Financial Loss Insurance
The Public Liability extension under a Motor Trade Combined insurance policy referred to as Merchantable Quality is a financial loss insurance extension.
So whats the cover actually do.
This cover is for when someone purchases a product from you, there may be a loss from this but is not caused by personal injury or damage to property, that is the basic cover provided by your Public Liability Insurance section. Its a cover that basically falls in neither the Public Liability or the Product Liability insurance sections but a financial loss occurs as a result of your actions.
Insurers will provide cover to you in respect of legal liability for Financial Loss which happens during your Period of Insurance and for which a claim is made as a result of Products Supplied after the inception of your policy, not being of merchantable quality nor fit for its intended purpose.
This cover extension is usually subject to an inner limit and not the full limits of indemnity provided under the Public Liability Insurance section. This cover is usually limited to £5,000 but that depends on the insurer and the policy.
Some motor trade insurance policies show this quite clearly within its own wording, some do not, they include it within the public liability or products liability section of the policy and is included within the wording. Most policies will have this type of insurance cover included, however if you have difficulty identifying it where its covered and how the insurance cover protects you just give one of the Automotive team a call.
Looking for Financial Loss Insurance?
Let us look at your requirements for this type of cover, being specialist brokers to the sector we have instant access to all the motor trade insurance markets, we provide fast and competitive quotes tailored to your needs.
You may also be interested in: Public Liability Insurance