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Motor Trade Insurance

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As specialists in the arrangement of combined motor trade insurance in the UK, Blackfriars provides expert assistance and highly competitive rates for combined motor trade insurance for those involved in all aspects of the motor trade. From Main Dealers to Mobile Mechanics, complete the questionnaire and submit to obtain our most competitive rates from our range of motor trade insurers.

The combined motor trade insurance product is suitable for those who require motor trade road risks insurance and combined insurance to cover additional property and liability insurance risks.

What cover is available under the combined motor trade insurance policy?

Road Risks

provides insurance for the business in respect of vehicles belonging to the business, or in their custody or control in connection with the insured’s business as a motor trader. Many persons believe that this class of insurance covers the policyholder or any authorised driver to drive “any vehicle, any time” – this not true, and you should carefully consider the definition set out above. A good example of this common mistake is that the private vehicles of directors of a limited company are not insured by virtue of this definition.

It is true that the cover under the policy may extend to cover Social Domestic and Pleasure use, and also extend to include non-employees as drivers, but these are not standard extensions and once again you should clearly state your requirements for such cover.

Cover is generally available as Third Party, Third Party Fire and Theft or Comprehensive. These levels of cover are consistent with the common meaning, but it should be noted that cover will not be provided for loss or damage to vehicles whilst at the business premises of the policyholder.

Other key points to note are;

  • There may be a limit to the maximum amount payable in respect of damage to vehicles.
  • Cover may be arranged on an open driving basis for all employees or more usually on a named driver basis – you must ensure that these details are updated with Insurers as required.
  • No Claims Bonus – this is allowed subject to evidence of claim free insured motoring. The scales are not as dramatic as provided under private car insurance, but do contribute to significantly reduced premiums.
  • Any trade plates within the business must be declared and cover is available for vehicles driven under these plates providing that the use of the plate is consistent with the appropriate regulations.


Protection against claims arising out of the legal liability to thirds parties and also employees arising in the course of the insured’s business, consisting of the following.

Employers Liability

Under the Employers Liability (Compulsory Insurance) Act 1969, all employers, must hold current Employers Liability insurance in respect of their liabilities to any employees under their control. This equally applies to all Limited Companies, even when the only employees of the business are also directors/shareholders. The common limit of Indemnity for this insurance is £10,000,000, other limits may be requested, but £5,000,000 is the current minimum set by EC Law. For a more detailed explanation of Employers Liability Insurance please see our Employers Liability Page.

Public Liability.

This offers protection for the business in respect of third party claims for injury and property arising out of and in course of the operation of the business. This cover is not legally required, but in the current litigious society is an essential protection for personal and business assets.

More information on Public Liability Insurance may be found at our Public Liability page, but there are some specific points of interest in motor trade insurance that must be borne in mind. These extension are available to motor trade cover, these are not included as standard and cover must be requested for these;

Sales Indemnity – protection against claims arising out of the sale or supply of defective vehicles

Defective Workmanship – also called Repair, Servicing and Maintenance, provides protection against losses arising as a result of failure of works that have been undertaken.

Internal Risks

Motor Trade Internal Risks picks up all the covers that are generally required by motor traders other than the Road Risks. The Liability insurances, described above, may be arranged on their own, but generally form part of this broader category.

In addition to the liabilities these other covers are available;

Property Damage

Cover for loss or damage to customers or own stock vehicles whilst at the business premises, buildings insurance, contents insurance and cover for additional stock.

Business Interruption.

Loss of profits insurance that will provide financial recompense following a reduction in business following an insured incident under the property damage section of the policy e.g. when a building is destroyed by fire, or there is an interruption in the Public Services.

Loss of Money

Loss of business cash and also wrongful conversion, protecting traders where a vehicle is purchased in good faith from a person whom it later transpires does not have the right to sell. The cover is subject to the trader having taken al reasonable steps to ensure that the seller is legally entitled to sell the vehicle.

Goods In Transit

Protection against loss or damage to vehicles and/or other stock and equipment whilst in the course of transit away from the traders premises.

Engineering Inspection

This is not an insurance product as such, but provides the trader with an inspection schedule for all plant and equipment, such as lifting and pressure plant, as is required by law. The inspections are undertaken by insurance companies or third party inspectors working on the Insurers behalf.

If you require a quote for motor trade road risks only please follow this link.

Please complete and submit the form for a combined motor trade insurance quote or alternatively, please call 0161 300 2930 during office hours for immediate assistance.