Loss of use can bt taken care of
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INADEQUATE insurance can easily lead a haulier to lose his business. Let me tell you how that nearly happened to one operator; we will call him Alec.
He had one lorry, which he damaged badly in a skid; repairs took six weeks and this loss of use was not covered because there was no other party to claim against.
Alec had taken out comprehensive cover on his lorry and thought that was sufficient.
This incident put an idea into the head of Gordon Smart, who is a director in the firm of Roberts & Davies, an insurance broker based in Cambridgeshire. Gordon believed that there ought to be a kind of business continuation insurance available so that compensation would be payable to a haulier who found himself in a similar sort of position to that of Alec.
Gordon tried for a couple of years to get a scheme off the ground. He approached several insurance companies and underwriters without success until at long last he hit on a ray of hope. Certain underwriters at Lloyd's expressed an interest with the valued assistance of a firm of Lloyd's brokers, John Holman & Sons.
Intensive negotiations took place between the parties involved, and it was not long before the Hauliers' Loss of Use insurance policy was thrashed out and made available.
So what is on offer? Well, before going into details, let's consider what might happen if the nightmare comes true and your lorry or coach is off the road after an accident. Yes, you could hire — and tough luck if the cost bites into your profits. And, yes — you could transfer your loads or passengers to other operators. But tough luck if you never see your customers again.
Alternatively, you could sit back and watch television. Again, tough luck if such inaction means that your savings receive a jolt.
But now to the nitty-gritty — that is, a real alternative to this nightmare which might one day hit you, good driver though you may be. What is this loss of insurance all about?
Basically, 80 per cent of leasing charges or hire charges, are covered for your vehicle replacement, albeit temporarily, following accidental damage occurring anywhere in Great Britain. A significant point is that this cover applies irrespective of who is to blame for the accident. It is a truly "no fault" scheme and one which is already proving especially popular with the smaller businesses — those with, say, up to a dozen vehicles.
This insurance is very simple in concept and can be fixed up extremely quickly. Further — and this is most important — should there be an accident, there's a rapid claims turnaround. Another attractive feature is that no evidence of the proposer's insurance claims experience is required.
Now for the crunch! What about cost? Premiums range from £20 a year for a benefit of £100 a week for up to five weeks while the insured vehicle is off the 'sr\oad — or £30 annually for £150 per we Going higher, you could p £40 a year to get £200 a WE — or £80 a year for £400 week. The choice is yours but excluded are the first thr days of any loss. This is to hi in keeping down the cost of I scheme.
Any other exceptions? Y just a few. Vehicles which cz not be covered by the Haulie Loss of Use policy are: • Those not covered on a co prehensive insurance basis.
• Those in transit outside t UK.
Additionally, also exclud are: • Drivers under the age of ; unless specifically accepted the underwriters on applit tion.
• Those drivers who do r possess an hgv or psv licencE If you are interested in r having a nightmare should o of your vehicles be off the ro following an accident, simr get in touch with Gordi Smart at 20 Pratt Street, S ham, Ely, Cambridgeshire Cl 5BH, phone 0353 721191.
• John C. Vann