Crucial Insurance Packages for Haulage Companies

For any modern haulage company, the matter of cargo logistics is an important subject. The logical next question is, then: "How do we insure our cargo?" Protecting not only your loads but also every aspect of the operation—from keeping your trucks in top condition, to ensuring communication at all times during the trip, to managing your people—requires specific insurance policies to cover every base. The following are just some of the options you currently have.

Liability Insurance

Often, no matter how rigorous the training of personnel and drivers, accidents still happen on the road. Such mishaps are a given, and so, too, should be liability insurance protection. A crucial part of making sure that your cargo logistics are taken care of is purchasing an iron-clad liability insurance policy - even before your operation starts in earnest. Such a policy is designed to protect you, your personnel and your business in the event of an accident that results in the injury of a member of the public, a customer or any of your employees. The policy works by paying out in the event of an accident or a mistake in the course of your work—you won't be liable for costs or damages incurred. The same goes for property damage.

Truck Insurance

A paramount first step, of course, is purchasing appropriate insurance cover for your truck. Even if you are still just starting out with a new haulage business and don't want to leave matters concerning your cargo logistics to chance, you need this if your vehicle's gross weight exceeds 7.5 tons. Truck insurance policies differ depending on the usage and the nature of the goods you'll carry. As a haulage operator, you naturally need to get the specific haulage insurance policy, which provides coverage if the goods or loads you carry are owned by someone else (a customer). Moreover, if the goods you carry are personal possessions, another type of truck insurance is required.

Fleet Insurance

If your haulage company consists of three vehicles or more, each of which exceeds the minimum of 7.5 tonnes, then you’re best off getting fleet insurance. Such coverage protects your entire fleet and provides certain benefits over the single truck insurance—obviously, if you own several vehicles, it makes sense to get the kind of policy that protects them all. In many cases, this is also much more cost-effective than other policies. A caveat, however: remember to discuss the fleet coverage with the insurer to make sure you are both on the same page as far as protecting your business is concerned.

Norman Dulwich is a correspondent for Haulage Exchange, the world's largest neutral trading hub and cargo logistics company for trading haulage work in the express freight industry. Over 2,500 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.

Writer and Online Marketing Manager in London.