Insurance for the Hospitality Industry – What you need to know

Having the right insurance for commercial vehicles is priceless. With this insurance, you can go on driving on the road with peace of mind. Commercial vehicle insurance provides coverage that you need for sedans, trucks, vans, utes, trailers, and any other type of automobile you use for your business. Typically, you can purchase motor vehicle insurance as a standalone product where you can add more than one vehicle under the policy. Another option is to have it included in your business insurance.
Suppose transport is part of your business transactions. In that case, you should protect your vehicles with proper insurance known as commercial car insurance. It’s designed for heavy-duty vehicles and uses.
Many Australians use one car for both personal and business purposes. So, if you drive a vehicle from your home to your business, you need business car insurance.
Anything can happen to these assets. A business-use vehicle is almost always on the road, compared to a private car. Often, they are used during busy times of the day where there are pedestrians and other vehicles around.
Accidents can occur while on the road, resulting in damage that requires costly repairs. The vehicles can also be stolen. These instances can cause some delays in your business operations, stopping either your products or staff members in their tracks. These interruptions cost time and money.
And since business-use cars are frequently in use, they see more kilometres than the personal-use car you have in your garage. Therefore, they generally have an increased risk of mechanical faults. As a business, you already have other costs to worry about other than worn-out tyres. But if you do not ensure the condition of the vehicles, they could cause accidents to your drivers and other people on the road.
It’s a good thing that you have car insurance to turn to. This type of insurance, as the name suggests, is exclusively for commercial purposes. No matter what industry you’re in and the products or services you offer, you can find an appropriate insurance policy for your commercial vehicles.
There is no specific price or premium (the amount you pay) for a particular commercial car insurance cover. The premium is typically specified in the insurance policy or the legal contract between you and the insurer. It’s important that you read the schedule and other endorsements, along with the Product Disclosure Statement (PDS) and Supplementary PDS (SPDS). These documents give you all the pertinent information you need so you understand your policy. They generally provide:
When talking about the premium payable, it’s subject to Commonwealth and State charges and taxes where applicable, which may include:
The cost of your insurance is based on your case. It can be different from another business owner or a family member. Some things impact your premium, such as:
Certain accessories and modifications can also increase your premium if they contribute to insurance risk. The premium of the policy is also based on the age of the car and drivers. Both factors may or may not increase the premium. It all depends on the probability of making a claim.
Please note, though, that premiums can change due to various instances. For example, the Government charges and the taxes in the country may shift, resulting in insurance cost fluctuations.
Commercial car and vehicle insurance, at the very least, should protect your business against the effects of any claim. Your reputation can be tarnished if you do not settle claims. It’s often an issue, though, to find the right cover option for our business. With so many available, how do you know which cover is best for you?
Here are some tips:
It’s important to know exactly what’s covered and what’s not. Cover for additional vehicles may be provided, although there could be some restrictions. Don’t hesitate to talk to the insurance company or a broker to help you with the entire process.
This article originally appeared on Grace Insurance Blog and has been published here with permission.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Frans du Plessis.
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