Motor insurance warning issued for tradesmen
Online motor insurance broker InsureYourMotor.com has warned that over 56 per cent of tradesmen could go out of business if they had a serous road traffic accident. Whilst road traffic accidents ruin lives, many accidents could ruin businesses. The unprecedented increase in the number of ‘white van men’ on the UK’s roads is a testimony to the number of new businesses in this sector. InsureYourMotor.com recently carried out a survey of its customers and found 56 per cent were incorrectly insured for the contents of their vans. The ‘white van’ for many businesses plays a crucial role. It’s not just a mode of transport or a way of getting from A to B. To many businesses their vehicle is a vital support mechanism without which the business could not survive. Many tradesmen carry their complete business livelihood with them, the tools of their trade or stock, without which they could not earn their living. If the vehicle was involved in a serious road traffic accident and the contents – be it stock, tools or goods in transit – were damaged or destroyed they would be covered under the motor policy. However if the van or its contents were stolen the motor policy would not cover the return of the goods. As most drivers rely on the contents of their vehicles to earn their livings, this could have catastrophic effects for the small business. David Harlow, Managing Director of InsureYourMotor.com, explained, ‘Many white van drivers thought that the return of the stolen contents would be covered under the general business policy, thus providing the necessary cover. We urge all business that fall into the white van category to speak to their broker before it becomes too late’. The theft of goods in transit is also an issue that insurance intermediary, Allen and Allen, has picked up on. The company claims that tradesmen use their vans to earn their living should be fully aware that the theft of goods in transit is not normally covered by the vehicle insurance policy. To be sure that they are covered in such an event and against any subsequent claims or loss that may follow from customers, the company urges tradesmen to take out a separate policy that covers theft of goods in transit or risk damage and / or disruption to their business. Whilst the theft of parts or materials needed to perform a task may sometimes be little more than a nuisance and easily replaced, there could be occasions when their loss causes a substantial delay, perhaps even leading to workers standing idle or the loss of work altogether. In such instances and given the publics growing awareness of their power to litigate, it is entirely possible that claims for compensation could be made for any loss and any associated inconvenience resulting from theft of goods whilst they were in a tradesman’s possession. Tony Allen, Chief Executive of Allen and Allen, commented, ‘For the smaller trader relying in the goodwill and referral of their customers for continued employment, this could do irreparable harm to both their reputation and business. This is an unnecessary risk to take when there is a convenient and cost effective alternative.’Date - 15/05/2003
