Tysers insurance looks at the carriage of third parties goods and equipment in our latest expert opinion piece.
Tysers have clients in the Plant Hire and Construction sector who have their own vehicles used to transport plant and materials and in almost all circumstances cover for those items falls under either a Plant All Risks or a Contract Works insurance.
The problem arises when the 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.
There are various options under a Plant Hirers 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 Tysers advise that those considering this operate under formal terms and conditions such as those offered by the RHA or the FTA.
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.
Article supplied by Tysers