Construction vehicles like excavators, bulldozers, compactors and mixers are the heart and soul of your construction business.
You need to keep them in great shape to manage your workflow. It is also true that these vehicles are typically expensive to purchase and maintain.
On top of that, it is important to get your construction vehicles suitably insured. Most construction vehicles are used in high-risk environments that can lead to breakdowns and accidents. They are also vulnerable to theft.
In addition to taking all these things into account whilst maintaining suitable cover, it is also important to save on your construction Fleet insurance. Frankly speaking, it is one of the many “costs” you need to control.
Here are some ways to save on suitable insurance cost of your construction fleet.
Table of Contents
Identify The Risks:
What do you fear? This is a straightforward way to identify the potential risks associated with your construction vehicles.
Maybe you are not sure if your current Small truck insurance will cover you for all your risks. For example, you may worry about whether your excavators are covered for theft on a construction site that is not secure.
All you need to do is note down your fears. Ask your insurer if they can cover such risks. It would be great if they can cover most of the risks, if not all. Most importantly, it’s vital you are aware of what is and isn’t covered.
Hire Skilled And “Clean” Drivers:
One of the most important factors that impacts your insurance rate is the degree of risk. The construction occupation involves several risks to people, property, and vehicles.
While accidents occur frequently in the industry you can lower the cost of your construction fleet insurance by hiring skilled drivers with a clean record wherever possible.
A driver with a poor driving record (which includes accidents and driving offences) can increase your insurance rate. Check driving records before hiring your drivers. This could help you avoid taking on bad drivers who might cost you more in insurance and other damages. It will also be useful to provide training to your existing drivers to help them understand the importance of road safety.
Be Specific About Your Coverage:
It is essential to consider the coverage you require.
For example, some insurers can allow you to rent a similar construction vehicle to use while you are getting the damaged one repaired. However, if you already have a backup vehicle, you may prefer to trim that extra from the cover.
Be Serious About The Safety Of Your Vehicles:
The level of security that you provide for your construction vehicle overnight can influence the insurance rate—especially for insuring against theft and vandalism. Overnight parking in a garage or having a secure parking spot can help reduce your rates.
Installing security devices to your construction vehicles can help reduce premiums with some insurers.
Raise Your Deductibles:
Deductibles are the “out of pocket” amount you agree to pay while demanding for a claim. If you agree to pay a higher deductible, or excess, the premiums might be reduced by the insurer.
However, there is a risk with increasing your deductibles, as you will have to fund this amount if you have a claim.
Look For The Quotes:
Opt for a broker to compare price and cover of different insurers. When it comes to lowering the price, it never hurts to negotiate, and a good commercial vehicle insurance broker can do this for you.
Bottom Line:
So you now appreciate how you can lower the rate of your construction fleet insurance. Whether it’s an excavator or a road roller, you know they are an important part of your construction business.
Any time they are not available for use, due to an accident or breakdown, creates hassles and costs.
It is important to keep them insured. And it’s a good thing you may be able to lower the rate of suitable cover by using several methods.
What do you think? Let us know by commenting below!
Disclaimer:
*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.
Author Bio:
Romit Malhotra is the brand representative of Smart Business Insurance, a leading Australian insurance broker. A big foodie, he loves to travel the world. Also, a diligent businessman, Romit likes to pen down his thoughts on related topics whenever he finds some free time.
