‘Commercial considerations’ transit insurance extension

From time to time, situations can arise where a haulage contractor feels obliged to settle a claim for loss or damage to a consignment even though, from a contractual perspective, they may not be liable. In this scenario, firms should consider arranging a ‘commercial considerations’ extension under their hauliers’ liability transit insurance policy.

Some of the benefits of arranging a ‘commercial considerations’ extension under a hauliers’ liability transit policy include:

• Commercial considerations extensions are typically significantly cheaper than arranging full responsibility cover.

• The insured is not normally required by the insurer to justify why he or she wishes to take advantage of the extension following loss or damage.

Drawbacks with a ‘commercial considerations’ extension include:

• Limits offered by insurers tend to be quite low (perhaps no more than £50,000 any one event, quite often substantially less).

• There tends to be a relatively low annual aggregate limit, meaning a possible problem could arise if a client has already elected to take advantage of the commercial considerations extension on one or two previous occasions.

It’s important to keep in mind the existence of a ‘commercial considerations’ extension is disclosed to a customer, under the terms of the extension, cover will normally be considered void.

To find our more, talk to your usual Towergate adviser.

HGV insurance from Towergate

We can offer tailored truck insurance with a series of options for drivers of single trucks or hauliers with fleets of up to five HGVs. Our cover ensures you have the right cover in place within a single policy, with no truck too big or too small. We can cover any truck ranging in size from 3.5t vehicles right through to trucks used to move abnormal loads.

Call for a quote on 0344 346 1418 or request an HGV insurance quote online. Alternatively, read more about our truck insurance and what we cover.

For larger vehicle fleets, we also offer fleet insurance.

All cover is subject to normal underwriting terms and conditions.

About the author

Chris North FCII is a respected industry leader with over 40 years' experience, who has worked in the insurance industry in a variety of roles, accumulating a wealth of knowledge. He is currently Technical Manager for Towergate's motor division, providing expertise on all matters relating to motor fleet insurance, in particular haulage and self-drive hire fleets.

This is a marketing article by Towergate Insurance.