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The Benefits of Downtime Truck Insurance

If you operate a trucking business, downtime insurance cover can be one of the most important things you’ll invest in.  

Why? Because in the case of unprecedented events that could slow down or even stop your business operations completely, the last thing you need is additional financial strain and worry.

Just look at COVID-19 and the significant impact it has had on the supply chain and manufacturing. Mechanics have been waiting for up to three weeks for parts, and as such, truckers have been unable to work while they wait for repairs.

Fortunately, downtime cover for trucks pays out your regular full income while you’re down and out of work.

What is truck downtime insurance?

Downtime truck insurance is designed to compensate for the loss of earnings as a result of being unable to operate due to damage or loss of the insured trucks.

Whether it’s general maintenance for wear and tear, unavoidable accidents, or vehicle failure, truck downtime ensures you don’t take too much of a financial blow while you’re off the road.

Most insurers can approve repairs in less than 7 days, but when mechanics have to wait for parts to be sent to Australia, it can take between 3 to 12 weeks until your vehicle is back on the road.

Why do truckers need downtime insurance?

Unfortunately, many truckers get an unpleasant surprise when they realise their existing policy isn’t as comprehensive as they had thought. 

If you’re forced to temporarily close due to no fault of your own, a loss of earnings can open up many other problems. Staff wages to pay, household bills, mouths to feed – it’s simply not worth the risk of not having downtime cover.

Truck downtime is also inevitable. Even with the best mechanic and high-quality parts, trucks in your fleet are bound to break down and will require major repairs at some point down the line.

Here are some other benefits of truck downtime cover:
  • Get paid your full wage while you’re unable to work
  • Hire a rental truck so you can continue your trucking contracts
  • Get assistance with finance payments on your truck

How much does downtime cover for truckers cost?

You can expect to pay around $300 for annual downtime cover. Do bear in mind that the cost of a premium is impacted by the value of the vehicle and the duration of the cover period, i.e. will you need downtime to cover a 30-day period or a 120-day period?

Agile's Professional Indemnity insurance protects against claims arising from an act, error or omission in the performance of professional services.

Professional Indemnity insurance is designed for professionals who provide a specialist service or advice, providing protection for financial loss and legal costs of a claim.

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

You can expect to pay around $300 for annual downtime cover. Do bear in mind that the cost of a premium is impacted by the value of the vehicle and the duration of the cover period, i.e. will you need downtime to cover a 30-day period or a 120-day period?

Different insurers offer different downtime cover, for example:

  • Replacement vehicle cover, i.e. reimbursement of hosts to hire a vehicle so that you can keep working
  • Lost income cover, i.e. covers the lost income or weekly insured amount while your truck is off the road  
Get your downtime truck insurance quote today

At Truck Insurance HQ, we work with commercial truck businesses of all shapes and sizes. We have access to the largest range of transport specialist insurance companies in Australia.

If you need advice on what type of downtime truck insurance is best for your business or you’re looking for a more cost-effective package, we’ll be more than happy to discuss your needs and find a competitive solution for you.

You can request a quote online or give our team a call on 1300 815 344

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Adam Pile, Insurance HQ Pty Ltd, ABN 33606759228, AFSL 363610

This article originally appeared on Truck Insurance HQ and has been published here with permission.

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