Insurance for the transport and logistics sector
What are the key risks in the transport and logistics industry?
Transport and logistics businesses face a broad range of risks depending on the area of operations they specialise in, but a shortage of skilled workers and work health and safety concerns are among the long standing risks facing all operators.
Newer risks are also emerging driven by operational changes such as the emergence of new technologies in the form of tracking, automation and
autonomous vehicles. Population growth and the associated rise in demand, congestion and infrastructure pressures, and environmental concerns linked to climate change, are also redefining the risk landscape for transport and logistics companies.
Who should consider insurance?
Whether you operate a large national fleet or are an owner-driver, and whether you store goods or only transport them, you should have a range of insurance covers to protect your workers, safety and commercial risks.
“Truck drivers have a 13-fold higher risk of dying at work than other Australian workers.”
(Monash University, Driving Health Study, 2018)
Did you know?
14.5%
Freight logistics accounts for around 14.5% of Australian GDP.
(The Chartered Institute of Logistics and Transport website, 2020)
4B
Each year 4 billion tonnes of freight is transported across Australia.
(National Freight and Supply Chain Strategy, 2019)
35%
A 35% increase in freight volumes is predicted across Australia between 2018
and 2040.
(National Freight and Supply Chain Strategy, 2019)
What insurance should you take out - and what can it cover?
In this sector, insurances fall into three broad categories – those that protect your commercial and business risks, your people and safety .
Commercial vehicle
Protects cars, trucks, buses, utes and other vehicles that you use in the day-to-day operations of your business.
Property
Protects your buildings, such as office facilities, and other premises, such as vehicle yards, from damage caused by events like fires, storms, explosions, falling trees or malicious damage.
Warehousing
Provides specialised coverage for businesses operating warehouse facilities (including cold storage), protecting against risks from property and stock damage to public liability.
Goods in transit
Protects your business against financial loss if goods are lost, damaged, or destroyed while off premises and in transit.
Management liability
Protects your management team if you’re a larger business in case you need to defend, settle or pay a compensation claim.
Cyber
Safeguards you and your business against expenses and legal costs if your website or other systems are hacked.
Business interruption
Covers the costs of operating your business, like paying staff and covering bills while you recover and rebuild.
Workers Compensation
Covers the cost of your employees’ wages, rehabilitation and medication if they become injured or sick through their work.
What usually isn't covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on the requirements of your business.
Case Study
Simon, an owner-operator truck driver, has several delivery contracts,including a contract with a large Hunter Valley winery to deliver wine orders to customers across New South Wales.
On one of his regular delivery runs transporting thousands of dollars of wine, he’s involved in an accident which results in damage to his truck and a complete loss of the wine on board, with the bottles shattering upon the impact.
Fortunately, Simon has commercial vehicle insurance which covers the damage to his truck and provides him with access to another vehicle while his truck is being repaired so that he can continue to operate his business. His goods in transit insurance also covers the cost of the wine.
FAQs
You might consider changing providers to get better rates, improved coverage, better customer service, or access to specialised policies that suit your evolving business needs.
Review your policy regularly, compare it with competitors’ offerings, and consult with an insurance professional to assess if your coverage aligns with your current business risks and needs.
Risks include potential coverage gaps, policy exclusions you might overlook, or losing loyalty benefits with your current insurer. So it is important to carefully review new policies to ensure they meet all your needs.
The process is usually fast once we have all the right paperwork, but it can vary depending on the complexity of your business and the type of coverage needed. This means it is best to be prepared and start looking before your existing insurance expires.
Some policies have cancellation fees or short-rate penalties. Check your policy or ask your current insurer about any potential fees before switching.
You’ll typically need to provide business details, claims history, financial information, and specifics about your operations, assets, and employees.
Coordinate the start date of your new policy with the end date of your old policy. We can help you minimise your exposure to risk when changing suppliers, but it is important that you start the process early.
An insurance broker or professional represents multiple insurance companies and works on your behalf to find the most suitable coverage. Direct insurers are individual companies that sell their own policies directly to businesses.
Brokers offer expertise, access to multiple insurers, personalised service, assistance with claims, and we can often negotiate better rates or coverage terms.
Brokers typically earn commissions from insurance companies. In most cases, you won’t pay directly; similar to a mortgage broker, they are paid by the insurers.
Often, yes. We have access to multiple insurers and can leverage our relationships to negotiate competitive rates, or have products that are not available to the public.
Look for someone with experience in your industry, good references, proper licensing, and a wide network of insurers. They will be your point of contact when something goes wrong, so also consider their communication style and responsiveness.
Generally, yes. Professionals like us typically manage most communications, including policy changes, claims, and renewals, acting as an intermediary between you and the insurer.
Yes, a good broker will explain complex terms, policy details, and coverage options in plain language to help you make informed decisions.
Your specific needs will depend on your industry and operations, so it is best to chat so we can guide you through the risks you may not be aware of. Common types of insurance include general liability, property, professional liability, workers’ compensation, cyber liability, and business interruption insurance.
Review your coverage annually at minimum, but it is also best practice to review when your business undergoes significant changes like expansion, new products/services, or changes in operations.
Not necessarily. Premiums depend on various factors. A new insurer might offer lower rates, especially if your business circumstances have changed favourably.
Yes, we can often help you bundle policies (like combining property and liability coverage) to get discounts and streamline your insurance management.
First, communicate your concerns to your insurance professional or the insurer directly. If issues persist, you can file a complaint or consider switching providers again.
Look beyond just the premium price. Compare coverage limits, deductibles, exclusions, and additional benefits. Consider the insurer’s financial stability and reputation for customer service as well. Most importantly, make sure you are comparing like-for-like coverage.