The haulage industry can be a complex one, affected by many macro and micro factors. We’ve written many times in the past about a shortage of drivers in the sector, the impact that Brexit may have and the importance of health and safety.
Insurance is another factor which impacts haulage operators. With significant costs and reducing market capacity, arranging insurance has never been a more important consideration for the industry.
Here we look at factors impacting the industry in 2020, why a broker may be well placed to help haulage operators arrange their insurance and key factors you must keep in mind and be transparent about when arranging insurance.
What are the current issues facing haulage operators?
This annual report from the RHA looks at trends in the road haulage industry. You can read the full report here but we have put together an overview of some of the factors that the report highlights:
- Brexit – the uncertainty and prolonged nature of the Brexit process has caused concern across all industry, and particularly in the haulage industry who may face significant changes into 2021
- Driver shortage – a high average age of current drivers, a perception that the Apprentice Levy is insufficient for the haulage industry and a fall in workers coming from the EU are all continuing to put pressure on the industry
- 67% of participants of a survey at the RHA Autumn Conference in October 2019 highlighted skills shortage as their biggest issue
- Road congestion and continued increases in tolls making it difficult for operators to make use of solutions designed to ease congestion
- Disruption of the logistics sector by the gig economy with highly competitive pricing
- A push towards lower emissions without sufficient solutions being available for the industry
How can a broker help you get the best haulage insurance for your needs?
The RHA report highlights the fact that haulage insurance costs overall have seen increases in the last 24 months. Whilst the number of insurers and therefore capacity in the market has declined.
In the report RHA Services are quoted as predicting ‘that, on average, premiums will increase by between 4-7% during 2020.’
With such complex factors affecting the haulage industry, coupled with predicted continuation in increasing insurance costs, haulage operators getting the right insurance for their businesses is vital.
And given that insurance can be such a significant business expense you must ensure that you get it right. A broker could be well placed to help you get the best haulage insurance for your needs.
Brokers such as Anthony Jones work with a range of insurers, working not on the behalf of insurers, but on the behalf of our clients. This means brokers have your interests in mind. So when negotiating your needs will be the focus. Not that of the insurer. Brokers, like Anthony Jones, understand the market – the insurance covers available, factors impacting the market and our client’s businesses and needs. This makes us well positioned to get the right cover for your business at the right costs.
A good broker will also be able to help you with areas linked to your insurance – your risk management processes, your legal obligations, training, post-accident activities. All of which, if put in place and demonstrable to insurers, can help control your haulage insurance costs.
What factors must you consider when arranging your haulage insurance?
There are many factors that you must keep in mind when arranging your haulage insurance. Many factors can impact your haulage insurance premiums including:
What types of vehicle do you use – risk levels can vary according to the type of vehicle that you use. For example, double decker transporters can create more risk of falls from height
The types of goods that you move – if hazardous goods are moved this will need to be disclosed
The types of drivers that you employ – e.g. agency drivers, employed etc. For example, training and competency checks may be less strict for agency staff which creates risk
The risks of loading and unloading goods – this is where many injuries occur so it is important you can demonstrate that staff involved are well trained and that as a business you take health and safety very seriously
It is vital to be upfront about these with your insurer and broker to ensure that you get insurance which meets you needs and will be valid if you do need to claim.
Anthony Jones have been working with the haulage industry for over 30 years. We have a wealth of experience and strong relationships with insurers across the industry. We have a dedicated team who will take the time to get to know you and your business. We also work with DAC Beachcroft, legal experts who can assist if any of your drivers are involved in a serious incident. Get in touch with us today for more information on how we could help you and your business with your haulage insurance.
