It is a general truism that the more you know about something, the more you can protect yourself. Heavy goods vehicle (HGV) insurance might not readily come to mind as something you should know about, unless of course you are involved in the haulage industry. Even then, do truckers really know as much as they should about how well they are, or are not protected?
I live in Windsor, Ontario Canada where a second bridge is being proposed to handle the ever-increasing truck traffic. Along with this there has also been an increase in the number of accidents that concern these heavy-goods vehicles. According to the Insurance Institute for Highway Safety, “in 2010 over 500,000 'Large Truck and Commercial Vehicles' were involved in accidents; with over 100,000 people sustaining serious injuries, and over 5000 people dying in these crashes. This was compared to only 3200 deaths involving large trucks in 2009”. This trend can be extremely harmful to the overall profit of the business, as well as to the welfare of the employees and the public.
What is HGV Insurance?
Heavy goods vehicle insurance is defined as the regulation of the special needs of transport companies involving vehicles such as trucks through proper insurance policies.
HGV insurance generally covers heavy goods vehicles between 7.5 and 44 tonnes (16.5 to 97 thousand lbs.) and you need an operator’s license to get it. Vehicles are assessed based on the risk. The carrying of perishables, for instance, can be risky for transporting companies since any damage in the course of travel can be levied against them.
What are the Basic Types of HGV Insurance?
There are three basic types of heavy goods vehicle insurance available to HGV drivers or owners.
- Public liability policy, which offers coverage against damages caused to a business by the general public. It is termed 'open public liability coverage'.
- Employer liability policy. Although this does not provide cover in the event of road accidents, it does provide cover for damage caused by a range of accidents which may occur on and off the business site. This is a type of policy designed especially for the employer or owner and termed ‘workplace liability coverage’.
- Haulage exchange policy offers coverage against damage caused to the goods or cargo which is being carried by the HGV for a year or a shorter term.
In addition, 'primary liability insurance' is often mandated to protect the truck from damage or injuries to other people as a result of a truck accident.
How HGV Insurance Affects the General Public?
The bad news is that more accidents mean more lawsuits and more court time. And in these types of accidents insurance companies are very slow to settle. However, the good news is that haulers know that their insurance demands certain restrictions such as load limits and that failure to comply makes their coverage null and void. It protects us all.
How to Keep HGV Rates Down?
Increasingly, individuals are expected to know the risks that lead to increased pay-outs and premium costs for all types of insurance. For the haulage industry the following precautions are vital:
- Fitting tracking devices and alarms to allow the vehicle to be recovered in case of theft.
- Clean driving records lead to qualifying for cheaper quotes.
- Purchasing only new heavy goods vehicles because, increasingly trucks are stolen and resold to unsuspecting truckers
By ensuring safety on the road and driving responsibly, the costs associated with accidents such as insurance, repairs, compensation and loss of earnings are lowered.
James Gibson - James Gibson is a retired teacher and small business owner. He is a published writer and has a wide spectrum of interests.
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