BUSINESS
REAPING THE BENEFITS OF
SPECIALIST VEHICLE COVER
With specialist vehicle cover, all too often, true replacement costs are not factored in accurately and insurance cover can come up
short — but this is easy to avoid.
By Tarren Bolton
While specialist ‘heavy equipment’ vehicles like tractors, harvesters, and excavators may require
all-risk motor cover like regular cars do, there are unique elements to making sure such vehicles
are properly covered by your insurer.
T
hese vehicles generally attract
cheaper premiums than cars do.
Bertus Visser, chief executive of
distribution for PSG Insure, says the
reason for this is that insurers find there
to be less third-party risk for specialist
vehicles like these, as they generally do
not travel on main roads and therefore
have reduced regular contact with
other drivers and vehicles, which in turn
for insurers means less likelihood of
accidents occurring. “But despite this,
there are some important aspects to
review to ensure your specialist vehicle
cover is on track,” says Visser.
“It is essential to have third-party
liability cover in place, and not to reduce
it in the hopes of an even cheaper
20
MARCH 2019
premium,” adds Visser. He explains that
you may need to travel on a normal road
at some point with that vehicle, which
brings your driver into contact with
third parties. Also, and very importantly,
third-party liability cover protects you
should something happen on site — or
if someone tries to claim for damages
against you because of your vehicle.
Sowing the right seeds
Expensive equipment can be very
difficult — if not impossible — for you
to replace if your insurance cover is
insufficient. You can avoid this by simply
supplying the correct information. It is
essential to conduct a comprehensive
risk analysis on every one of your
assets, fully disclosing what they are
used for, so that any special insurance
considerations can be factored in by
your adviser and updated with your
insurer.
All too often, true replacement costs
are not factored in accurately, and
insurance cover can come up short —
but this is easy to avoid. An example
is ignoring your insurer’s assessment
(and required amendments to your
cover, if any), as this could result in
underinsurance. It is your responsibility
to get the correct value and supply this
figure to your insurer, but your insurer
can also assist in appointing someone
to value your goods, if you are not sure
where to go.
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