First and foremost, the exact features of a policy will vary depending on the company you are dealing with and the business in question but regardless of the variations, there are still some common factors that can be found in them all.
Parts Only Cover
This is also referred to as third party basic cover. It mostly depends on the kind of business you are dealing with but a part’s only cover protects against damage to a vehicle in forms of damaged parts. So it protects against aging of components, replacements, repair and so on but meeting with accidents, fire and such dangers do not fall under this kind of policy. Naturally, these policies cost the least.
Road Risks Policy
A road risks insurance cover basically allows you to not just use your vehicles but those of others too that are in your possession. However, it only applies when you use vehicles for the purpose of carrying out your job. Let’s take a painter van for example. The painter can claim for damages only if the van meets an accident while on the job. However, if he were returning from the mall in the van and met with an accident, this cover is not applicable.
In its raw form, you can either opt for Third Party Only or TPFT also called Third Party, Fire and Theft. The latter is naturally a more comprehensive cover and naturally costs a lot more. By law though in the UK, drivers need to carry a TPO if they intend to do business in or using their vehicles.
When you take a TPFT though, you can expect protection for more than the vehicle in accidents and fires. You can get covered for medical expenses, accidental damage, loss or vehicle and personal effects plus a lot more.
Traders Combined Policy
If you work from a business premises, then you need this kind of cover. These are considered to be specialised motor trade policies and they encompass a lot more than the things in the last two policies. For instance, it can have public liability insurance, employer’s liability, premises cover, personal accident and sickness cover, trailer cover, goods in transit cover, legal insurance and a lot more things. Just one word of caution – if you plan on taking this kind of policy it is best to customize it completely instead of going for a pre-planned unit.