Under the UK law, those engaged in the motor trade business are required to obtain an insurance policy which covers every aspect of the business. The purpose of this is to protect the business from the effects of accidents and similar risks which, in turn, creates a positive impact on the countrys economy. And since there are several types of policies to choose from, there will always be one which perfectly matches the specific needs of certain businesses, be they big or small. However, traders are often lost as to where they should begin. They often have questions about which among the policies would best fit their type of business, insurance quotation issues, and other similar concerns. Fortunately, there are only three steps to help traders decide on their dilemma.
1. The first step is to make a careful assessment of the type of the business one is operating. For example, a trader engaged in a small-scale vehicle buy-and-sell business needs a different type of traders insurance policy from that of a person running a MOT centre. The trader must also assess if he has employees who should be covered by liability insurance so that they may be protected while driving.
2. The second step is for the trader to determine the coverage he wants based on the road risk level. There are three options to choose from, namely the Third Party insurance, Third Party Fire and Theft insurance, and the Comprehensive insurance. The first option offers basic damage coverage to third parties, and is usually the cheapest. The second option offers both damage coverage to third parties, as well as indemnity to fire and theft-related damages to vehicles which are within the custody of the trader. The last option offers the broadest coverage, and includes indemnity for accidental damage to vehicles these vehicles may either belong to third parties, those under the traders control, or even his own.
3. The third step is for the trader to determine the possible liabilities he may incur in the natural course of his business. Liability insurance is divided into public liability, product liability, and employers liability. Public liability insurance covers damages caused to the public, which also includes injuries sustained by customers within the business premises. The second type insures the use of quality products, and assures the customer against hazards related to faulty items. The employers liability insurance, on the other hand, is a legal requirement which aims to provide coverage to employees in case of untoward incidences while at work.
To conclude, searching for the best traders insurance policy requires a decent amount of time for appropriate research work. A trader must keep in mind that the purpose of these policies is to afford additional protection to his business and finances. And for that reason alone, he must make sure that he will be investing his money in something which meets his specific needs. With the help of these steps, traders can be guided in narrowing down their choices in order to select only the best.