Haulage Insurance – Major Risks to the Industry
When it comes to haulage insurance there are two main types of business vehicle insurance including goods and haulage. If you are carrying your own stock in the vehicle along with equipment and materials for a project you are personally working on, this is classed as your own goods. If you are carrying anyone else’s goods or materials as a service, this is then classed as haulage.
There are a number of risks both old and new that could affect the haulage industry. The more informed you are on these risks, the more likely you are to be able to deal with the outcomes in the best possible way. Here are some of the major risks that could impact the haulage industry.
At this moment in time, there are a huge number of driver shortages in the UK, these shortages have come about due to an ageing population, a higher demand for e-commerce and new recruiting challenges. Not to mention at the time this article is being written we currently have the NHS app which is pinging people who have been in contact with someone with the COVID-19 virus.
The app is there to protect people, however, it is causing a number of staff members to have to go home to self-isolate. This is impacting the driver shortage on a huge scale.
When we talk about transportation, there is no way you can’t talk about weather as a risk. Yes, we can’t control the weather but it is important to factor in. Temperature and weather conditions can drastically change within just a hundred miles, crossing from a heatwave to a blizzard or even torrential rain all in one trip.
As mentioned above, we can’t control the weather, however, you can have buffer windows, prepare for different weather conditions to help reduce the risk that the weather can cause.
The motorways and other roads are becoming increasingly dangerous for vehicles. Did you know that traffic congestion wastes around 2 and a half billion in fuel? Delays in delivery of goods can lead to cancelled contracts and ruined stock. This sounds like it could be unavoidable, however, it is through the right cover.
Roads can be unpredictable so you could be struck by another moving vehicle, have a load fall, fall from the vehicle itself or have a vehicle overturn or collapse, all of which could cause serious injury and/or death. You need to protect yourself and your employees from these accidents through the right cover.
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Cyber liability is probably not the first thing that comes to mind when you think of risks to the haulage industry, but nowadays EVERYTHING is online. Every industry faces exposure to cyber risks and the haulage industry is no different. There has been a range of technological advancements in the transportation industry and automation is everywhere from supply chains and more.
If a system fails, the ability to receive or ship orders, hackers tampering with information, or loss of destinations can all cause serious delays and more. Having a response plan in place is imperative and having cover is the first way to do so.
More Recent Risks
It is no secret that we have all been through a lot recently with COVID-19 & Brexit. These two events have changed the way in which we live and work and it’s imperative to talk about this in terms of haulage to cover all risks.
Haulage and logistic workers are amongst those classified as key workers due to the vital role they play in the community. Hauliers are playing a critical role in the pandemic, keeping food on our shelves and delivering medicine where it is needed to healthcare workers.
If you are a haulage driver from a range of different countries, several countries have introduced COVID-19 testing requirements for hauliers, the rules are different in each country so it is imperative to look at these rules before travelling.
In regards to Brexit and haulage, the admin will be the key thing that will change. 66% of UK hauliers are concerned about the increased admin required to cross the border. Some Hauliers have seen a positive impact to Brexit and have seen an increase in demand. As well as this employment in this sector has increased too. There are some, however, that have struggled to see a decrease in business and 15% of companies needing to make redundancies – it is totally dependent on your business.
The main problems that hauliers have noticed include increased waiting times, higher tariffs, less access to goods from the EU, changes in licencing and registration requirements and less access to staff across the border. Some people have noticed no chance, this is quite low.
What Types Of Insurance Cover Can Help Me?
If you transport goods over long distances in vast loads and have a range of expensive vehicles to do this, haulage insurance will be a lifesaver and will be able to help the longevity of your business. Each haulage business is different which is why [broker_name] ensures that our haulage insurance can be tailored to your business’s individual needs.
– Motor Fleet Insurance – Fleet insurance is business insurance aimed at businesses with two or more vehicles, this will range from minibuses, lorries, trucks and more.
– Employers’ Liability – Employers liability insurance covers you and your company if an employee becomes poorly or is injured as a result of their duties.
– Public & Products Liability – Public liability cover will protect you if someone else’s property is damaged or if a member of the public is injured by you, your employees or a product/service you supply.
– Products liability insurance covers you if anyone is injured by a faulty product that your business designs, manufacturers or supplies.
– Hauliers’ Liability – Hauliers’ insurance protects you from any loss or damage to goods that you are transporting.
– Material Damage Insurance – Material damage insurance will protect your business premises, contents and equipment against the threat of a disaster.
– Business Interruption Insurance – Business interruption insurance will cover you in the event that your business has to stop running normally, this is usually due to a disaster, flood or fire.
– Book Debts – This type of insurance covers the cost of reproducing records and chasing debtors following the destruction of accounting records in an event.
– Computer & Cyber Risks Insurance – Cyber risk insurance is designed to support your business if any computer networks are breached, causing information to be stolen or ransomed, business operations to be interrupted, computer systems to be corrupted and other serious professional consequences.
– Personal Accident – Personal accident insurance is designed to protect you if you suffer from a serious injury or death as a result of an accident.
– Environmental Impairment Liability – Our environmental impairment liability covers you from risks arising from past or current operations. Cover will usually involve claims for clean-up, bodily injury and property damage arising from pollution.
– Engineering & Inspection Insurance – The purpose of this insurance is to ensure that lifts, boilers, electric gates and more are safe to use and are inspected to minimum legal requirements. It will help to protect against any breakdowns.
– Directors’ Officers’ Liability – Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.
– Vehicle Breakdown Cover – Vehicle breakdown cover will cover you if you break down during any of your journeys.
All of these risks can be managed by examining what goes on in your business, removing and controlling any hazards and making sure there are steps in place if they do happen. It is imperative to carry out risk mitigation for your business. Rather than planning to avoid a risk, mitigation allows you to deal with the aftermath and the step to take afterwards.
If you have carried this out, we would suggest sharing this with your insurer, so they can suggest the best possible covers for your specific needs. There is a huge range of templates available online to help you start the process.
If you would like more information on the risks in the haulage industry and how to keep on top of this insurance-wise please get in touch with a member of the [broker_name] on [broker_phone].