What does haulage insurance cover?
The precise details of any type of insurance are likely to vary from one insurer to another and to reflect your particular needs and requirements. This is equally true of haulage insurance cover, where you are likely to have a particular concern for ensuring that the policy you arrange accurately reflects the protection your business requires.
Insurance is likely to represent a significant overhead for your business – and is included in the Freight Transport Association’s (FTA) annual Managers’ Guide to Distribution Costs – so it is important to make an informed and cost-effective choice.
Matching your business needs to the various insurance products available, at a competitive price that represents good value for money, may call for the professional judgment of a specialist insurance provider – such as those of us here at Isis Insurance.
Despite the wide range of haulage insurance options, we are able to offer, there are certain core elements and considerations likely to be involved in the typical policies arranged:
- if you run a haulage operation, your most significant investment is likely to be in the vehicle or vehicles you use and need to protect against loss or damage;
- basic cover of at least third party insurance is required by law of course, and whilst that is designed to meet the claims of anyone injured or having their property damaged in an accident for which you or one of your drivers is responsible, it offers no compensation for loss or damage to your vehicle;
- for the typical haulage operation, therefore, comprehensive cover is required;
- you may have more than one HGV – or indeed a mixture of vehicles – to insure and in that case the attractive discounts offered for fleet insurance packages may represent a bonus;
- your legal responsibility for arranging a minimum of third party cover for the vehicle may be well known – less obvious, however, may be the importance of protecting yourself and your business from claims made by visitors to your premises, customers or members of the public who may be injured or have their property damaged in connection with your business operations (during loading and unloading, for example);
- public liability insurance, therefore, may also be an important element of your cover in protecting against potentially very substantial claims of a million pounds or more;
- it is important to distinguish your public liability from that which you have towards your employees – whether drivers or those working in your back office;
- if you employ others, you are almost certain to have a legal responsibility for holding a minimum of £5 million indemnity against claims from any who may be injured, contract an illness or otherwise suffer loss as a result of their employment with you;
Goods in transit
- insurance for goods in transit, especially when you are carrying those owned by someone else, is a notoriously complicated subject;
- you might want to cut through any potential confusion or misunderstanding and, for the avoidance of any doubt, ensure that your haulage insurance also includes goods in transit insurance;
- your business is unable to make any money if the wheels of your vehicles are no longer turning;
- a common optional extra for haulage insurance, therefore, is breakdown cover, including roadside assistance in getting your lorry back on the road again as quickly as possible.
Haulage insurance may cover a multitude of risks and perils, some or all of which may be faced by your business. Choosing carefully between those you might need and those you may do without may help manage the costs of this essential cover.