Motor Liability – Dangerous Goods

Truck Insurance

Recent fatal incidents involving merchandise have raised grave concerns in the transport of dangerous goods.  The Rail, Tram and Bus Union have urged the government to amend laws to prohibit long distance transport of dangerous goods by road and use rail instead.

Businesses that conduct dangerous transport of goods will be penalised if they fail to do so safely and in compliance with national, state and territory laws.  Under the Australian Dangerous Goods Code, there are minimum levels of insurance cover required for each vehicle that carries a placard load with penalties in place for not complying with required insurance cover.

Does your current motor vehicle insurance cover provide you with sufficient protection for your own damage and for third party damage while transporting dangerous goods?  Company directors face personal legal liability, should there be openings that violate the law.

Motor vehicle insurance covers damage to property of third parties from the use of a registered motor vehicle but does not cover damage to freight consigned.  This type of cover is generally incorporated in a comprehensive motor vehicle insurance policy.  As an alternative, it can be purchased as a stand-alone cover with a limit of liability from $10,000,000 to $20,000,000.  This sum, however, can be reduced or eliminated with transport of dangerous goods.  Some insurers reduce the cover from $25,000 – $100,000 while some policies restore higher levels of cover at additional costs.  Most standard motor vehicle policies do not have sufficient cover without incurring additional costs.

Although the risk of accidents while transporting dangerous goods is high, several insurers offer insurance for transport of dangerous goods.

Talk to us regarding a policy that is specifically designed to provide cover liability for transport of packaged or bulk dangerous goods.

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