We have teamed up with Towergate Insurance and each month Towergate will give replies to some of the most common questions regarding insurance that they are asked
http://www.Towergate.co.uk Tel: 0844 892 3470
Q) We operate a number of refrigerated trailers. The refrigeration unit on one of those trailers recently broke down leading to the contents deteriorating and having to be destroyed. Can we insure our business against this risk?
A) Refrigeration breakdown cover provides protection against this type of risk. Cover is normally only available for properly installed, serviced and inspected refrigeration equipment.
Q) We’re looking into the possibility of employing a couple of young, recently qualified HGV drivers. We can’t see anything on our insurance certificates that says they couldn’t drive. Does this mean that the two lads we have in mind can drive our trucks without us having to first notify our fleet insurer?
A) Drivers’ age restrictions are not shown on certificates of motor insurance. Instead, they are shown in the policy wording or schedule so check these carefully. If you require cover for anyone not currently authorised, your insurer must first be advised so that appropriate cover can be arranged. If you are in any doubt at all, better to ask your insurer or insurance broker for advice.
This months Q&A’s
Q Our motor fleet policy has an exclusion that says that if a vehicle is driven in a way likely to affect safe driving or control, then there will be no cover in the event of a claim. Does this mean for example that if one of our HGVs was to roll over on a roundabout, there would be no cover?
A On the basis of that exclusion, it’s quite possible that your insurer would decide that the only way the truck could have rolled over is because it was being driven too fast. Query this issue with your broker and if you are not satisfied with the response, consider switching your fleet insurance to another provider.
Q We recently had some truck keys stolen from our office. Worried that the person who stole the keys might come back another day and steal the trucks, we decided to replace the locks just in case and put in a claim for the cost of doing so, only to find we had no cover for replacement locks.
A majority of policies do provide such cover, usually providing it’s apparent that the person who now has the keys is likely to be able to find the truck that the keys relate to and steal it. Talk to your broker about this issue, and if you don’t have cover, ask your broker to get fresh quotes when your policy is due for renewal
Q: Last year I arranged a legal protection policy that includes contract disputes. My insurance company has said a claim I recently notified isn’t covered because the incident giving rise to the claim occurred before we arranged the policy. However, the dispute itself only began in the last few weeks and until that point we weren’t aware that the customer wasn’t happy. We feel the claim should be covered as the dispute has occurred during the period of insurance.
A: Ask your broker to study the policy wording carefully and to advise you as regards cover relating to contracts or agreements entered into prior to you taking out the policy, how they define ‘date of occurrence’ from the point of view of contract disputes, and what they say as regards cover for incidents occurring prior to the policy being taken out. Your broker can then advise you on how best to proceed.
Q: We recently had a theft claim rejected by our insurer on the grounds of ‘non-disclosure’. How are we as customers to know what is or isn’t a material fact?
A: There is an established legal principle that requires all parties to an insurance contract to make a full disclosure of material facts. A material fact is one that would influence a prudent underwriter, when considering whether or not to underwrite a risk, the amount of premium to charge, or the terms and conditions appropriate to that risk. Most proposal forms make it clear that if the proposer is in any doubt as to whether a fact is material or not, then it should be disclosed. Ask your broker for advice.
Q My truck insurance policy gives me up to £5m cover for third-party property damage. However, I have noticed the limit for causing stoppage or interference with ‘traffic’ — which includes rail traffic - is only £1m: is that adequate?
A Any damage caused to property that forms part of the rail infrastructure comes with the possibility that rail lines may well have to be closed for a period of time. The compensation payable to the rail companies could run into a seven-figure sum and as such a £1m limit could prove inadequate. Ask your broker to negotiate an increase in the limit or consider switching to another insurer.
Q Sometimes I have to leave a trailer parked up in a lay-by while I use my tractor unit for another job. If I do this and someone drives into my parked trailer and then says it was my fault because my trailer didn’t have any lights on, will my motor insurance cover me?
A Unless cover has been specifically agreed, the answer may be no. From a third-party perspective, some policies only cover trailers while attached, others cover them only while attached or accidentally detached. And some only provide cover for specified trailers. Ask your broker for advice.
Q) Will my truck policy cover me for loading and unloading building materials on sites that are off the road?
A) The issue that needs to be considered carefully is whether your commercial motor policy covers you as the driver when loading and unloading off the road in circumstances where the Road Traffic Act does not apply. Most commercial motor policies do provide this cover but one or two restrict cover for loading and unloading to carrying out this work at the roadside. Check your policy carefully and ask your broker for advice.
Q) I’m an owner-driver and I always have some of my personal possessions and spare items of clothing in my cab. How should I insure such items?
A) The best option might be arranging an extension under your goods-in-transit/hauliers’ liability policy. An ‘all-risks’ extension under your household policy might help, but look carefully at relevant exclusions such as losses from unattended vehicles or cover restricted to items in locked boots or glove compartments. Some commercial motor policies may provide cover under an extension but make sure the excess is low and any claim won’t affect your No Claims. Ask your broker for advice.
Q I recently got caught up in strike action abroad and found myself stuck for a couple of days. Can I arrange insurance cover to guard against the consequences of such a delay?
A Limited strike and road block cover is available through one or two insurers. Exclusion of cover for the first 24 hours is typical as are limits in the region of £300 per day of delay, and £10,000 for any one event. If the real worry is issues such as deterioration of stock on board your truck, then other types of cover need to be considered.
Q If I was to fit additional security devices such as an alarm or immobiliser, can I expect to see my truck insurance premium reduced?
A Insurers do typically offer discounts in return for the professional installation of devices that in their view will significantly reduce the risk of theft. The fitting of a Thatcham category H1 (combined alarm/immobiliser) or H2 (electronic immobiliser) device might typically attract a discount of perhaps 10%. As well as discounts, keep in mind the wider benefits of deterring vehicle theft such as avoiding premium hikes, vehicle down-time and the hassle that goes with losing a truck.
Q Some of our drivers still park in lay-bys despite being aware of the security risks. When we ask them why they don’t use truckstops, they say they don’t know
where to find one. Is there a source of information available to help them?
A Plenty of information about lorry parking is available on the internet from organisations such as the Highways Agency and Transport Scotland.
Some truckstops no doubt have an excellent reputation; others may not be as secure as one might wish, so care is still required.
Q We recently employed a new driver. From what we’ve seen so far, we find it hard to believe his licence is clean, which he claims it is. Is there any way
we can check his licence?
A Licence Bureau will be able to check DVLA records for you and establish what the position
is regarding all your drivers’ licences. Given your concerns about your employee’s driving skills, think carefully about whether you wish to continue to use his services. If an accident looks like it’s waiting to happen, then it probably is.