Insurance – Trucks & Heavy Equipment

Sourcing Better Value Insurance

Insurance is a major expenditure for truck and heavy equipment operators. The value of the vehicles combined with the working environment can attract very high insurance premiums on your vehicles. If you own multiple vehicles, the premiums can be a very significant business cost and if the annual payments are due around the same time, it can put pressure on your cash flow.

It’s not only the insurance on your vehicle, you may also have to purchase carrier liability insurance and other policies as part of your business obligations.

Using an Insurance Broker

The insurance sector is a very competitive marketplace. There are a large number of players from the large, multi-national and long-term companies to new businesses entering the market. This can mean an opportunity for operators to source a better deal on their insurance. But in some cases, this means having to get a quote first from multiple companies in order to make comparisons. And that involves, you guessed it, time. And a very in-depth understanding of the technical terminology used in the industry in order to fully appreciated what is and isn’t covered in each policy.

When it comes to insurance, cheapest is not always best as the value is in what is actually covered and hence, what risks you are prepared to accept if you’re not covered.

A way around all these issues is to use and insurance broker. Similar to using a finance broker to source your vehicle finance, an insurance broker will use their industry contacts to source you best policy for your vehicle.

Could be worth considering and we’d be happy to put you in touch with our contacts in that field.

Insurance Premium Funding

A specialist area of finance that not all business owners are aware of is Insurance Premium Funding (IPF). It is essentially as the name implies – finance to cover your insurance premiums.

While many consumer insurance policies offer a pay-by-the-month option, the same convenience is not always available to business policies. IPF makes such a concept available to business.

A finance broker can work with you and source you finance to cover your insurance premiums. The lender pays the premium on the due date (usually annually) and you make repayments to the lender on a monthly, quarterly or half-yearly basis. The repayments will include interest and any other charges associated with establishing the finance facility.

Depending on the industry you operate in and which particular insurance policy you would like IPF to cover, it may be obtained for premiums from $5,000 to $1 million.

If you’re interested in talking with a professional in regard to your insurance requirements, we know people who operate in the sector and can connect you with them. Just contact us for details.