The term ‘motor business’ defines a wide range of companies in the UK. It can include everything from car sales to service and repair. It is one of the largest sectors in the UK, and represents 14.5% of all enterprises. It contributed 15.8 billion to the economy in 2016. It encompasses new car sales and used car forecourts, to mobile tyre fitters. It can also encompass vehicle recovery and delivery and much more.
In 2016 there were 370,000 motoring enterprises operating in the UK, according to the Office of National Statistics. With such a diversity of organisations there is not a one size fits all agreement for this industry.
Different companies have different requirements. Underwriters are aware of this fact, and as such there are a wide choice of policies on the market. Each is designed for a particular type of enterprise. Insurance Brokers can help enhance your knowledge and help you to gain a greater understanding of the variety of coverage in this sector.
What must businesses choose from?
For example, there are agreements designed specifically for part time traders. Work-from-home setups and those with premises have different risk levels. There are even special agreements available for mobile technicians, such as tyre fitters. This type of policy will offer the option of tools in transit coverage. At the other end of the spectrum is coverage suitable for used car supermarkets. With a high turnover of vehicles, as well as staff and countless test drives to cover, owners need peace of mind.
Whether a new or established car trader; whether an independent dealer in Texas or a franchise owner in the UK – finding the best policy can be difficult. The purchaser must navigate through Employers Liability, Limited Liability, Premises, Road Risks, and more. And this is just the start! Alongside this the buyer must gain an understanding what each of these is, and the role they play. So, how does an entrepreneur find the best coverage?
What can an owner do to make the search easier?
Because the choice is so diverse, working with a broker is a popular choice. They typically offer a free and independent service to find an agreement to match requirements. They are experts in small print and it is this that usually allows them to save money for businesses in the long run. They are also able to know when it is beneficial to develop a bespoke product in conjunction with underwriters.
Overall most companies would be set to benefit from choosing a combined policy. This is a package including all of the most common insurances taken out by car companies. By having a sole underwriter for everything most enterprises see a reduction in costs. Companies in this niche often find that it reduces the administration. Also in case of a claim they are able to deal with just one underwriter. Leaving the owners or administrator free to look after other important tasks.
In conclusion the best insurance is the policy that protects the business when they need it, but does not cost more than necessary.