With global shortages worldwide, including timber and semi-conductors affecting the construction and car manufacturing industry, wait times for new vehicles have increased to almost six months due to the shortage. Ensuring you have the right insurance cover and additional add-ons is important.
Total car loss cover scenario
Suppose you were in a car accident and unfortunately, your car was considered a total loss, given the current shortage of vehicles in the new car market. In that case, it could take approximately 60-90 days to find a new vehicle, and some vans could take up to six months.
Given the current market condition for new cars, we recommend checking your current policy and seeing if you have car hire cover. The car hire extension could provide you with a vehicle as per the terms and conditions of the policy to extend and cover the cost of hiring a vehicle for a few weeks until the insurer makes a decision on your claim. It also provides you with a vehicle should you need one.
Contact your broker today if you want to add car hire cover to your policy or require a quotation.
Do you have the right level of cover?
As a business owner, you may be looking to save cost and reduce your insurance premiums by reducing your building sums insured, declared value or limits of liability. Before you make these types of decisions, it’s best to chat to your broker, as all policies have an underinsurance clause, which could work against you in the event of a claim. Given the global shortage in building supplies and timber, we want to ensure you’re fully insured for the full value if something happens to your property.
Additionally, we recommend you review your policy schedule and indemnity period, given the current shortage of building supplies, should you be insuring business interruption or loss of rent.
We recommend you consider increasing your business interruption/loss of rent sum insured and indemnity period to a minimum of 18 months. Increasing the indemnity period to 24 or 36 months is recommended in these circumstances. By increasing your indemnity period, you would be provided with an additional year or two years worth of business interruption or loss of rent if there were construction delays.
For a tailored quote and specialist advice, please get in touch with one of our commercial insurance advisors.
E info@whitbread.com.au
T 1300 424 627
This insight article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
