Losing one vehicle due to fire can be a costly and disruptive event. Losing a fleet of vehicles due to fire spreading to several vehicles parked close together could prove catastrophic. The loss of ten coaches, each parked one foot apart, in a fire on the 30th December in Tamworth is a reminder that fires of this nature do happen from time to time.
The insurance ramifications of losing several vehicles in a single event should not be under-estimated. If a fleet operator with a £1,000 each-and-every claim policy excess lost ten vehicles in the same fire, the total excess would be £10,000. For any firm, the impact of a multi-vehicle loss on claims experience will inevitably have a serious and detrimental impact on future motor fleet premiums.
Major transport operators running a very large fleet may choose to self-insure the ‘accidental damage’ motor fleet risk. For such firms, without an appropriately cautious back-stop arrangement, the consequences of a ten-vehicle loss could be particularly painful. An option to help such firms tackle the accumulation risk is to insure the trucks whilst parked up at their premises under their material damage policy.