Are you a transport company or an owner driver starting out as a subcontractor and purchasing a prime mover?
Operating expenses for transport companies can include fuel, wages, mechanical repairs and last but not least insurance. Getting the right prime mover insurance can be a difficult task and it’s best to rely on a specialist broker to provide you with the right covers for your transport business.
Prime mover insurance is covered under a commercial motor style policy with comprehensive cover for the truck and non owned trailer in control included.
Insurance premiums can vary significantly and insurers will quote a customer different based on their business experience, and no claim bonus history. Some insurers such as Zurich will offer full no claim bonus for a start up whereas NTI will discount for customers who have a long track record of good driving. From a brokers perspective nti and Zurich are easy to deal with because they offer electronic instant pricing whereas underwriters such as pen and ATL require an email quote and it can take 1-2 business days. Clients should factor this in when purchasing insurance as it can take a couple of days to source quotes.
Consideration must be given to the operating radius of the prime mover and what sorts of goods you are carrying. Are you carrying refrigerated trailers, dangerous goods or livestock? Or doing long distance interstate transport? Or operating a road train? These are often considered the more high risk situations and the premiums will reflect same.
The most common limit provided as standard for trailer in control is $75,000 in most prime mover insurance policies such as nti and Zurich insurance. However for an extra premium these can be increased up to $300,000 depending on the contractual requirements under your job.
You may also consider business interruption insurance for your prime mover. This is usually facilitated as a weekly cash benefit whilst the prime mover is being repaired or assessed. Some insurers offer business interruption whilst others do not. Typical business interruption covers can include $1500-$3000 per week depending on the requirements.
I’m addition as part of the package for prime mover insurance we can provide public liability and marine carriers for the load if necessary.
Speak to an Insuregroup representative about getting the right cover for your prime mover and transport business.