I finally went from casually repairing automobiles for some side money to having my own business on a premises I lease in the village where I live. I had to learn about insurance for the motortrade in the uk before I opened for business. I was awake late into one evening as I was planning out what to do the next day in preparation for the grand opening of my motor vehicle repair facility when I started thinking about what might go wrong.
I was imagining a garage filled with vehicles owned by my customers. I was thinking of the variety of automobiles that might be inside the garage and outside waiting to be repaired in the lot. Adding up the average cost of vehicles today, the total of how much money it would cost to replace vehicles lost due to some liability on my part frightened me. I was thinking about theft, fire, vandalism and all kinds of things that could go wrong. What if one of my newly hired repair technicians made a mistake in repairing a vehicle? That would come back on me as the owner. Yes, I certainly needed insurance for the motortrade in the UK.
One thing I learned about insurance early on is that many people either buy too much coverage, or they do not buy enough. The ones that buy too much get a policy that covers every detail for the maximum amount of money. Then they cannot afford to sustain it because the monthly premiums are too high. Others get the bare minimum motortrade insurance in the UK and end up not being able to satisfy a claim due to being under insured.
You have to find the balance appropriate to your business. This takes considering the budget for the policy and the real risks. You can’t imagine end of the world scenarios with insurance. Just imagine what is likely to happen, and get a good policy to cover those things.