Public Liability Insurance

Public Liability Insurance, whatever you do, whether in the motor trade or indeed any other business has to be considered as an absolute minimum type of cover. Without it you expose not only your business but yourself if you are a sole trader/partnership.

So what is Motor Trade Public Liability Insurance? Liability Insurance for any business can be quite complex and is out of the scope of this content. Motor Trade Public Liability Liability Insurance works similarly to any other liability insurance, firstly you are going to have to be found negligent in what you have done, but generally an incident has to have occured that has caused Loss, Damage or Injury to a Third Party. A Third Party is the person which you have caused the loss to.

So, lets look at an example of this cover

There are of course hundreds of different types of scenario when it comes to Motor Trade Public Liability Insurance. Whilst its always sensible to keep your customers as far away from your workshop as possible, there may be times when this may be unavoidable. You invite a customer into your workshop to establish a fault with a vehicle, unfamilier territory for your customer, whilst approching the vehicle, the customer trips on an airline, falls and hits his head on the tyre balancer, whilst screaming and evidently dazed by this he stumbles backwards over the trolly jack falls backward and into the pit, once he comes round its clear that he has damaged his foot, his knee and the back of his head.

Ok, so just a little extreme maybe but stranger things have happened. Whilst your customer is clearly injured by his adventure down your pit the fact is its very likely that a claim for compensation is going to be following anytime soon. This claim is certainly going to involve a solicitor somewhere along the line. Consider what will happen if you don’t have Motor Trade Public Liability in place, put asside any compensation that may be awarded, just the legal fees are going to be substancial.

On a winters day you fail to adequately grit or clear the entrance to your reception area, neither do you provide adequate signage to say that the floor, either inside or outside slippery, whilst to most is pretty evident that its cold, icy, potententyially slippery – if someone injures themself whilst on your premises and you have not taken reasonable care to avoid this happening its highly likely that in the event of loss or injury you will be held responsible.

Whilst in your reception a customer tears an item of clothing on an exposed item… your fault!

As you can see the potential for something to happen is enormouse, the legal costs are rediculous not to mention the compensation that is paid.

Most insurance carries an excess of some description, Motor Trade Public Liability is no different so expect to be paying between £250 and £500, this is called a Third Party property Damage Excess.

Discussed separately is Defective Workmanship Insurance as well as Sales Indemnity, standard covers under motor trade liability designed to cover businesses from the threat that they will be sued from a member of the public. It will cover your business in the event that it causes injury or death to a third party, it will also cover you in the event that you damage a third parties property.

You may also be interested in: Employers Liability Insurance