Transport & Logistics Insurance
Insurance options for owner-drivers, fleet operators and logistics businesses moving goods across Australia.
Industry overview
Transport businesses depend on vehicles being on the road and freight arriving on time. A single accident or breakdown can affect the vehicle, the load and your commitments to customers.
Operators also carry obligations under chain of responsibility rules in heavy vehicle transport. Insurance is one part of managing these risks, alongside safe driving practices, fatigue management and well-maintained vehicles.
Common business risks
Vehicle accidents
Collisions can damage your own vehicle and third party property. Repair times for heavy vehicles can be long, which affects income.
Damage to goods in transit
Freight can be damaged by an accident, poor load restraint or weather. Customers may hold you responsible depending on your terms of carriage.
Vehicle downtime
When a prime mover or delivery van is off the road, contracts may still need to be met. Hiring a replacement can add cost quickly.
Theft of vehicles or cargo
Loaded trailers and vans parked overnight can be targeted. Depot security and parking arrangements play a part in this risk.
Liability at customer premises
Loading and unloading at warehouses and job sites can lead to property damage or injury to others.
Insurance commonly considered
Businesses in this sector often look at the following types of cover. What suits you depends on your operations, contracts and assets.
- Commercial Motor InsuranceTrucks, vans and fleets used to carry goods for reward usually need cover suited to commercial use.
- Public & Product Liability InsuranceOperators who load and unload at customer sites may face claims for injury or property damage to others.
- Business Interruption InsuranceA fire or other insured event at a depot could disrupt operations, and this cover may help with lost income, subject to policy terms.
- Commercial Property InsuranceDepots, workshops and warehouses holding stock and equipment are often insured under a property policy.
- Management Liability InsuranceDirectors of transport companies may consider this cover given the regulatory duties that apply to heavy vehicle operations.
Risk management considerations
- 1Keep vehicle maintenance records current and schedule servicing around known heavy-use periods.
- 2Use documented load restraint practices and train drivers on them.
- 3Maintain fatigue management and work diary records where heavy vehicle rules require them.
- 4Review your terms of carriage so you know where responsibility for goods sits.
- 5Secure depots and choose overnight parking with lighting and limited public access where possible.
- 6Keep an up-to-date list of vehicles, drivers and values so your broker can check your policy details are accurate.
Why broker support helps
Transport policies can include conditions on driver age, licence history, radius of operation and the types of goods carried. A broker can go through these details with you so the information given to insurers is accurate.
If a vehicle is involved in an incident, quick advice on next steps can help. A broker can assist you to lodge the claim and follow it up while you focus on keeping the rest of the fleet moving.
Frequently asked questions
Does commercial motor insurance cover the goods I carry?
Not always. Motor policies generally focus on the vehicle and liability to others, while cover for goods in transit may be a separate option or policy. A broker can explain how the different covers fit together for a particular operation.
What is chain of responsibility?
Chain of responsibility is a principle in heavy vehicle law that places safety duties on everyone in the supply chain, not only drivers. This can include schedulers, loaders and business owners. It is a legal obligation rather than an insurance product, so it is worth getting guidance from the regulator or a legal adviser.
Can I insure a whole fleet under one policy?
Many insurers offer fleet policies for businesses with several vehicles. Terms, eligibility and how individual vehicles are listed vary between insurers, so it is worth discussing your fleet size and use with a broker.
Is a hire vehicle covered if my truck is off the road?
Some policies may include a limited hire vehicle benefit after an insured event, while others offer it as an option or not at all. The policy wording sets out any limits and waiting periods.
Talk to us about insurance for your business.
Tell us how your business operates and we'll discuss the types of cover that may be relevant.