Wrongful Conversion

Provides cover if you purchase a vehicle from someone who is not the true owner and the true owner subsequently makes a claim upon you for return of the vehicle or its cash value. Conversely, if you sell a vehicle and the purchaser finds that he does not have a valid title to the vehicle; cover is provided should he claim against you as the motor trader for its value.

Cover is subject to vehicles being cleared via approved agencies and usually excludes the first 20% of each and every claim.

Warranties and Conditions Precedent to Liability

Your policies may contain Warranties and certain Conditions which determine whether cover would apply in the event of a claim.

Where a Warranty is included, any failure to comply fully will allow your insurers to repudiate any claim, irrespective of whether the incident was connected with the breach of compliance. For example, if you were in breach of a No Smoking Warranty and suffered a Storm Damage loss, then your insurers could repudiate the loss, despite the fact that the breach has had no effect on the claim.

If your policy contains a Condition precedent to Liability then insurers may only decline to pay a claim directly linked to your failure to comply with the Condition. For example, if the policy contains a Condition that a flat roof is to be inspected for defects on an annual basis and a Storm Damage loss occurred when the roof had not been checked then the claim could be declined.

Please contact us if there is anything unclear about the scope of your cover or your policy terms.

VAT Status (impact on Sums Insured)

If you are non-registered, exempt or partially exempt you should ensure that all sums insured are adjusted to include the non-recoverable VAT element.

Theft

Theft provides cover for theft or attempted theft involving entry to or exit from the premises by forcible and violent means or involving actual or threatened assault or violence.

Stock

Claims are settled on a cost only basis and your sum insured should reflect this value. You should also include separate amounts for any target stock items that you may have, such as cigarettes and tobacco, wines and spirits, radio, TV and other electrical items, computer equipment and mobile phones.

Road Risks

Provides cover for any vehicle owned by you or in your custody or control in connection with your business. Cover also applies for vehicles away from your business premises within defined territorial limits and whilst such vehicles are temporarily in the custody or control of your sub-contractors. Cover is provided whilst the vehicle is being used in connection with your motor trade business and for social, domestic and pleasure purposes by principals, partners, directors, their spouses and employees.

The level of cover chosen can vary and a brief summary of the cover provided by each option is as follows:

Third Party Only – Cover in accordance with the requirements of the Road Traffic Acts giving unlimited legal liability cover for death or injury to any third party arising out of the use of the vehicle.

Third Party, Fire and Theft – In addition to Third Party cover as defined above, cover is also provided for loss of or damage to the vehicle caused by fire or theft only. In the event of a claim, your insurers will repair the vehicle, provide a replacement vehicle or reimburse the market value of the vehicle.

Comprehensive – In addition to Third Party cover, cover is provided for loss of or damage to the vehicle caused by fire, theft or following an accident, irrespective of who is at fault for the accident, and malicious damage. In the event of a claim, your insurers will repair the damaged vehicle, provide a replacement vehicle or reimburse the market value of the vehicle.
Cover can be extended to include social, domestic and pleasure use by either named persons or unnamed relatives and friends of partners or directors.

Public Liability

Public Liability provides protection against your legal liability for injury to the public or for loss of or damage to property not owned by you or in your custody or control. Cover usually extends to include:

Obstruction, trespass, nuisance, interference, wrongful arrest and eviction
Contingent motor third party liability arising out of the use of vehicles not owned by you within the UK
Employees’ and visitors’ personal belongings
Personal liability of employees and directors whilst they are overseas on your business
Liability for loss of or damage to premises hired, leased or rented to you for the purposes of your business
Legal costs and expenses in defending prosecutions under all relevant health and safety legislation
Associated court attendance costs
The limit of indemnity provided relates to any one occurrence or series of occurrences arising out of one event.

Premiums are calculated on estimated annual wages and/or turnover, and then adjusted at the end of the policy period based on actual declared figures. This adjustment could result in an additional or return premium.

Property Owners Liability

This insurance covers your legal liability for injury to the public or loss of or damage to property not owned by you or in your custody or control arising out of your ownership of the buildings &/or land insured.

Cover automatically includes:

Obstruction, trespass, nuisance, interference, wrongful arrest or eviction
The Defective Premises Act
Legal costs & expenses in defending prosecutions under all relevant Health & Safety legislation
Associated court attendance costs
Employees’ & visitors’ personal belongings
Indemnity to managing agents
The limit of indemnity provided relates to any one occurrence or series of occurrences arising out of one event.

Professional Indemnity Insurance

Provides cover up to the limit of indemnity against any claim (including claimant’s costs and expenses) in respect of civil liability arising out of your business due to:

Breach of professional duty arising out of negligence, whether by act, error or omission
Unintentional infringement of intellectual property rights
Breach of confidence
Libel and slander
Fraud and dishonesty of business partners, directors, members and employees
Cover extends to include defence costs, court attendance compensation, criminal prosecution defence costs, mitigation costs and accidental damage to documents.

Products Liability

Products Liability covers the goods you manufacture, supply, sell, repair, service, maintain or test, which through your negligence causes injury to the public or damage to property not owned by you or in your custody or control.

Cover automatically includes solicitors’ fees, all costs and litigation expenses, damages awarded and claimant’s costs for which you would be legally liable. The limit of indemnity provided relates to any one period of insurance.

Premiums are calculated on estimated annual turnover, and then adjusted at the end of the policy period based on actual declared figures. This adjustment could result in an additional or return premium.