Commercial Combined Insurance

Motor Trade Sales and Service Indemnity Insurance

Compare Sales and Service Indemnity Insurance with Buckingham Insurance

If you own or manage a business in the motor trade, you will probably be familiar with the need for Public and Employers Liability Insurance. These protect the business from costs where a member of the public or staff claim to have suffered injury or loss as a result of your business activity. But you may not be aware of sales and service indemnity insurance – which are specifically designed covers for motor traders.

Motor Traders Sales and Service Indemnity Insurance
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What protection do sales and service indemnity insurance covers offer?

Effectively, sales and service indemnity insurance are extensions of Public Liability Insurance. Sales indemnity insurance protects you where a vehicle you sell has a problem that results in damage or loss. For example, imagine that you sell a vehicle and complete your standard pre-sale check over, but on the drive home, a wheel works loose and comes away, causing significant damage to the vehicle. The customer would most likely make a claim against you, saying that it was unfit to drive. Sales indemnity insurance would protect you from costs of repair or replacing the vehicle, as well as any legal expenses that you may incur.

Service indemnity cover works in a similar way. It provides cover for the item being worked on, so that if you damage something on a customers’ vehicle while you are repairing it, the replacement costs can be covered.

Examples of Service Indemnity Insurance claims

Service indemnity insurance can prove very worthwhile. An example we came across with a client was where they had undertaken some maintenance work on a vehicle which involved the replacement of a hose. The hose had been fitted incorrectly causing it to shear, which in turn caused damage to the engine for which the client was found to be legally responsible resulting in a total claim cost of £9135. Had cover not been in place, it would have been a costly days’ business.

Another client fitted a towbar and electrics to a car. But there was an issue with the electrical work which caused the car to fail for which the policyholder was found to be legally responsible. This happened whilst the third party was on holiday and third party incurred the costs of hiring another car with a towbar to continue their holiday, the cost of recovering his car to his home address and the repairs being undertaken totalling some £2340.

How much does service indemnity insurance cost?

Sales and service indemnity insurance can be included as part of a motor trade combined insurance policy. Prices vary depending on the indemnity limits (the maximum amount that the policy will pay out) but, in our experience as a broker, can prove to be cost effective when faced with the types of claims outlined above. Subject to Terms and Conditions, we can offer PL and Service / Sales Indemnity from £185 for a £2m indemnity limit for a one man band. It’s a good idea to speak with one of our specialist motor trade insurance advisors, who will be able to recommend appropriate cover, meaning you get the protection that you need in place, without paying more than you need to.

Why compare sales and service indemnity insurance with Buckingham Insurance Brokers?

Established over 40 years ago, Buckingham Insurance has offered insurance advice and arranged cover for countless motor trade businesses across the region. With access to policies from a range of providers, our team of specialist brokers take time to understand our clients business fully before recommending cover. Why not pick up the phone now – we could have you on cover today!

If you have a specific Business Insurance enquiry and want efficient, friendly advice and quotations, simply call us on 01246 575625 or use our enquiry form here.

Call us today on 01246 575 625
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