A motor trade business holds other people's vehicles, drives them, works on them and stores them. That combination sits outside ordinary commercial insurance entirely, which is why the trade has a policy shape of its own.
Road risks, and who is allowed to drive
Road risks cover lets the business and its named or trade permitted drivers use vehicles that belong to customers or are held as stock. It is the foundation of a motor trade policy and the part most tightly conditioned: age and licence restrictions on drivers, the purposes permitted, and whether cover is third party only or comprehensive. A garage whose youngest employee moves cars around the yard needs to know exactly what the driving restriction says.
Vehicles in trade, on the premises
Customers' vehicles on site and stock held for sale need cover while stationary, against fire, theft and damage, and the sum insured has to reflect the maximum value on the premises at once rather than the average. Insurers set conditions on security: gates, lighting, cameras, keys held securely and away from the vehicles, and often a maximum value per vehicle. Key security is where a large share of the losses in this trade now begin.
Liability, tools and the work itself
Public liability answers for a customer injured on the premises, employers' liability for the technicians. Faulty workmanship is a separate question: a repair that fails and causes damage is often excluded from general liability and addressed by a defective workmanship extension, which a garage doing safety critical work should have. Tools, diagnostic equipment and ramps are the property side and are expensive to replace quickly.
What combined means, and what it still excludes
Combined describes a policy carrying road risks, vehicles in trade, premises, stock, liability and business interruption in one contract, which is convenient and does not make it comprehensive. Demonstration and delivery driving, sales away from the premises, vehicle recovery, motorsport preparation and trade plates each need declaring. A business that has quietly added a service line is the one most likely to be outside its own schedule.
Questions people ask about motor trade combined insurance
What does road risks cover?
Use of vehicles belonging to customers or held as stock by the business and its permitted drivers, subject to age, licence and purpose restrictions.
Are customers' cars covered while on site?
Under the vehicles in trade section, with security conditions and often a maximum value per vehicle. The sum insured should reflect the peak value on site.
Is faulty workmanship covered?
Not usually by general liability. A defective workmanship extension is needed, particularly for safety critical repairs.