Many haulage businesses focus on finding competitive insurance premiums, but one of the biggest risks is not necessarily being uninsured—it's being underinsured.

If your insurance limits no longer reflect your business, you could find yourself facing a significant financial shortfall following a claim.

What Is Underinsurance?

Underinsurance occurs when the level of cover purchased is lower than the value of the risk being insured.

This can affect several areas of a haulage business, including:

• Vehicle values
• Goods in Transit limits
• Business interruption
• Public Liability
• Employers' Liability
• Plant and equipment

As businesses grow, it's easy for insurance arrangements to fall behind.

Goods in Transit Cover

One of the most common examples is Goods in Transit Insurance.

Perhaps your business originally carried loads worth up to £25,000.

A few years later you may be transporting loads worth £75,000 or even £100,000 without increasing your insurance limit.

If a vehicle is involved in a serious accident or a load is stolen, the policy may only respond up to the insured limit.

Reviewing your cover regularly helps ensure it continues to reflect the contracts you undertake.

Vehicle Values

Commercial vehicle prices have increased significantly in recent years.

If replacement costs have risen since your policy was first arranged, it's worth checking that your insurer has accurate vehicle details and values.

Keeping this information up to date can help avoid unnecessary complications following a claim.

Business Growth

Many operators gradually expand their businesses by:

• Purchasing additional vehicles
• Employing more drivers
• Entering new markets
• Carrying higher-value goods
• Taking on larger customer contracts

Insurance should evolve alongside your business.

What was appropriate several years ago may no longer reflect the risks you face today.

Contract Requirements

Many customers specify minimum insurance requirements before awarding work.

This may include:

• Higher Goods in Transit limits
• Public Liability insurance
• Employers' Liability insurance
• European cover
• Specific contractual conditions

Reviewing these requirements before renewing your insurance can help ensure you remain compliant.

Review Your Insurance Regularly

Rather than waiting until renewal, it makes sense to review your insurance whenever your business changes.

Questions to ask include:

• Have we purchased additional vehicles?
• Are we carrying different goods?
• Have load values increased?
• Have we started working for new customers?
• Are we undertaking European work?
• Have we expanded our fleet?

Small changes over time can have a significant impact on your insurance requirements.

Specialist Advice Makes a Difference

Every haulage business is different.

At Avis Insurance, we work with owner drivers, fleet operators and specialist haulage businesses across the UK, helping ensure insurance keeps pace with changing business needs.

If you're unsure whether your current cover still reflects the work you undertake, our experienced team will be happy to review your requirements and provide straightforward, professional advice.

Call 01628 662666 to speak to one of our haulage insurance specialists today.