What is Motor Trade Insurance?
Motor trade insurance is designed specifically for individuals or businesses involved in buying, selling, repairing, or maintaining vehicles. It covers a wide range of activities, from workshop operations to buying and selling cars. Understanding the various components of motor trade insurance is essential for protecting your business and assets.
Types of Motor Trade Insurance
Road Risk Insurance: Coverage for vehicles that are being driven on the road, whether it’s for test driving, delivery, or moving cars between locations.
Liability Insurance: Protects against third-party claims, ensuring you're covered for accidents that happen on-site or due to your business activities.
Trade Plate Insurance: Essential for businesses that need to move vehicles without registering them.
Learn More: Motor Trade Insurance Application Process
Who Needs Motor Trade Insurance?
Motor trade insurance is crucial for anyone running an automotive-related business. Whether you're a car dealer, mechanic, panel beater, or vehicle repair shop owner, this insurance protects you against a variety of risks. Common business types include:
Car Dealers
Mechanics and Auto Repair Shops
Car Traders
Mobile Mechanics
Panel Beaters
Specialty Car Restorations and Customization
Key Coverage Options for Motor Trade Insurance
Motor Vehicle Trade Insurance: Covers vehicles owned or under the care of the business, from accident damage to theft.
Public Liability Insurance: Protects against third-party claims if a customer is injured on your premises or a vehicle causes damage.
Employers Liability Insurance: If you have employees, this protects your business against claims made by workers.
Motor Trade Road Risk Insurance: Vital for businesses that move cars frequently; covers cars on the road for business purposes.
Learn More: Fundamentals of Motor Trade Insurance Coverage
Why Choose ABPhillips for Exclusive Motor Trade Insurance?
Our expert team have worked with the insurers to develop an exclusive Motor Trade insurance facility that's not only more affordable than our competitors, but has you really covered for the risks you deal with in today's environment.
When you insure with AB Phillips, our exclusive motor trade deal can get you really covered with the following extensions:
Faulty workmanship cover more than double industry standard rate.
Free employee tools cover up to $20,000 per employee.
Work on watercraft up to 12 meters in length (industry standard policy wording is 8 meters);
Electronic Equipment & Machinery Breakdown covers – can include cover for business interruption and loss of income;
Driving risk cover for workshop employees*
Automatic inclusion of claims preparation and increased cost of working covers.
Liability cover extends to the transfer of computer virus to vehicle ECUs.
*Covers vehicles driven without Test Plates if every effort has been made to check if the vehicle was registered
The Motor Trade faces ongoing risks every day and these risks are constantly evolving. As technology progresses and vehicles become ever more sophisticated, traditional insurance policies can struggle to keep up.
Traditional risks such as Fire, Theft and Public Liability are now being replaced by risks around Allegations of Faulty Workmanship (Product Liability), Cyber damage, Managerial Liability and staffing risks such as WHS, Workers Compensation and Management risks.
AB Phillips Motor Trades is a specialist division within Austbrokers network that focuses solely on the Motor Trade and Aftermarket industry.
Cyber Insurance
Many in the Motor Trade think Cyber cover isn't relevant to them, but with hackers targeting small businesses at an alarming rate, any business that holds customer data can be the subject of a malware attack, or database ransom. On top of this, when you're connected to larger sites for online ordering, or a car manufacturer for vehicle analysis, and a malware attack is found to have originated from your I.T. environment you can be held liable if the larger site is breached.
Thanks to recently updated privacy laws, owners are exposed to expensive enquiries and potential fines up to $1.7m for businesses and $340,000 for an individual. Plus, reputational damage for your business can cause a huge loss of customers. All this means Cyber Insurance is a must-have for anyone in the Motor Trades Industry.
Management Liability Protection
As a business director, every day presents new risks that can leave your own personal assets exposed. Directors are responsible for the risk management of their company but are often unaware of their full legal responsibilities. As company revenue increases, the liability exposure also increases for directors, putting personal wealth at risk. In some cases managers and employees can also be exposed.
Management Liability policies protect your personal assets to claims made against you from actions brought by Employees, Regulators, Work Cover Authorities, Competitors, and clients, and cover areas such as: Business Failure, Regulatory Investigations, Employment Practices Claims, Employee Theft and Regulatory Actions.
Employee advice when you need it
Running a business can be hard but managing your people doesn't have to be. It's why AB Phillips has developed the HRAnyhere On Demand subscription service. It is the cost-effective way to make sure you and your business are fulfilling all your obligations as an employer. For one low, annual subscription, you'll get on-call expert advice via phone or email on every aspect of being an employer, from fulfilling entitlements and your responsibilities to managing incidents and terminations, and everything in between.
