So many people make the mistake of believing they don’t need part time traders insurance as they are only selling or fixing vehicles in their spare time.
If you are selling or repairing vehicles and you are making money from it, then you need to consider this cover. Only those who do repairs and sales for family and friends from the goodness of your heart and never make any money don’t need this type of cover.
What You Can Expect to Gain
When buying or selling vehicles or working on vehicles and repairing them, you are facing risks each time you sit in the vehicle or start pulling it apart. These are risks which could be protected if you had the right cover in place.
Don’t be fooled in believing your own personal auto cover will protect you when you need to drive a customer vehicle to ensure the repairs have been carried out accurately. This is not the case and should you be involved in an accident whether it’s your fault or not, you will not be covered. As you are only working in your spare time, this is a huge financial burden to bear.
Another thing that many people don’t take into consideration when working in their spare time is that they need public liability cover. This can be one of the biggest expenses you ever face if someone injures themselves when visiting your property. Even if you work from your home garage or garden, a customer tripping over a step or being injured can set you back thousands. Public liability claims against you are claims you are legally responsible for and can leave you in financial ruin.
What You Need to Know
If you are considering applying for this type of cover you need to be able to prove that you are only working in your spare time, this can be done by proving that you have another full time position where you are paid through the PAYE system.
You will also need to keep books to show you are working to make a profit. As mentioned before if you are only working to help out friends and family and you don’t take any money for it then you don’t need to get this cover.
Another interesting thing you may not have realised is that employer’s liability cover is a legal requirement in the UK the minute you hire someone to help you, except if it’s a family member. So if you have hired a friend to help you get your cars completed and you are paying them, you will need this cover to protect you should they be injured while at work.
The last advantage of part time traders insurance is that you can add your own personal vehicles to the policy, this means you can do away with your private auto cover and it can assist you in reducing your overall costs in the long term.