Insurer The St Paul has decided it will no longer write road risk policies on a stand-alone basis following a review of its £1m book of business.
The insurer has told brokers it will only write road risks as part of a combined package of other business-related risks such as employers' and public liability and business interruption for the motor trade.
Road risks is the cover supplied to car dealerships or accident repairers to safeguard their own or customers' cars during test drives or related work.
A St Paul spokesman said the insurer is now only prepared to take on road risks as part of a larger package of cover. The move follows a review of the £1m book of business several weeks ago. The spokesman added that this figure represents only a "small proportion" of its total motor trade account.
Mike Tyler, general manager of Tradewise underwriting agencies, says the road risks market is fast diminishing, with only his company, Norman Insurance and Tradex left.
