An often asked question is whether or not you will be covered on your Motor Trade Insurance policy to carry out your other occupation. Whether a builder, an accountant or an estate agent you “can” be covered on a trade policy.
It is a common mistake to think that you will be covered automatically for this use on your policy without paying an extra premium or requesting it from your broker. Additional business use, as it is called, means that you can travel to and from different places with regards to your primary, or secondary, occupation. This is as opposed to someone that just needs to go to and from one permanent place of business – eg an office worker or a shop assistant
If you do not have the cover on your policy but try and get away without it then you could find yourself in some trouble. For instance, if you are stopped by the police in a van carrying tools for your work then you may find that they ring up your insurance company to see if you are covered. The insurance company will then inform them you are not. This generally leads to court, a fine and a six points. In a more serious example, i.e a claim, you could find out that your policy will be voided by your non-compliance and you are left with a mess.
Additional business use can be added to your policy from as little as 5% of your total insurance premium. Eg on a thousand pound premium you could pay just fifty pounds extra. That seems to me to be extraordinary value for money when you consider that a commercial van policy on it’s own for a builder could not be bought for anywhere near that figure.
So the question is, if you require cover for your other occupation and you also need cover for your trader work, can you afford not to add Additional Business to your Motor Trade Insurance policy?