The information in this post is of a general nature only. It does not take your specific needs or circumstances into consideration and does not overrule policy conditions that you may have in place. You should look at your own personal situation and requirements before making any financial decisions.
In all cases; please refer to your policy wording and contract for full details of cover.
Provided by our Senior Account Manager – Luke Prato
“I’ve almost polished off my thirteenth year providing insurance packages for businesses involved in operating quarries, earthmovers, demo contractors, concreters and the like. More often than not; when I’m contacted by a new client to obtain a quote on their gear, liability and so on; they’re surprised to hear the features they’re covered for as standard benefits. They may have already had cover for these things but weren’t provided the info from their previous intermediary.
At Ballarat Insurance Brokers we aim to provide regular information blogs in the hope to supply our connections and followers with an improved understanding of either the cover they have or the cover they can obtain.
Today, I provide this published info to assist you in understanding what features are available and what questions you should ask your insurance provider if cover is in place:
Am I covered for Agreed Value?
Traditionally; motor vehicle policies are structured as such to indemnify you; the insured party, for the Market Value at the time of the loss or the listed sum insured; elected by you. Claims are generally settled on the lessor amount subject to the benefits of the policy (i.e. Finance payout etc). Agreed Value can be offered at times; but proof of value are expected to be provided to justify the elected sum insured and need to be agreed by the insuring Underwriter. Unfortunately when it comes to insuring Trucks, Plant and Equipment the insurance industry does not have access to a “redbook” facility to determine a standard value for an item due to the need of having to consider; Number of hours worked, new tracks, rubber or metal tracks, condition and type of cab etc. Brokers should always suggest that you the policy holder review your sums insured to ensure their adequacy as they could quite easily appreciate or depreciate a significant amount even within a 12 month period.
Am I covered for my attachments?
Some specialist insurers in the current market offer benefits to cover unspecified attachments or accessories. Most of the time this is limited; we would always suggest you list your attachments or accessories to ensure you know what you have covered and are not affected if the benefit limit or sum insured is not sufficient.
Will the interest owed on my gear be paid if it’s a total loss?
Again, with the competitive climate currently affecting the earthmoving insurance market; most insurers are offering a few “bells and whistles” to their standard policy. One feature we’re seeing offered alot more is the finance payout. Although usually limited to a particular percentage; having this covered in the event of a loss can be of great aid to you and your business. It’s even better if your insurer offers it without you incurring additional premium costs.
What options are there if I need a temporary replacement machine?
Although some insurers offer loss of revenue as a result of damage to your vehicle or machine; having cover to hire in equipment will not only ensure your business can continue to operate it will also ensure you’re still able to perform for your customer, hopefully before they find need to seek alternative arrangements. Most insurers do not throw this in automatically and as such your broker may need to obtain info from you to arrange this additional cover.
I’m thinking of Dry Hiring my gear; how will this affect my insurance?
Most insurers don’t have an issue with you hiring out your machinery or vehicles as long as they get to view your Dry Hire agreement or info relating to “Damage Waivers”. Although we do see an increased chance of claim once a machine is hired out, cover can be specified to cover this exposure and in some cases a small increase in premium may need to be applied. Always be sure to obtain confirmation in writing from your insurer or broker to remove any uncertainty should a claim or loss occur.
What if I operate a Machine that I’ve hired on a dry hire basis?
In all cases you must refer to your policy benefits on your own policy contract; we are seeing an increase in insurers offering cover for machinery that are hired in by clients that they do not own. In most cases this will be limited to a sum similar to the sum insured offered for your own equipment. In all cases; it is strongly suggested that these items be specified to remove any uncertainty should I loss occur,
What if I decide to purchase a new machine after general business hours and need cover?
We’re now finding that most insurers who offer commercial and/or fleet motor insurance are now including automatic additions and deletions as part of their standard wording. Where this helps is; if you elect to purchase a machine after general operating hours and am unable to get written confirmation that covers’ in place. This ensures you have cover even if you leave insuring an new purchase item to the last minute subject to the limits specified in the policy; which in most cases varies from $100,000-$500,000.
We hope this info is of some assistance to you or your clients and we ask that you monitor your feed for more information blogs to come. The next one will provide free info on Liability Insurance.”
Thanks for connecting and reading,
Luke Prato – Mobile 0438 999 388 – Senior Account Manager & Earthmoving specialist
The information in this post is of a general nature only. It does not take your specific needs or circumstances into consideration and does not overrule policy conditions that you may have in place. You should look at your own personal situation and requirements before making any financial decisions. In all cases; please refer to your policy wording and contract for full details of cover.