Motor trade businesses operate in a high-risk environment where vehicles, people, money and regulatory obligations intersect every day. Claims can arise from accidents on the road, damage to customer vehicles, allegations of faulty workmanship, or errors in compliance documents. Motor Trades Insurance Packages are designed to bring these risks together under one coordinated insurance solution.

At Rivergum Insurance Brokers, we arrange motor trades packages that reflect how your business actually operates — not just the trade description on paper.

Who Is Motor Trades Insurance For?

Motor Trades Insurance is relevant to a wide range of automotive businesses, including:

• Motor vehicle repairers and mechanics

• Smash repairers and panel beaters

• Auto electricians

• Tyre and exhaust fitters

• Vehicle service and maintenance centres

• Mobile mechanics

• Car dealerships (new and used vehicles)

• Motor vehicle wholesalers and traders

• Vehicle detailers and car wash operators

• Automotive engineers and modifiers

• Roadworthy inspection and certification providers

• Tow truck operators and recovery services

• Automotive parts and accessory installers

If your business handles, drives, repairs, modifies or certifies vehicles, motor trades insurance is essential.

Key Risk Exposures in the Motor Trade

Motor trade businesses face a combination of physical, financial and professional risks.

Driving & Road Risk

Vehicles may be driven:

• For testing and diagnostics

• Between sites or customer locations

• For delivery or collection

Accidents can occur while:

• Driving customer vehicles

• Test driving repaired vehicles

• Moving vehicles within yards or workshops

Motor trade policies must clearly define who can drive, what vehicles are covered, and how vehicles are used.

Damage to Customer Vehicles (Care, Custody & Control)

Businesses often hold customer vehicles:

• In workshops

• In storage yards

• Overnight or long-term

Risks include:

• Collision damage

• Fire or theft

• Vandalism

• Weather events

Standard business policies usually exclude this exposure unless specifically insured.

Faulty Workmanship & Professional Errors

Claims may arise from:

• Alleged faulty repairs

• Incorrect installation of parts

• Failure to identify mechanical issues

• Inadequate workmanship

While insurance does not cover the cost of redoing faulty work itself, it may respond to resulting damage or third-party loss, depending on policy terms.

Financial Loss & Certification Risk

Certain motor trades carry financial liability, including:

• Incorrect roadworthy certificates

• Compliance or safety inspection errors

• Failure to meet regulatory standards

These claims often involve pure financial loss, which may not be covered under standard liability policies unless professional indemnity is included.

Fire & Workshop Risk

Motor trade premises often contain:

• Flammable liquids

• Welding and hot works

• Heavy machinery and hoists

Fire claims can impact:

• Your premises

• Equipment and tools

• Customer vehicles

• Neighbouring properties

Theft & Security Risk

Risks include:

• Theft of vehicles

• Theft of keys

• Theft of parts and tools

• Internal theft or fraud

Security controls are a major underwriting focus.

Regulatory & Compliance Risk

Motor trade businesses are subject to:

• Licensing requirements

• Safety standards

• Consumer law obligations

• Workplace health and safety requirements

Non-compliance can result in disputes, investigations or claims.

What Does a Motor Trades Insurance Package Typically Include?

A motor trades package is usually made up of several inter-related covers:

Motor Trade Road Risk Insurance

Covers vehicles used in connection with the business, including:

• Customer vehicles

• Demonstrator vehicles

• Vehicles for sale

This cover applies while vehicles are:

• Being driven

• Tested

• Moved on public roads

Public & Products Liability

Covers third-party injury or property damage arising from business activities, including:

• Injuries on premises

• Damage caused during repairs or servicing

Care, Custody & Control

Covers damage to customer vehicles while they are in your possession or control.

Professional Indemnity (Where Required)

Important for businesses involved in:

• Roadworthy inspections

• Safety certifications

• Engineering or modification approvals

This responds to claims alleging financial loss caused by errors or omissions.

Property & Business Interruption

Covers:

• Buildings and workshops

• Tools, equipment and machinery

• Loss of income following an insured event

Employee Dishonesty / Crime

Cover for losses caused by dishonest acts of employees.

Management Liability

Relevant for incorporated businesses with:

• Directors and officers exposure

• Employment practices risk

• Statutory compliance exposures

Workers Compensation

Mandatory cover for employees, with premium rates often influenced by:

• Claims history

• Type of work performed

• Safety practices

What’s Not Automatically Covered?

Motor trade policies typically exclude or limit:

• Cost of redoing faulty workmanship

• Wear and tear

• Known defects

• Unlicensed drivers or vehicles

• Undisclosed activities or trades

Accurate disclosure is critical.

Why Motor Trades Insurance Needs Specialist Advice

Motor trade businesses rarely fit neatly into standard insurance categories. Gaps often occur where:

• Road risk and liability covers don’t align

• Certification work isn’t declared

• Driving permissions aren’t clearly defined

• Customer vehicles aren’t properly insured

Why Arrange Motor Trades Insurance Through Rivergum?

We help motor trade businesses:

• Identify all activities and risk exposures

• Structure road risk, liability and PI correctly

• Ensure cover matches licensing and certification roles

• Review security and risk controls

• Assist with claims involving vehicles and insurers

Our focus is on ensuring your insurance responds when vehicles, money and reputation are on the line.

Speak With Us

If you operate a motor trade business and want to review or arrange a motor trades insurance package, we’re here to help.

Contact Rivergum Insurance Brokers to discuss your business, vehicles and risk exposures.