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By James Carr
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Motor traders face a wide range of risks, from accidental damage and theft to claims involving customers or staff. Having the right insurance in place is critical - not only for legal compliance but also for safeguarding your business and maintaining customer trust. With extensive experience in motor trade insurance, Arachas works with dealerships across Ireland, providing tailored advice and insurance solutions to help businesses protect themselves against these risks.
This article outlines the core insurance areas dealerships should prioritise, explains how policies can be tailored to specific business needs, and provides practical guidance to help motor traders make informed insurance decisions.
Core Insurance Areas
- Road Risk Insurance
Essential for any dealership, this covers vehicles while they are being used for business purposes. Depending on your policy, it may cover third-party damage, fire and theft, or provide comprehensive protection for vehicles in your care. - Employers’ Liability
Mandatory if you employ staff, this cover protects your business against workplace injuries or illnesses. It ensures compliance with Irish health and safety regulations and helps mitigate potential legal and financial consequences. - Public & Product Liability
Protects your business against claims made by third parties for injury or property damage. This is critical for dealerships dealing directly with customers or handling vehicles in their care. - Premises & Stock Cover
Covers your buildings, tools, equipment, and vehicles stored on-site against risks such as fire, theft, or natural disasters. It ensures that both operational assets and stock are protected. - Goods in Transit Cover
Optional but highly recommended for businesses moving vehicles or stock between locations, this cover protects your assets against damage or theft during transit.
Emerging Risks and Trends in the Motor Trade
The motor trade sector is evolving and with it, the risks that dealerships face. Staying aware of these changes is essential to ensure your insurance remains adequate and relevant. Key trends include:
- Larger Dealerships and Fleet Operations - More vehicles, multiple sites, and higher stock values increase exposure and the potential financial impact of claims.
- High-Value and Specialist Vehicles - Classic, luxury, and imported models often require tailored coverage to protect against theft, damage, or restoration costs.
- Cyber and Digital Operations - Online sales platforms, digital customer databases, and electronic payment systems create new risks. Cyber insurance is increasingly relevant, particularly for larger or tech-enabled dealerships.
- Regulatory Changes - Updates to health and safety, environmental, and vehicle standards can affect liability exposure, making regular policy reviews essential.
- Supply Chain and Logistics Challenges - Vehicle transport between locations and deliveries to customers increase reliance on goods in transit cover.
- Claims Inflation and Repair Costs - Rising costs for vehicle repairs, especially for electric or hybrid models, are affecting premiums and coverage requirements.
- Electric and Hybrid Vehicles - EVs introduce new risks, including battery damage, specialised repair costs, and charging infrastructure liability, which may require bespoke insurance solutions.
By recognising these trends, dealerships can better understand where standard cover may fall short and where additional or tailored policies may be needed.
Standard Policies and Customisation of Cover
Most motor trade insurance policies are standard “off-the-shelf” products designed to meet the common needs of dealerships. However, customisation is a growing trend, allowing businesses to tailor policies to address many of the specific risks highlighted above, including:
- Fleets of multiple vehicles
- High-value or classic vehicles
- Specialist trades or unusual operations
- Extended liability or coverage limits
- Cyber insurance, increasingly adopted by larger or digitally enabled dealerships
From experience, dealerships that take advantage of customisation are often better protected against unexpected losses and can reduce the financial impact of claims.
Claims Insight
Claims can arise in a variety of ways, and having the right cover in place is critical:
- Theft or accidental damage – vehicles in your care or on the premises
- Employee incidents – injuries sustained while working on vehicles or moving stock
- Third-party claims – accidental damage to customer vehicles or property
Even well-managed dealerships can face these situations, demonstrating the importance of comprehensive motor trade cover.
Conclusion
Choosing the right insurance is about more than compliance - it’s about protecting your dealership, staff, and customers from financial and operational risks. By understanding the core areas of cover, recognising the benefits of customisation, and considering emerging risks such as cyber threats, fleet exposure, and high-value stock, motor traders can ensure their business is fully safeguarded.
For practical advice and support with motor trade insurance, contact Arachas. With extensive experience across a range of dealerships, we can help you review your policies, identify gaps and ensure your business has the right cover in place to manage risk effectively.
Arachas Corporate Brokers Limited t/a Arachas is regulated by the Central Bank of Ireland. Company registration number: 379157