PIB INSURANCE BROKERS

Motorcycle Dealer Trade Insurance

Our range of additional benefits

Here are some of the ways in which we can help you provide an outstanding level of service.

• Transit: Up to four motorcycles in transit in any other vehicle operated by you

• Property damage: Broad spectrum of risk cover including subsidence.

• Seasonal increase, providing 30% uplift of stock for four months of your choice

• Motor vehicles: New for old replacement on cars and vans if total loss or theft with no recovery occurs to a car or van owned by the insured if the vehicle is less than 12 months old from new

• Payment: Interest-free instalments available, subject to a satisfactory credit check

Is

your dealership insured correctly?

One of the biggest insurance issues facing motorcycle dealers is the threat of underinsurance. This is not a new issue as studies have regularly found a large proportion of buildings are not insured for their correct value. However, with the recent level of inflation, particularly to building materials, this issue deserves close attention by any business that owns its own premises.

While sums insured are usually automatically indexlinked to inflation, this may not be enough to provide sufficient cover in the current climate, as it still may not factor in the total cost of completing a significant rebuild project. If your buildings insurance doesn’t cover the total reinstatement cost, and you need to make a claim, the pay-out may be insufficient – however large or small your claim amount. This is because the percentage you are underinsured by can be deducted from your pay-out, under the ‘average clause’ in the policy.

An example of being underinsured

Your dealership has a current sum insured of £1.2m. A fire occurs which damages most, but not all, of the property. Insurers appoint loss adjusters who calculate the true rebuilding cost of the property to be £1.5m (in other words it was underinsured by 20%). The cost of the loss is calculated to be £500,000 but once the insurer applies the average clause the claim payment is reduced by the amount of underinsurance (20%) leaving the policyholder £100,000 short of the full repair costs.

How can you avoid being underinsured?

Arrange a professional valuation of your property. This will ensure that your rebuild sum insured is accurate. We have partnerships with several RICS accredited specialists to offer either desktop based or on-site surveys of your premises to provide a suitable valuation and to avoid underinsurance.

Engage with us early to discuss your cover requirements and any additional risks to ensure the terms sourced adequately meet your evolving business needs. If you take on more bikes, update us as soon as you can, and provide as close to the true value of your assets as you are able to.

Consider risk management support. Pro-active risk management is a key factor in insurers’ considerations. We provide tailored advice and support to help you reduce insurance costs and mitigate against any future risk. n

Get In Touch

For a free review of your insurance arrangements, contact the Bike Dealer team around three or four months before your renewal. This will allow time to check that your current cover is possible and for us to get you the best possible terms. At PIB Insurance Brokers, we can help you understand the risks involved with underinsurance and how to make sure your motorcycle business is adequately insured.