Will your insurance pay out if your load is stolen?

25 August 2022

Will your insurance pay out if your load is stolen? Many operators are finding themselves in situations where they are the victim of theft, and their insurers are refusing to pay out.

There has been a recent increase in enquiries from hauliers who have had their loads stolen, typically whilst their driver is asleep or on their rest break, and the wording of their insurance policy means that they are not covered.

Many insurance policies that we review, require loads to be under supervision and kept in constant physical surveillance. Drivers who are sleeping during their rest breaks either in laybys or service stations are clearly not able keep their load under constant close supervision. Therefore, insurers will take the view that they are not covered under their policy.

The wording of the policies can be strict and somewhat near impossible to comply with given the mandatory requirement for drivers to take breaks. However, it is the operator who risks being faced with a stolen load and no way of recouping any money through their insurers.

What can you do to prevent finding yourself in this situation?

Firstly, you need to read the wording of your insurance policy. Particularly, read the wording of the theft clause. It is imperative that you understand when your insurance provider will cover you in the event of theft and whether your drivers can in fact comply with the wording.

Furthermore, significant importance should be placed on ensuring that you utilise CCTV to protect your load. You may be under the impression that the service station where your driver has stopped to take their rest break is secure and equipped with CCTV. But is that CCTV in operation? Does it constantly cover your vehicle? If the answer is no, then you may not be protected under your insurance policy.

You should also implement any other security measures that can ensure compliance with the wording of your insurance policy and evidence that your loads are always safeguarded. It might turn out to be a small price to pay to ensure that you are covered by your insurance if your goods are stolen.

If you are unsure when your insurance policy covers you for theft and would like some assistance, then please contact a member of our commercial litigation team on 01254 828300. Find out more about us here.