A common question we are asked by car valeters is whether they should buy car valeters motor trade insurance, "surely we just need to cover our van?"
Well, in theory, that might seem correct, but this can leave you with some potential gaps in your cover, which could prove costly.
Commercial Vehicle vs Road Risks Cover
A van policy, or fleet insurance policy if you have more than one vehicle, will only cover the vehicles notified under the policy, meaning that both you and your employees could not drive any other vehicles in connection with your business.
It might be that your standard practice is to arrive at your customers’ home or premises, clean the vehicle(s) and leave, but what if the customer asks you to move a car off the drive and you reverse into a post or worse still, a pedestrian?
The ability to collect or drop off vehicles could also open additional revenue streams where companies do not allow vehicle cleaning on-site.
What cover will I get under a Motor Trade Road Risks Policy?
A Traders Policy will cover all of your own vehicles and any customers’ vehicles driven in connection with your business.
You will typically specify a vehicle limit which will be the maximum indemnity your Insurers will payout in the event of a claim for either your own or customer-owned vehicle.
Is Trade Cover expensive?
The simple answer is no, a car valeting business will often be deemed as a higher risk under a van insurance policy due to motor trade connection.
However, specialist trade policies understand the complexities of the industry, and due to economies of scale can often work out cheaper than a commercial vehicle contract!
Indemnity limits start from as little as £10,000 upwards for Comprehensive or Third Party Fire & Theft cover allowing policies to be tailored to your specific requirements.
What about other covers?
A Motor Trade policy can be extended to include all the different options you need to protect your business, the critical areas for most car valeters are:
- Public Liability Insurance – To cover legal liabilities arising from claims by customers or members of the public for injury or damage to property caused by the actions of you or your employees. For example, a member of the public slips on the wet floor, while you are cleaning a car, and breaks their arm.
- Products Liability Insurance – Normally purchased alongside Public Liability, covering your legal liabilities from claims arising for injury or damage to property as a result of products you have provided. For example, remember that new polish you sold Bob? He’s now claiming it’s ruined his paintwork!
- Employers Liability Insurance – If you have any employees you are required by law to arrange Employers Liability Insurance to indemnify you against claims by employees who are injured in the course of their daily employment and hold you responsible. For example, an employee is electrocuted while using a pressure washer and claims the switch was faulty.
- Tools & Equipment – To cover pressure washers and all other tools and materials of the trade.
- Premises – If you operate from premises you will need to consider insuring the building (if you own the property), as well as any contents or fixtures and fittings. If you keep customers vehicles at the premises, you will also require stock of vehicles cover in case a car is stolen overnight
- Legal Expenses – Legal assistance to recover any uninsured losses or injury in the event of a non-fault from the responsible party (such as a policy excess). Most policies also provide a legal helpline to assist with day-to-day legal advice and support.
- Office / Home office – If you are mobile but complete your paperwork at home, chances are you have business equipment stored at home. You need to ensure that this is covered. Either by your household insurance or as an extension of your trade policy. Most home insurance providers will offer cover for office equipment, but you will need to notify accordingly.
Next Steps – Why not get a FREE review of your Business Insurance requirements?
As businesses grow, it’s easy to miss items such as Insurance as you focus on developing new customers.
A specialist motor trade insurance broker, such as Insync, will be able to help you navigate through the complexities to ensure you have the right car valeting insurance policy to protect your business at the right price.
Arrange a FREE review or consultation via our website, www.insyncinsurance.co.uk or call us on 0330 124 0730.