risk insurance for the Motor Trade
If you operate in the motor trade, road risk insurance is necessary by law. This will cover you for purchasing cars at auction, and enable you, or a named driver on your policy, to drive a vehicle that doesn’t belong to you and is registered on the MID. This means that you are covered in the event of an accident or accidental damage to a vehicle you have just purchased.
Like all vehicle insurance, road risk insurance offers three levels of cover – third party, third party fire and theft and fully comprehensive - but only comprehensive will cover you and your vehicle, as well as the other party who may have sustained damages. Any customer vehicle under your care is covered if there is an accident, and you will be able to claim for personal injury under a fully comprehensive package.
When taking out a policy, you should also be aware that your motor trade risk policy will only indemnify you for driving vehicles registered in the UK. If you are importing second-hand vehicles, you will need a Single Vehicle Approval (SVA) test, applicable to all vehicles less than 10 years old from the date of manufacture.
If you are purchasing cars abroad and intend to drive them back to the UK, you will need insurance from the country in which you purchased the vehicles. Alternatively, you could bring them back on a trailer.
Marine Cargo Insurance
Marine cargo insurance is a form of Goods in Transit Insurance which specifically covers transportation of goods and merchandise from one place to another by sea, rail, road or air.
It covers loss, damage, destruction or theft of goods while they are being transported. Marine cover can include sinking, damage or even pirates, while other modes of transport, such as rail, could include derailment, crashing or overturning.
A good insurance policy will arrange marine cargo insurance that includes coverage of goods during their journey, as well as storage prior to their journey or once received if importing. Policies should be flexible as to the level of cover and can include either named perils or ‘all-risks’ cover.
Vehicle Delivery Insurance
As part of your motor trade insurance policy, having vehicle delivery insurance can give you the additional cover you might need, making sure your vehicles and your customers’ vehicles are insured for motor trade use and they are protected against loss or damage.
With Tradex, vehicle delivery insurance includes your trade plates as part of this policy. Trade plates must be disclosed for entry on the MID, and trade plate insurance covers you for the movement of non-registered and taxed vehicles. Public liability, trade plates, your vehicle, property (building, tools and equipment) and goods in transit can all be covered under vehicle delivery insurance.
Public and Employers’ liability insurance
You may find that your vehicle delivery insurance includes public liability insurance. This is important as it will cover your business if someone is injured in some way by your company or you damage third party property when carrying out work. As well as the damage, it also covers any court fees and compensation claims.
If you employ someone, then it’s illegal not to have employers’ liability insurance. The transportation of vehicles can provide a number of potential risks for employees, including the lifting and moving of cars and containers. This will include court fees and compensation claims brought against an employer for injury or disease as a result of their work.
Tradex understands that every business is different and offers flexible policies to importers and exporters of vehicles to or from the UK, whether you trade from premises or are self-employed, working from home.