Commercial Vehicle Insurance

COMMERCIAL VEHICLE

Commercial vehicle insurance should be managed based on operational exposure — not treated like private car insurance.

This section is suitable for businesses operating fewer than 10 vehicles, where policies are placed individually rather than under a fleet arrangement. Individual placement may offer greater administrative flexibility and clearer underwriting assessment per vehicle.

We advise SMEs, contractors, logistics operators, and service businesses on structured placement and renewal positioning across vans, lorries, tippers, lorries with cranes, prime movers, and other specialised vehicles.

Suitable For:

Companies operating vans or pick-ups
Businesses with small lorry fleets (3–5 ton and above)
Construction and project-based operators
Logistics and delivery businesses
Companies with multiple drivers or moderate driver turnover
Operators using lorries with cranes or mounted equipment
Businesses engaged in hire & reward activities (subject to underwriting criteria)

Operational & Underwriting Considerations:

Commercial motor differs materially from private car insurance. Insurers typically assess:

Nature of business and occupation
Type and configuration of vehicle (van, lorry, lorry with crane, tipper, prime mover, etc.)
Usage classification (own goods vs hire & reward)
Driver age, licence class, and driving experience
Claims history and accident frequency
Operating routes and exposure environment

Where usage involves hire & reward, hazardous materials, or specialised equipment, underwriting criteria may be more stringent and additional terms may apply.

Proper disclosure of business activity, vehicle usage, and driver allocation is critical to ensure coverage alignment and renewal stability.

Practical Scenarios

Driver-Specific Risk on One Vehicle

A company operating several vehicles has one driver with prior accident history. Rather than allowing underwriting concerns to affect all vehicles uniformly, we review:

Driver declaration structure
Vehicle-driver allocation
Excess positioning
Alternative insurer appetite where appropriate

The objective is to contain underwriting impact to the affected unit where feasible.

Renewal Adjustment After a Major Claim

A single commercial vehicle incurs a high-quantum accident. At renewal, revised terms may include higher premium or excess adjustments.

We review claims documentation, repair scope, and risk presentation before engaging insurers. Where appropriate, alternative placement options may be explored subject to underwriting acceptance.

Prime Movers & Tippers (Up to 100 Tons)

Heavy commercial vehicles such as prime movers and tippers are typically underwritten under more stringent criteria due to load exposure, accident severity potential, and operational risk profile.

We support operators requiring structured placement for:

Prime movers (up to 100 tons)
Tippers
Construction and transport-based heavy vehicles

Where eligibility criteria are met, structured policy arrangements may be available, including:

Defined excess structure
Guaranteed renewal option (subject to loss performance parameters)
2-year rate stability arrangement
Clear underwriting eligibility criteria

Eligibility typically requires:

Commercial use only
Acceptable claims experience (no loss or loss below defined thresholds)
Nature of business within construction, transportation, freight forwarding, rental or related activities

Additional loadings may apply for transportation of hazardous materials.

Such policy arrangements are subject to underwriting review and acceptance.

Our Structured Approach

We support clients through:

Clear driver declaration advisory
Proper usage classification (including hire & reward disclosure where applicable)
Excess positioning strategy (balancing premium vs retained exposure)
Early renewal review (6–8 weeks prior to expiry)
Insurer comparison and negotiation where appropriate

Our objective is to ensure each vehicle is correctly structured and aligned with operational reality — reducing unexpected renewal disruption.

Claims & Renewal Discipline

Commercial vehicle portfolios require:

Claims documentation consistency
Early renewal preparation (6–8 weeks prior)
Structured insurer communication
Portfolio-wide rather than vehicle-by-vehicle discussion

Reactive renewals often lead to restrictive terms. Structured engagement reduces unpredictability.

Speak to a Motor Specialist

If you operate commercial vehicles and would like a structured renewal review or portfolio discussion, contact TIB for the next steps. Secure your operations, build consumer trust, and focus on delivering quality services with the confidence that you are protected.

Taking Care Of All Your Risk Management Needs.

Started in the 1960s as an insurance agency, Tan Insurance Brokers is led by a team of extremely experienced and qualified risk managers and advisors and has partnered numerous local and global enterprises for over 5 decades.

At TIB, you always come first. We’ve built our reputation on decades of putting customers first and our experts are always on hand to deliver personalised service and support.