Motor trade insurance can be split into road risks (when you need to move vehicles) and liability insurance. It may prove economical to buy a combined policy that covers both types of risk.

Although the legal requirement is only for third party insurance for road risks, a comprehensive policy can offer much more. If a member of staff of a car valeting company is driving a customer's car for delivery, and has an accident, the damage wouldn't be covered by a third party policy; under a comprehensive policy, the trader wouldn't be too much out of pocket.

Some things are more expensive to insure than others. Drivers under 25 may find it hard to get motor trade insurance; dealers specialising in sports and high performance cars may also find road risks insurance is costly. You should also note that policies make a number of standard exclusions; they often won't insure vehicles owned by your employees, or vehicles over 7.5 tonnes (unless specific cover has been obtained).

If you deal with customers in Europe, it's nice to know that many policies will cover you for driving abroad, though the policy may specify a maximum length of trip or number of trips per year.