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Motor Fleet Insurance - Understanding the key terms
Business Insurance
Business Car Insurance
Commercial Motor Fleet Insurance
Transportation and Infrastructure Insurance
Motor Fleet Insurance policies can be full of technical jargon.
Whilst critical terms are important, we’re breaking them down to help you better understand what they really mean. If you need more detail or get stuck on a term, please reach out and connect with us further. Terms and definitions may change slightly depending on the insurer you are dealing with and the specific motor fleet insurance policy wording that you end up utilising.
Key Motor Fleet Insurance Terms:
Accelerometer - a device that measures the acceleration of your vehicle
Aggregate Loss Limit - the maximum amount payable by you when making an insurance claim.
Automatic Addition - When covered with some Motor Fleet Insurance policies, any additional vehicles that you purchase may be automatically covered, by your existing policy, if they are a similar type of equipment the vehicles already insured.
Claims Handling Fee - a fee that is payable when an insurer assists in handing claims for losses not covered by the issued insurance policy.
Consequential Loss - A financial loss that is incurred when you are unable to use your vehicle.
Dangerous Goods - Freight that you carry that includes goods that are defined as dangerous within the Dangerous Goods Code.
Downtime Cover - Protection for any financial impact you may experience from having your truck off the road because of an accident
Dry Hire - when you hire out your heavy vehicle or a part of your motor fleet, without the provision of a driver.
On-Board-Diagnostics (OBD) - a vehicles self-diagnostic and reporting capabilities. OBDs may monitor engine performance and provide early detection and warnings.
Pay by the month - The ability to pay your truck or motor fleet insurance premiums in monthly instalments rather than an annual lump sum. This can assist in cashflow management.
Permanently Attached Plant - a piece of equipment that is connected to your vehicle and is necessary for your vehicle’s operations in the course of your business. For example, a crane arm, concrete bowls, tilt trays. hydraulic lifting equipment and concrete pumping equipment.
Total Loss - When the insurer decides that your truck has been very badly damaged and a total loss settlement has been made. The insurer agrees to pay either the market value, agreed value or sum insured the costs or to pay for a replacement truck. The insurer retains the damaged truck.
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.
Total Loss - When the insurer decides that your truck has been very badly damaged and a total loss settlement has been made. The insurer agrees to pay either the market value, agreed value or sum insured the costs or to pay for a replacement truck. The insurer retains the damaged truck.
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Channelle Ricketts
Vehicle Overloading - when your vehicle carries a great number of passengers or tows a load in excess of the limits for which your vehicle has been designed. You need to know your loading limits and the size of your load.
If you are operating a Motor Fleet, trucking business or heavy transportation business, Urban Insurance can help to ensure that adequate motor fleet insurance is in place to ensure your business is covered for all of its risks.
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.
Channelle Ricketts, Urban Insurance, AFSL 233750
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