by Graham Poulton, Technical Director, Tysers Corporate & Private Clients.
We have many clients in the Plant Hire and Construction sector who have their own vehicles used to transport plant and materials. In almost all circumstances we arrange cover for those items under either a Plant ‘All Risks’ or a Contract Works insurance.
The problem arises when a company carries goods for others and in effect becomes a Haulage Contractor. At that time they become responsible for the load under Common Law, not only for loss or damage to those goods but also for any consequential losses arising from such loss or damage. Many loads are carried as a favour or to cover return journey costs but in taking on such work the risks of a third party claim have to be taken into consideration.
We have an option under our Plant Hirer’s scheme to provide property cover for Plant and Equipment carried for others but even this does not extend to include any consequential loss arising out of such loss or damage. For this reason we strongly recommend that our clients operate under formal terms and conditions such as those offered by the Road Haulage Association (RHA) or the Freight Transport Association (FTA).
Property sums insured can be discussed to suit client’s needs but more importantly the use of formal terms of carriage take away almost all responsibility for consequential loss claims.
Unfortunately for other Contractors there is generally no third party property damage extension available and a separate Goods In Transit policy tailored to their needs should be considered.
For more information about the insurance solutions we offer to the Plant Hire and Construction sector please visit our website.