Business Interruption Extensions – Motor Trade
In addition to the standard cover on a motor trade insurance policy you can purchase additional insurance cover specific to your business requirements.
Lets take a look at some of these extensions and why they are useful to you and your business.
An insured incident results in a loss of gas, electricity or water supplies as well as communications (not always on every motor trade policy) to your premises.
How would this affect your business, are these utilities a necessity to how your business operates. This type of cover can come as standard on many Motor Trade Insurance policies but check your provider.
Denial of Access
A neighboring property has caught fire for example, you cannot gain access to your business premises, resulting in a loss of income. Whilst there are many scenarios this is just one, denial of access extension can cover this type of loss.
Again this type of cover can come as standard on many Motor Trade Insurance policies but check your provider first.
Loss of MOT Licence
Covers loss of MOT test income following the withdrawal or suspension of your MOT licence by the department of transport, subject to terms and conditions of your insurance policy. All insurers will exclude loss of licence following a criminal act. Find out more about Loss of MOT Licence cover here.
Unspecified or Specified Customers
Is your business reliant on a certain contract or contract with your customers, what would happen to your business if your customers were to sustain a loss at their premises, how would this affect your business?
You can purchase insurance cover for this circumstance on an unspecified standard limit basis, or as a specified customer with a specific limit. The cover under this extension where a loss occures at your customers premises has to be an insured peril. It DOES NOT cover losses where your customer goes out of business owing you money.
Unspecified or Specified Suppliers
Is your business reliant on a certain supplier or few suppliers ? Again, what would happen if you couldn’t obtain the necessary materials to carry out your business as your supplier had sustained a loss of their own.
You can purchase insurance cover for this circumstance on an unspecified standard limit basis or a specified key supplier with a specific limit.
Loss of your book debt records, this covers the additional costs to reproduce records and to chase debtors following an insured peril. As an example you may have a fire that destroys your accountancy records.
Lessening the Risk As time moves on most businesses should have a lesser risk to this type of exposure. Accounts can be centralised, backed up and taken off premises, remotely backed up at night for instance. Remote backups are simple and cost effective, they require only an internet connection, your days records are then automatically backed up off site.
And then there is the Cloud, whilst still a reasonably modern technology (its actually been around for some time) your accounting system resides on a server away from your premises completely. As you enter information on the screen this is actually being saved at a data center may be hundreds of of miles away. If you have a loss such as a fire then the records are very easily retrieved.
A few things Business Interruption Insurance isn’t
Just because an interruption has occurred at your business premises doesn’t just mean that your motor trade insurance company is going to pay.
This is further explained under the Business Interruption section, BUT examples are that a customer has gone bust owing you money, they have failed to deliver goods because you didn’t pay them, their vehicle broke down, the list goes on. One very important fact is that under your insurance policy conditions it will state that there has to have been a loss that would be covered under the material damage section (property damage)of your insurance.
A motor trade insurance policy would not be any different to any other.
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