Christmas is coming and land or road trains have seen an increase in popularity for seasonal events during both December and the summer months. If you have a road train, or other vehicles that require seasonal cover, paying for an annual policy can seem expensive. Instead, temporary insurance and laid-up cover for your vehicle can be a wise choice.
When looking for an insurance policy that’s flexible, most good insurance brokers should be able to tailor-make a policy that is right for your business. At Tradex, we specialise in some of the more unusual modes of transport, including amphibian vehicles that travel on both land and water.
Here are some pointers you may want to consider when looking at seasonal cover for your road train, aquaduck or other wheel-based vehicles.
Flexible Motor Trade Insurance
As with all vehicles, you will need some form of motor trade insurance. If you are taking fares as part of your road-train business, then it is likely this will be taxi insurance and possibly fleet insurance if you own several vehicles. With all types of cover, you will need to choose between third party, third party, fire and theft or comprehensive car insurance to cover you should you damage other vehicles, or your own.
As there is likely to be a seasonal element to your business, with busy times during the festive season and summer months, always look for a policy that can offer laid-up cover. This means keeping your vehicle off-road or having a Statutory Off-Road Notification (SORN).
Most insurers will ask you to make sure your vehicle or fleet is kept in a garage, parked on your drive or stored in a secure building. Whilst it’s in storage, it’s best to insure your vehicle or fleet with a laid-up policy including Accidental Damage, Fire and Theft.
If you are thinking of taking your vehicle on the road, you will need a Vehicle Special Order from the Vehicle Certification Agency. This will allow you to drive your vehicle along public highways at no more than 10 mph. It might not please other road users, but it will prevent your insurance being invalidated in case of an accident.
Seasonal Short-term Liability
As you will be carrying passengers and possibly taking on short-term employees, having liability cover is essential. Seasonal short-term liability will insure you against injury and personal accidents, whilst saving on the costs of an annual insurance policy. The following should be considered when chatting to your broker:
Public Liability Insurance: This will make sure you are covered in case of compensation claims against you from members of the public, including injury or damage. This could include clients, customers, suppliers and passers-by. If you were to have a slippery floor and a customer were to fall and injure themselves, for example, they may sue. Public liability insurance would cover the legal costs to fight or settle the claim.
As a seasonal business, public liability insurance can be taken out to cover the weeks or months in which you are operating. Most event organisers will only use businesses that have public liability insurance of at least £5 million. However, do check with event organisers.
Employers Liability Insurance: Whether full-time, part-time or casual employees, you are responsible for their welfare whilst working with you. If they were to suffer an accident due to your lack of due diligence, you could find a claim against you. Make sure your insurance policy is updated as you take on more employees to prevent inadequate cover. Again, having a short-term employers liability insurance to suit the days of work can keep your premiums down.
Cancellation Provision: The festive season is a busy time and you could be left juggling many events in a week. You can’t prevent unforeseen circumstances such as events being cancelled, adverse weather conditions or equipment issues. If you have to cancel, it is likely the venue will pursue you for at least some of the money dependent on how much notice you give. You may also be out of pocket if an event is cancelled and need to recoup some costs from your client. Talk to your insurance broker about Events Cancellation Insurance to make sure you are covered
It’s probable that your passenger-carrying vehicle has had some modification. Make sure that your broker is aware before you finalise any seasonal insurance cover so the policy can be directly suitable for your particular needs. An Aquaduck will need completely different cover, such as arranging special marine indemnity, from a road train than remains on dry land.
Your Quick Checklist
What to do before taking out a motor trade insurance policy for your road train:
- Do an initial risk assessment to make sure you will have adequate cover for the event.
- Make sure your broker is able to offer mid-term adjustments, including adding employers’ liability cover mid-term for full and part-time employees so you have flexibility as your business expands.
- Ensure you are insured correctly with an adequate level of cover for passengers and your employees.
- Put in place the required Vehicle Special Order (if operating on the public highway) and operate within the parameters of the Land Train operational legislation.
For more information on short-term motor trade insurance please contact Tradex on 0333 313 1111