Important Motor Insurance Policy Terms That You Should Know
Any business needs to be protected from loss due to an unforeseen event. A Motor Trade business is no exception to this rule. Motor trade insurance is important, as it protects the business from possible losses arising due to theft, fire and other liabilities over which you do not have any control.
Most motor trade insurance companies have experts who give advice in choosing the right policy for the business at the lowest possible premiums. The motor trade business can be run from your residential or office premises. The place of business has no bearing on the premiums that are paid to the insurance companies.
Before you take a motor trade insurance policy, check the details of the policy. It is important the policy that you take covers all business risks. If the standard policy does not cover your business risk, you can ask the insurance company to provide a tailor-made policy. Such policies not only cover all your business risks but can also prove to be cost-effective.
Sometimes the policy that you take may cover some risk that your business may not be prone to. In such situations, you can ask insurance companies for tailor-made policies so you don't have to pay premiums on risk coverage that your business is not prone to.
Motor Trade Insurance requires the policy holder to fulfill certain standards to be eligible to take out a motor insurance policy. The person taking the insurance policy must be aged between 21 and 71 years. The person must be a resident of the United Kingdom for at least a year and must hold a valid United Kingdom drivers' license for at least a year. If the person is convicted for a criminal offense then the motor insurance policy cannot be issued.
Make sure the details that you give to the insurance company are true. Any misrepresentation of information can result in suspension of policy. Also if the driver of the vehicle is convicted of an offense when employed by the business, the motor trade insurance policy can be suspended. Of course, this will depend on the severity of the offense committed by the driver.
It is important that you check the background of the driver before you employ them. This is because if the driver has been disqualified any time during the last five years the policy issued can be suspended. If you apply for a new policy the insurance company will not issue a policy because the driver has been disqualified.
However if the driver that you intend to employ has completed the disqualification period of 5 years, then insurance policy can be issued under normal terms and conditions. It is worth noting that if during employment the driver is disqualified, the policy shall stand suspended.
Drivers who suffer from physical disabilities are normally not issued an insurance policy. However if the DLVA is informed and the physically disabled driver has a valid drivers' license, then an insurance policy may be issued.
If the criminal offense committed by the driver is revealed after the insurance policy is issued, the policy shall be suspended. So, it is imperative that you do a background check on the driver that you wish to employ. If your policy has been rejected previously there is good possibility of the policy being rejected by another insurance company as well. This is because the insurance companies do a background check before they issue an insurance policy.
If the motor trade insurance company finds that your policy has been rejected previously, they may refrain from giving you a fresh policy.
Therefore it is important that you do not hide details from insurance companies and state all details as they are.
About the Author:
Eric Token is a freelance insurance writer that specialises in motor trade insurance. For more information about motor trade insurance visit today.
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