The main difference between standard domestic insurance and Lorry Insurance is the elements that make up the policy. When running an business there are steps that have to be taken to protect yourself from claims arising from the public. If you are transporting goods that do not belong to you, for clients, you need to ensure that these too are adequately insured. So what elements make up a lorry insurance policy?
- Cover of the vehicle
This goes without saying. Double check when asked that the specification of your vehicle has been correctly stored on the DVLA database. Insurance companies rely on this information and if left with inaccuracies your policy could be invalidated. Nine times out of ten it is correct but the onus is yours to confirm this.
- Public Liability Insurance
No business should be operating with a comprehensive public liability policy. If you are in any form of business that takes you into the public domain where your equipment could potentially cause an accident – you need this cover.
- Legal expenses
This is an item that features increasingly in domestic insurance as well as trade insurance. For the individual driving a domestic vehicle it is up for discussion – for those in trade, you would be ill advised to turn this down. Should an incident or accident occur that is deemed to be your fault, compensation maybe sought by the injured party. Unfortunately it is now considered normal to seek litigation from any form of accident. You will need to appoint a solicitor to act on your behalf and this can easily be quite costly.
- Breakdown cover
What will happen if your vehicle breaks down at the side of the road. What if you get up one morning and find the lorry just wont start. If you are a large company with an in-house mechanic the latter scenario may well not be an issue. However if you are a small company without the luxury of mechanics or you are over 500 miles away from your mechanic how will you cope. Breakdown cover is vital if you want to be recovered quickly and efficiently to minimise impact on your schedule. Make sure you are including comprehensive road side assistance, and have arrangements in place for onward transportation of the load if the lorry cannot be fixed there and then.
- Goods in transit cover
A vital element of your lorry insurance is the protection of the load you are carrying. Different companies offer many ways of doing this but you need to make sure you fully understand the quote. Cover that pays a fixed amount per tonne maybe appropriate for low value cargo but can leave a significant shortfall with high value goods. Make sure the cover is for both in transit and parked. Check that you are covering damage, damage resulting from an accident, theft and loss. In short you need to be 100% sure that you have 100% cover for your goods as any issues where the insurance company does not pay out or the policy maximum does not cover everything, are your responsibility.
Toby Higgins writes for Truck Magazines and other truck industry related sites.
