In a recent study carried out by The Motor Trade Club, among people working within the motor trade, it was revealed that almost a third (30%) of respondents do not have Motor Trade insurance, despite it being a legal requirement.
What’s more, just over half of the respondents (51%) admitted to having not taken out Motor Trade Liability insurance and of the traders who have employees, 4 out of 10 admitted to not having Employers’ Liability cover, again, despite it being a legal requirement.
By law, traders must have Motor Trade insurance, and Employers’ Liability insurance (if they have employees), yet so many have, for whatever reason, decided against taking out the cover.
Businesses without the necessary insurance really are exposing themselves to untold costs and expenses, not to mention legal action that could be taken against them as a result of being uninsured.
James Wapples, Director of the Motor Trade Club, comments on the findings, “We were surprised to learn so many businesses are without the correct insurance. The HMRC now work with insurance companies to identify who does and doesn’t have the correct insurance in place. With fines of up to £2,500 per day, can traders really afford to not have the right cover?”
Wapples continues, “Our findings have shown that too many businesses may be left exposed through lack of insurance. Perhaps the industry should be pushing harder on this and educating traders on their legal obligations to have the right cover in place.”
Any traders wishing to source insurance should visit themotortradeclub.com.
