Why is Freight Transport Vehicle Insurance essential for your business?
Your vehicles are an essential part of keeping your business running. So if your truck was suddenly out of action due to an accident or other incident, the dent to your business and revenue would be a big shock. Having appropriate business vehicle insurance to help protect your vehicles can help prevent you from falling into this pitfall and may make a big difference in how quickly your business is able to get back and running if you do experience an accident.
Types of Freight Transport Vehicle Insurance
Understanding the various covers available under a Freight Vehicle Insurance policy can help ensure you choose a cover that is appropriate with your business’s needs. Below, we’ll go into detail about the cover sections available under the Freight Transport Insurance arranged through Aon.
Damage to third party property
Generally, the most basic form of cover available, this provides cover (of up to $50 million) for damage your vehicle is responsible for if the driver in an at-fault accident and the driver is not carrying hazardous/dangerous goods. If damage is caused to third party property during loading and unloading merchandise, and your business is held liable for this damage, then this section may help cover the costs to repair the resulting damage. Under this section of cover, clean up costs and removal of debris may also be covered for up to a certain amount.Cover for your truck
You know how much you paid for your vehicle, so you can probably guess how much repairs would cost if your vehicle suffered damage in a collision. If your vehicle was involved in an accident, having to come up with the kind of cash needed for repairs would undoubtedly hurt you financially. Under the Commercial Motor section of a freight insurance policy, the cost to repair or replace your vehicle following an accident may be covered. Several other cover features are included under this section, such as cover for your gates, tarps and chains, trauma counselling, your family’s travel expenses up to certain limits, as well as emergency repairs of up to $7,500.Cover for goods your vehicle is carrying
If you’re a transport operator, and the goods your vehicle carries are damaged in transit, this could also lead to significant costs for your business as you’d likely be held liable for the damage by your clients. Freight Vehicle Insurance also gives you the option to take out cover for eligible cargo your vehicle carries. Under the policy arranged through Aon, you may be able to choose from several cover levels, such as accidental damage, insured events and liability cover.Dangerous goods carrying liability and clean up
If your vehicle carries dangerous goods, liability cover for removal of debris and clean up costs are included under the Commercial Motor section for up to $2.5 million. If your business requires a higher limit, then this may also be added as an extra option.Cover for your trailer
Under Freight Vehicle Insurance arranged through Aon, an eligible trailer is automatically covered for up to $100,000. This includes cover for eligible materials held within the trailer, as well as if the trailer suffers damage due to an eligible event such a storm or fire. Additional cover for trailers may be available if your business regularly uses trailers.Public & Products Liability
Public & Products Liability may also be available as an additional cover under Freight Vehicle Insurance. This may provide cover if you or your business is held liable for personal injury or property damage to a third party as a result of your business’s activities or products you sell, supply or manufacture.The liability cover under this section is different to the liability cover under the Commercial Motor section. Liability cover included under the Commercial Motor cover section covers damage caused by your vehicle in a collision. This additional Public & Products Liability is intended to cover injury and/or property damage caused by your business more broadly. For example, if you have an office, and a member of the public slips and injures themselves while at the premises and sued you for negligence, then Public Liability Insurance may cover your legal defence fees and any compensation you might be obligated to pay. This cover may also be available under other types of insurance such as Business Insurance packs, so it’s important you check you don’t already hold this cover before selecting it.
Downtime
This is an optional cover available under Freight Vehicle Insurance, and is designed to cover a portion of your lost revenue while your vehicle is being repaired following an accident.Benefits of Freight Vehicle Insurance
Protecting your vehicles under an appropriate Freight Vehicle policy may help ensure you’re not left to shoulder the full burden of repair costs if your vehicles are involved in an accident. The additional features and optional extras available under the policy such as clean up costs, downtime cover and trailer cover can further help your business with the additional associated costs of an accident. Freight business operators should take the time to understand the various cover sections under a Freight Insurance policy and decide on which options to select based on their needs.
The small business insurance team at Aon are here to help you make an informed decision about the cover you might need for your business. Speak to a member of our team and we can help make sure you understand the various cover options and how you can make a decision on the cover options to select.