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‘Commercial considerations’ transit insurance extension

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Chris North FCII
Commercial Vehicle Insurance Technical Manager, read more

2 minutes

Written: January 22, 2016

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Unsure on the benefits and limitations associated with the 'commercial considerations' transit insurance extension? Here's why it's worth considering.

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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 Everywhen adviser.

HGV insurance from Everywhen

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.

chris-north.jpg

Chris North FCII

Commercial Vehicle Insurance Technical Manager

Chris 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 a longstanding Fellow of the Chartered Insurance Institute (FCII).

Chris 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 a longstanding Fellow of the Chartered Insurance Institute (FCII). He is currently Technical Manager for Everywhen's motor division, providing expertise on all matters relating to motor fleet insurance, in particular haulage and self-drive hire fleets.

Chris is responsible for providing this specialist team with technical advice, not only about the usual motor, liability, property and goods in transit covers, but also increasingly crucial covers such as directors’ and officers’ liability insurance and cyber threat insurance. His role also includes bringing forwards new initiatives for transport-related businesses, in particular those of a risk management nature given the importance Everywhen places on the maxim that ‘prevention is better than cure’.

Everywhen combines regional care with national reach, deep sector knowledge and strong insurer relationships to deliver tailored solutions across 55+ schemes. We help our clients navigate everyday and emerging risks with confidence, always and at all times.

This is a marketing article by Everywhen.