Most businesses use different types of vehicles for commercial purposes. Depending on the business, the vehicles used ranges from taxis to minibuses to trucks. In order to protect your commercial vehicles, it’s a good idea to have commercial vehicle insurance.
The Transport and Logistics industry in Australia reportedly generates around $201 billion a year in revenue. To put that number in perspective, it accounts for around 15% of the GDP. This indicates how important it is to have a good coverage for commercial vehicles.
The Commercial Vehicle Insurance, covers range of things based on the types of coverage. There are mainly three types of coverage that you can choose from for your business — Third Party, Comprehensive, and Third-Party Only.
Third Party Only Commercial Vehicle Insurance
This is the cheapest form of coverage and as the name itself indicates, it offers protection only against third-party damage or injury claims. This means that your vehicle isn’t covered and your business will have to bear all the expenses to fix it in case of damage.
Coverage Includes Following:
- Uninsured Motorists
- Substitute Vehicles
- Non-owned Vehicle Liability
- Loading and Unloading
- Legal Costs
- Falling Goods
Third-Party Fire & Theft Protection Vehicle Insurance
This is an extension of the third-party only insurance and offers more protections. Along with the third-party coverage, this policy also includes protection of your own vehicles as well as protection against damage caused by fire. It also includes coverage from theft or damaged causes in an attempt of theft.
Coverage Includes Following:
- Fire brigade & Emergency services cost
- Replacement of vehicle if stolen
- Damages on theft attempt (broken lock, stolen radio, etc.)
- Uninsured Motorists
- Fire damage to the vehicle
- Substitute Vehicles
- Non-owned Vehicle Liability
- Loading and Unloading
- Legal Costs
- Falling Goods
Comprehensive Commerical Vehicle Insurance
This one is the most expensive coverage among the three but also comes with the best form of coverage and highest-level of protection. This policy covers damage to your vehicle or the third-party vehicle for almost any kind of accident or incident.
Coverage Includes Following:
- Fire brigade & Emergency services cost
- Replacement of vehicle if stolen
- Damages on theft attempt (broken lock, stolen radio, etc.)
- Uninsured Motorists
- Fire damage to the vehicle
- Substitute Vehicles
- Non-owned Vehicle Liability
- Loading and Unloading
- Legal Costs
- Falling Goods
- <List of more coverages goes here>. Still researching it.
Your business is also allowed to assign a specific driver to the vehicle if you have assigned a vehicle to a particular driver in your organization with “Named Driver” policy. If your business has a pool of drivers who rotate between vehicles based on the availability, then you can opt for “Any Driver” policy. All the three types of coverage mentioned above supports this. Your organization is also allowed to define certain other terms for the drivers, including their age, previous convections, etc.
There are several nitty-gritty details that you need to understand before purchasing the Commercial Vehicle Insurance Policy for your business. If you do not have an in-house resource to evaluate the requirements, we at 2BSure Insurance are just an appointment away to help you.
We have years of experience in the insurance market and can help you and your business regardless of the kind of vehicles that you own – one vehicle or an entire fleet. Our team will work with you to perform risk identification analysis and come up with the best coverage plan.
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