Risk Exposures and Insurance for Motor Vehicles (Private/Business) and Commercial Fleets
Due to government enforced lockdowns as a result of the COVID-19 pandemic, the Australian economy has contracted. Consequently, many domestic businesses and industries have closed or significantly reduced operations due to a decline in demand for goods and services. Whilst this is the case for some industries, there has been a rapid increase in demand for home deliveries and food supplies.
Individuals with private or business motor vehicles and organisations with commercial fleets should be aware of the new exposures which have emerged as a result of the pandemic. Consideration should be given to implementing and/or improving existing risk management controls to reduce impacts to motor vehicle assets.
Reduced Vehicle Utilisation
Organisations operating commercial fleets who are experiencing severely reduced vehicle usage may be exposed to:
- Accumulation exposures resulting from the concentration of idle vehicles parked in one location.
- Security risks where many fleet vehicles cannot be parked securely on business premises.
- Security of stock items held within idle vehicles parked off site.
- Degradation of fuel in idle vehicles which may lead to engine damage.
- Natural perils such as bushfires, hail, flood or storms can cause damage to idle vehicles parked off site.
Increased Vehicle Utilisation
- Increased usage of vehicles which can also elevate accident risk exposure.
- Hygiene concerns where vehicles are continuously utilised by a number of drivers.
Global Impacts to Australian Drivers
The current pandemic has impacted on the global supply chain for vehicle parts. Where parts are required from overseas suppliers have been adversely affected by the pandemic, this in-turn can result in accident repairs and maintenance services being severely compromised through major delays.
- Speak to Bellrock about assessing your current risks in this environment.
- Ensure your coverage is adequate from the risks that may have emerged from this pandemic, having regard to your fleet.
- Vehicles that are not being used should be kept in a secure location.
- Ensure ongoing inspection, servicing and maintenance of your vehicles.
- Ascertain whether opportunities exist for premium reductions as a result the current risk environment, they may do, particularly where vehicle usage has reduced.