The logistics industry of South Africa plays a pivotal role in moving goods and keeping the economy active. Up to 80% of goods in South Africa are moved using heavy-duty trucks. But the risks logistics providers are facing are beginning to unravel the country’s economic stability.
The Road Freight Association has pointed out that short-term losses are in the millions, but that the long-term effects of constant looting on all major routes in the country will have severe consequences. This is why it is important to reassess and compare your business insurance to ensure your portfolio will cover these increasing risks.
What Damages Are Fleet Owners in the Transport Industry Facing?
Automobile accident risks are no longer the leading peril truckers face. Whether you are a freight forwarder, fleet manager, or logistics company, these risks are becoming unavoidable.
1. Financial Losses Because of Vehicle Damage
Often, business vehicles get damaged during looting or robbery if they aren’t stolen altogether. This type of damage, accumulated over years, adds up to a massive financial impact for the fleet. In the past few years, heavy vehicles have become more of a target.
The ideal cover for this type of risk is business motor insurance.
2. Loss of and Damage to Goods in Transit
Commercial trucks are especially vulnerable to looting, and the goal is usually to take the content of the vehicle. This means the goods being transported are at a high risk of theft.
Without the right insurance cover, theft of these goods could lead to massive consequential damages for your company. You may hold contractual liability for the goods while they are being transported. This could mean you may need to pay compensation or foot a massive bill.
The best cover for this type of risk is goods-in-transit or stock-in-transit insurance.
3. Physical Damage and Bodily Injury to Truck Drivers
Does your heavy truck insurance cover injuries drivers sustain during crime events, such as looting or hi-jacking? Unfortunately, more drivers are being put at risk for injury or death due to the increasing rates of crime in the logistics industry.
To protect your company from this risk, getting the right form of liability insurance, such as public liability cover, is pivotal.
4. The Cost of Fleet Insurance
The more vulnerable your vehicles are to crime, the higher the risk profile of your fleet of vehicles. Your coverage amounts may increase because of a higher risk profile, and that could mean a higher commercial truck insurance cost monthly.
Affordable fleet insurance premiums still exist, and we can help you find them by offering comparative quotes for free. Just fill in the form on this page to get started.
Source: business live
Why Get Truck Business Insurance and Goods-in-Transit Cover?
Companies cannot control crime in the country and taking alternative routes can only get you so far. Security seals and guards cost extra money and give only a measure of safety. The best way to ensure your company remains financially stable and can stomach unforeseen losses is with the right insurance cover.
Without insurance for your commercial fleets, an event of injury or loss because of theft and looting can cost too much. The average losses many companies now face because of these crimes are in the millions. Public liability insurance, comprehensive motor cover, and stock-in-transit cover are essential for the continuation of logistics businesses, but also for the South African economy.
What Commercial Truck Coverage to Look for in the Insurance Policy You Choose?
– Coverage Limits
You can assess the extent of damages you have suffered so far and how much you are feasibly at risk of losing yearly. Then you can compare the policy’s coverage amounts and limits to ensure it will cover these amounts.
– Exclusions
All insurance policies contain exclusions. These are perils and events that aren’t included in your cover. It’s important to ensure looting is included in your cover. You can also check that other material risks are adequately covered and not excluded from cover before you sign the policy documents.
– Terms and Conditions
Does coverage through peak seasons change in the policy you are thinking of getting? How do coverage claims work? Are they straightforward, and what is required of the insured?
It’s important to understand what terms and conditions may apply to your cover, such as security or vehicle tracking, for example. This will also be in your policy wording.
How can companies protect commercial vehicles from the wide range of increasing risks in South Africa?
Getting comprehensive coverage from a reliable South African commercial vehicle insurer and additional coverage for other risks is your best bet. Commercial truck insurance policies don’t necessarily cover all the risks you will face.
If you already have insurance, it is a good idea to compare offers to find a policy that covers more and costs less. While you could possibly get a great deal and reduce claims administration by insuring commercial fleets, public liability, and insurance for goods in transit with one provider, you can often save on premiums by comparing each separately with different insurers.
The insurance company you choose should be reliable and able to pay out for your entire fleet if an unforeseen insured event like a natural disaster occurs. You don’t have to call all the commercial truck insurance companies in the country to compare offers.
How Can BusinessInsurance.co.za Help?
Businessinsurance.co.za was founded in 2008 and is an entirely South African-based business. We are passionate about increasing the resilience of South African businesses by helping them get the best coverage at the best prices. We have partnered with South Africa’s top insurers to help you find the best insurance product for your needs and budget.
Our system is designed to match your needs with the ideal insurer, and they will contact you with an obligation free quote. There is cover available for all types of vehicles and business needs. You can also get cover for legal liabilities such as third-party property damage or for the loss or damage of goods in transit.
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