Traders Insurance….. Defective Workmanship Insurance – Do I really need it?


Traders insurance and add on’s ………… are they worth it?

Defective Workmanship Insurance is an additional extra to your Traders Insurance.  If included Insurance brokers will refer to this as a Combined Motor Trade policy.  In short, to add this to your policy you will be covered for any compensation as a result of accidental bodily injury; accidental loss or damage to property as a result of a defect in repairs completed by the policy holders business.  The cover is solely for the resultant damage which can exceed thousands of pounds, and not the part that was fitted.  The part itself, if faulty, is covered by the product liability insurance which is within a traders insurance policy.

If you are a trader who deals with workmanship such as repairs and servicing this type of cover would be beneficial and should be an option you consider when choosing the right type of motor trade policy.  Amounts of cover can vary but a minimum amount to consider is £2m. Some Underwriters have a minimum of £5m cover as standard and increase the premium if you require a higher amount.

Getting more advice on traders insurance

For those running a repairs and servicing business defective workmanship insurance is a necessary evil and without it your business would be exposed to potentially expensive claims should anything go wrong and should be included on your traders insurance.  It can be complex to understand in terms of what is and what is not covered but any good Account Handler can guide you through this area with ease making suggestions to ensure you are adequately covered.

Finding the best traders insurance in the market.

It is worth discussing your requirements with several brokers in the market as sometimes they can all provide differing rates and opinions.  Also speak to your friends in the business and see where they have placed there insurance business and see what features they had.  Once you have numerous quotes together then you can assess which is best for your business.