Construction and other earthmoving companies often, must hire or lease trucks, bobcats, cranes, heavy equipment, and other machinery needed for their projects. Instead of buying these million-dollar mean machines, leasing seems to promise a more lucrative way for them to rake in more revenues. All they need is to find a supplier in the area and obtain hire fleet insurance compete with liability coverage and they are in for the long haul ahead.
Why Get Insured?
It is not as simple as it seems though. Obtaining an insurance in Australia for a hired fleet may not be a requirement as many fleet owners have adequate policies to cover their wares, many of this hire fleet insurance coverage are designed to give lessees safety net from huge financial losses when accidents happen or when these hired machineries do damage to third parties. While some lease contracts stipulate insurance coverage, this are often limited.
Be reminded that there is various coverage for fleet insurance intended for the original owners. Some may go for a pricier comprehensive insurance. Most often than not, however, fleet for hire go for third party plus theft and fire or third-party coverage only to save cost. Therefore, getting your own insurance protection on top of that of the lessor will be of great help should untoward incident happens.
Going beyond insurance policies and their benefits, lessees must also exercise vigilance when contracting with a fleet for hire. As mentioned, businesses involving these mean machines spell trouble long before they start operating. Risks are always looming in the horizons like ticking bombs waiting for that perfect time to go off and blast away one’s investment.
Setting preventive measures matter a lot when operating a business involving moving vehicles and machinery. Aside from obtaining necessary hire fleet insurance or at the very least, liability coverage as add-on to the lessor’s fleet insurance, ensuring that required health and safety certification of vehicles being hired must be compliant to applicable Australian regulations and standards. It is prudent to ask for proof of certification as well as updates done on such. Every reliable fleet owner will have this information handy for a contractor to verify from operator’s manuals to inspections and preventive maintenance, fleet registration and license to operate, and so on.
Bottom line is: Managing a business that requires contracting for hired fleets can be a challenging venture. It can be deduced, however, that having a reliable hire fleet insurance is a boon so long that it covers all the needed risks of one’s business operations. To pump this up, setting efficient safety checks and trusting relationship with a fleet for hire entity will spell success for the business.