If you operate a trucking business, downtime insurance cover can be one of the most important things you’ll invest in.
Why? Because in the case of unprecedented events that could slow down or even stop your business operations completely, the last thing you need is additional financial strain and worry.
Just look at COVID-19 and the significant impact it has had on supply chain and manufacturing. Mechanics have been waiting for up to three weeks for parts, and as such, truckers have been unable to work while they wait for repairs.
Fortunately, downtime cover for trucks pays out your regular full income while you’re down and out of work.
What is truck downtime insurance?
Downtime truck insurance is designed to compensate for the loss of earnings as a result of being unable to operate due to damage or loss of the insured trucks.
Whether it’s general maintenance for wear and tear, unavoidable accidents or vehicle failure, truck downtime ensures you don’t take too much of a financial blow while you’re off the road.
Most insurers can approve repairs in less than 7 days, but when mechanics have to wait for parts to be sent to Australia, it can take between 3 to 12 weeks until your vehicle is back on the road.
Why do truckers need downtime insurance?
Unfortunately, many truckers get an unpleasant surprise when they realise their existing policy isn’t as comprehensive as they had thought.
If you’re forced to temporarily close due to no fault of your own, a loss of earnings can open up a whole can of other problems. Staff wages to pay, household bills, mouths to feed – it’s simply not worth the risk of not having downtime cover.
Truck downtime is also inevitable. Even with the best mechanic and high-quality parts, trucks in your fleet are bound to break down and will require major repairs at some point down the line.
Here are some other benefits of truck downtime cover:
- Get paid your full wage while you’re unable to work
- Hire a rental truck so you can continue your trucking contracts
- Get assistance with finance payments on your truck
How much does downtime cover for truckers cost?
You can expect to pay around $300 for annual downtime cover. Do bear in mind that the cost of a premium is impacted by the value of the vehicle and the duration of the cover period, i.e. will you need downtime to cover a 30 day period or a 120 day period?
Different insurers offer different downtime cover, for example:
- Replacement vehicle cover, i.e. reimbursement of hosts to hire a vehicle so that you can keep working
- Lost income cover, i.e. covers the lost income or weekly insured amount while your truck is off the road
Get your downtime truck insurance quote today
At Insurance HQ, we work with commercial truck businesses of all shapes and sizes. We have access to the largest range of transport specialist insurance companies in Australia.
If you need advice on what type of downtime truck insurance is best for your business or you’re looking for a more cost-effective package, we’ll be more than happy to discuss your needs and find a competitive solution for you.