As any operator of a commercial vehicle will know, it is vital that you get the right insurance in place for your business. But with such variety of cover available it can be difficult to narrow down exactly what is right for your business.
We look at some of the key covers that you should be aware of and also look at the benefits that working with an experienced commercial motor insurance broker can bring.
Fleet Insurance
Fleet insurance covers all of the vehicles in your fleet under one convenient policy. Whether you have a fleet of 2, 10 or 100 vehicles you should be able to access a fleet insurance policy. Fleet insurance effectively makes it possible to insure multiple vehicles under one policy. It also means you have only one renewal date and it can mean other benefits such as a better price for insuring multiple vehicles.
Many insurers will set a minimum and maximum number of vehicles that can be covered under a fleet insurance policy so always worth keeping this in mind when looking at your needs. If you work with a broker, they should be able to direct you to an insurer who can cover the number of vehicles in your fleet.
You can typically cover a range of different vehicles under a fleet insurance policy. From HGV’s in a haulage fleet through to a mixed fleet of cars and vans. And it should be possible to cover a range of business uses from haulage to couriers.
Whilst all policies vary, fleet insurance will typically provide cover for
- Fire and theft
- Accidental damage to vehicles in your fleet
- Tool’s cover
- Goods in Transit cover
- Cover for expenses incurred due to a breakdown
Owner Operator Insurance
If you are a self-employed lorry driver or an owner operator, then you will be in charge of setting up your insurance and ensuring that you have the right cover in place for the vehicle that you drive and the work that you carry out. Rather than cover being provided by your employer.
An owner operator is someone that both owns and operates their HGV business. So, you’ll need insurance which is specific to the risks of an HGV or truck.
Owner Operator insurance can provide cover for private operators including:
- Fire and theft damage for your lorry
- Personal accident and illness cover
- The contents of HGVs or damage to goods in transit
- Expenses incurred if your truck breaks down
- Costs incurred by the delayed delivery of goods
Goods In Transit Insurance
Goods in Transit insurance covers your liability for goods or products that are lost, damaged (either maliciously or accidentally) or stolen while they are being transported or stored immediately beforehand. The cover doesn’t extend to the items when they are being stored in a warehouse or similar, only when in transit.
Goods in Transit insurance can cover damage or loss caused by
- Loading or unloading
- Weather
- Piracy
- Infestation
- Theft
If your business is involved in moving goods from one location to another then you will want to take out Goods in Transit insurance. For example, couriers, removal companies, hauliers or those working in the haulage industry.
Goods in Transit insurance is designed to cover just the contents being transported, not the vehicle. So, in addition to this type of cover you will require a policy that covers your vehicles such as fleet insurance or owner operator insurance.
As a result of General Average, if you don’t have Goods in Transit insurance, you could find yourself liable for the damage or loss of goods that don’t belong to you.
Freight Insurance
Freight insurance, also known as cargo insurance, covers your liability for cargo that is either physically lost or damaged while in transit and also whilst being stored pending transit.
It can provide cover for
- Transit
- Import and export
- Storage during transit
You’ll need to consider freight insurance if you are importers, exporters, goods shippers or goods receivers.
GAP Insurance Cover
GAP stands for Guaranteed Asset Protection. GAP insurance can cover the difference between the amount you paid for a vehicle, and the amount your comprehensive insurance policy pays out.
It can be a particularly important addition to your commercial motor insurance policy if you lease your vehicle through a contract hire agreement for example.
Insurers typically pay out the current value of a vehicle in the event of a total loss claim. And in some cases, this may be significantly lower than is required to settle the amount owed to a leasing company. It is this shortfall that GAP insurance can provide cover for and limit your exposure to early termination charges.
We take a full look at GAP insurance and it’s benefits in one of our recent blogs so do have a read for more information on this cover.
Benefits of working with an insurance broker when arranging commercial motor insurance
There are many complexities in the commercial motor insurance market. So, working with an expert who deals with these on a daily basis and understands the terminology, technicalities and has pre-existing relationships with a wide range of insurers ultimately makes sense.
An insurance broker works on behalf of their client so your interests are at the focus during discussions and negotiations. Not the interests of an insurer. Brokers such as Anthony Jones understand the insurance market – we know the variety of covers available and which your business should consider, have a good awareness of factors impacting the market and develop a full understanding of our client’s businesses and needs. This makes us well positioned to get the right cover for your business at the right costs.
It’s also important to be aware that the commercial motor insurance market continues to become increasingly selective over who they want to insure. There is reducing capacity in the market and prices continue to increase. The need to understand a business’s approach to risk management is becoming more of a focus and we are seeing insurers demand increasing evidence from businesses about their road safety risk management strategies. A good broker should be able to work with you to present your business to insurers in the best possible way.
At Anthony Jones we have partnerships with DAC Beachcroft and Cardinus. So in addition to our understanding of the commercial motor insurance market and existing relationships with a range of insurers across the market, through these partnerships we are also able to further support our clients in understanding key risk management issues and to put the tools in place to manage these risks. Do get in touch with us if you want to discuss anything related to commercial motor insurance on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
