Top Tips for Businesses Looking to Purchase Automotive Cover
Gallagher Automotive Team has been protecting a full spectrum of motor trade businesses across the country – from small family firms and independents up to the largest franchisees - for over 30 years. Their nationwide team of specialist brokers’ places over £33 million of premiums annually with a wide range of specialist motor trade underwriters. If your business is looking to arrange automotive cover, the Automotive team recommend the following:
1. Hire a broker
Deal with brokers that know the industry as they are more likely to understand the issues affecting your business and the level of cover you need. They can then negotiate with providers to get you a competitive deal, but one that still leaves your business protected.
2. Start your renewal process in good time
In order for an insurance broker to do the best job possible it’s important to give them adequate time to analyse your risk, market your risk to the insurers, compare the various quotes received and report back with an appropriate available option.
3. Don’t focus solely on the premium
The most important thing is to safeguard your business and make sure you are adequately covered. We have seen garages remove key coverages in order to reduce premium, which has left them short following a claim which would have been covered had they not removed it from the policy to reduce the premium.
4. Protect you and your business:
A standard Motor Trade policy won’t cover everything, which is why you need a reputable policy with a good insurer. Their policy should include Road Risks, Material Damage/Business Interruption and Public/Employers Liability as a starter for ten, but there are many other areas which may pose a risk for you and your business, for example Management Liability, Cyber and Crime. You should use a broker that goes beyond covering your basic risks and advises you on other areas and potential gaps in cover.
5. Read the Small Print:
It is important to get the right cover in place, but has your broker made you aware of the exclusions, subjectivities, warranties and policy excesses applicable? These should all be confirmed to you prior to taking out the policy. Ask yourself: do you know what your policy excess is for each section? Do you have a co-insurance clause on your policy? If you are not aware of these then in the event of a claim you could receive a settlement much lower than you were expecting.
6. The Condition of Average:
Not everyone is aware that insurance policies may include an “average” clause. This clause means that if you are underinsured then your insurance company could reduce any claim in proportion with the gap. For example if you had £100,000 of Machinery & Plant cover, but should have had £250,000 then after the application of “average” a £20,000 claim could be reduced to £8,000.
7. Don’t use too many brokers:
You may believe that by using multiple brokers you are certain to come up with the best premium, however this can have the opposite effect. There are a limited amount of reputable motor trade insurers, and some of them may simply “no quote” if they see a quote request for the same business from more than two brokers, which means you’ll receive no quote instead of a potentially great quote. We would suggest you consider using your holding broker and no more than one other to obtain alternative quotes, any more than that and you could simply block the market.
Gallagher are pleased to provide MOT Loss of Licence cover as standard for any RMI member with an authorised MOT centre taking out an Allianz insurance package, available to RMI members when you purchase an Allianz Motor Trade Policy from Gallagher via the RMI. .
Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909. www.ajg.com/uk.