Given Australia’s vastness, it’s not surprising to know that we rely upon heavy vehicles to transport goods. According to the Department of Infrastructure, Transport, Regional Development, and Communications, around 75% of non-domestic goods are moved through roads.
Commercial Truck Insurance is designed for vehicles that are used to transport goods in heavy traffic for long hours. How the truck is used will reflect its risks.
If your business owns trucks, it’s important to get protected through commercial truck insurance. Let’s examine how this type of insurance is essential:
1. Law requires it
The law requires all commercial truck owners to get the right insurance for their fleet. And if you’re a respectable businessman, you will abide by the law.
If the authorities discover that your truck doesn’t have the right type of insurance coverage, you will be facing severe legal issues. These issues can threaten your business.
- It Is Better to Prepare for the Worse
According to a 2016 report of Safe Work Australia, 1 in 3 workplace accidents involved a transport worker. It would be irresponsible to assume that nothing bad will happen to your vehicles. The risk is always there—no matter the training and maintenance. Do not underestimate the minimal level of risk and get commercial truck insurance.
Even if it’s just a crack on the window or a detached light, you’d wish you had insurance.
- Protect You from Third-Party Claims
If your truck caused damage to another person’s property, you could rely on your commercial truck insurance.
Liability Insurance: This covers any damage to other parties involved in an unfortunate incident. If your vehicle caused bodily injury or any damage to other vehicles, buildings, or other types of property, this policy would provide pay for it.
Physical Damage Insurance: It protects your fleet from damage inflicted by another person or vehicle, or severe weather.
- It Protects Your Cargo
“Depending on your cargo, all sorts of things could happen. These can get lost or damaged—and you would be responsible for them. If you’re using a truck, chances are, you’re hauling large quantities. Thankfully, there’s a specific type of insurance for freights.”, says Shane Perry, a Max Funding consultant for short-term business loans.
5.It Protects Your Truck Even When Not in Transport
Regular truck insurance doesn’t provide protection when the fleet is not transporting anything. This means your vehicle may not be covered when it is returning home after a delivery. Because anything can happen on the road, experts recommend truck owners to get “bobtail insurance”.
This is non-trucking liability insurance for times when the truck is not in operation.
- Builds Customer Confidence
If you’re providing transportation services for other companies, it’s essential to display a sense of reliability. Customers feel more secure if the merchandise and the truck itself are covered by insurance. With insurance, they know that they will be paid up in case anything happens to the merchandise.