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Truck Insurance: What do I need to know?
Andrew Terzakis
Marsh Advantage In...
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Why do I need Truck Insurance?
Trucks. They’re big, they’re fast, they’re driving day and night, they’re hard to stop in a hurry and they’re carrying highly valuable goods all across the country under different conditions. By nature, trucks are high risk, with high likelihood of a potential incident and, often, high severity in the case of an incident.
You may not know it, but the law is always against the truck when an incident occurs, even when the average driver does not know how to give a truck space (when they should!!!!).
As a result truck insurance is critical to any business with just one truck or a fleet of trucks. Wouldn’t you want your truck insurance managed by a broker who has experienced the ins and outs and complexities of truck insurance, including “average driver” risks?
With truck incidents happening all the time on Australian roads, it is important to be certain that you have an appropriate policy that covers your transport business for the trucking risks that your business is likely to face. Each transport business is different and that’s where an insurance broker with experience in truck insurance is your best business ally. Not only can we make sure you have a great truck insurance policy, but when it comes time to claim you’ll want an experienced truck insurance broker in your corner to ensure your claim is paid in full.
What 3 things should I consider with Truck Insurance?
The 3 most important aspects to getting the right cover for your truck or fleet of trucks are:
- Correct sum insured on truck
- Covering the truck for the right jobs/work the truck is involved in
- Ensuring your broker has claims experience with this insurance
If you get these right, then you’re well on your way to protecting your business.
Changes in the Truck Insurance Market
Truck insurance is a changing market with insurers requiring more from truck operators in order to sell them a policy. These requirements include:
- Requesting more truck driver information
- Lower willingness to insure new entrants to the transport market
- A requirement to see “effort” by fleet operators and truck drivers
Together, these three changes make acquiring an appropriate truck insurance policy more difficult than ever, especially to new entrants.
Unexpected Truck Insurance Risks
Truck insurance is important not only for risks involved in driving, but also for other, less obvious risks. A relevant example in the Australian context is the impact of bushfires on transport operators. A transport company’s largest assets (next to their depot) are their trucks and trailers. If several trucks and trailers were involved in a bushfire incident at their depot, this leaves the business open to catastrophic business risk.
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
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.
Truck insurance is important not only for risks involved in driving, but also for other, less obvious risks. A relevant example in the Australian context is the impact of bushfires on transport operators. A transport company’s largest assets (next to their depot) are their trucks and trailers. If several trucks and trailers were involved in a bushfire incident at their depot, this leaves the business open to catastrophic business risk.
QUESTIONS? JUST ASK
Andrew Terzakis
Will the principal who gives you regular work stop giving you work because of your claim?
What can be set up to keep your business going in the event of a claim?
Have you thought of any ideas to uphold your commercial relationships when all trucks and trailers are unavailable?
When the insurance company pays you out and you get your trucks back on the road, will the work be there?
But I’m uninsurable!
I do hear this a lot, clients come to me worried they may be “uninsurable”. I had one driver who was convinced of this after looking around for himself. The good news was that after a simple questionnaire along with sourcing some relevant documentation I was able to find a policy for the client, letting him get to work. That was life changing for him!
Should I use an insurance broker for Truck Insurance?
Definitely. With the high risks involved in trucking, the barriers for individuals to source a truck insurance policy that’s right for them, and the challenges of navigating a claim, an experienced and qualified truck insurance broker is an absolute business necessity for transport operators and truck drivers.
Reach out to me via my Advisr profile at Andrew Terzakis and we can get started growing your transport based business.
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.
All information above has been provided by the author.
Andrew Terzakis, Marsh Advantage Insurance, AFSL 238369
QUESTIONS? JUST ASK
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