Business or commercial insurance is a specific category of insurance plans that protects business owners from potential risks. Many commercial vehicle insurance policies and business coverage plans are available in the market, particularly for motor fleet operators.
Here, we will solely focus on the specific insurance types that can provide necessary protection to entrepreneurs and business founders who manage a commercial fleet of JCBs.
Types of Business Insurance You Can Have to Operate a Fleet of JCB Smoothly
Known for their strength and versatility, JCBs are widely used in construction projects, handling tasks like removing waste, demolishing structures, and building roads and railways. Businesses using JCBs can leverage multiple insurance plans to manage their potential financial risks associated with JCB usage.
Below, we have included 5 common provisions that offer complete protection during the operation of this expensive machinery.
- Commercial Vehicle Insurance/Backhoe Loader Insurance
JCBs are heavy construction machines that draw substantial capital investment from businesses. Thus, it is highly recommended that businesses own a comprehensive commercial vehicle insurance policy to ensure maximum attainable financial coverage. These plans are surprisingly affordable and offer business owners complete peace of mind.
Having a backhoe loader policy shields your business from unexpected losses. These plans comprise legal liability coverage and special deductibles, which results in even lower premiums.
Under commercial JCB insurance, you can expect:
- Protection from damages inflicted on your heavy-duty vehicle because of an accident
- Any possible damages arising out of theft
- Losses to the machinery due to a breakout of fire
- Coverage for personal injuries or death of the vehicle’s driver
- Coverage of natural disasters
- Any potential third-party losses caused while operating the insured JCB
Furthermore, even if your JCB breaks down unexpectedly while working, this business vehicle insurance can help cover the necessary towing expenses.
- Liability Insurance
Unlike comprehensive coverage plans, liability-only policies indemnify you only when you are legally liable for damages to another person’s property or bodily injury. As per the law, you must have a liability-only policy compulsorily to cover potential accidental damages to third parties while operating JCBs.
Here’s a typical breakdown of compensation scales for liability-only insurance plans:
| Nature of Loss | Compensation Scale Borne by the Insurer |
| Death | 100% |
| Loss of both limbs or eyesight | 100% |
| Permanent disablement due to an accident involving the insured JCB | 100% |
| Loss of one limb or vision of one eye | 50% |
To successfully claim the insured amount, you have to ensure the following points:
- The owner-driver of the JCB has to be registered legally as the owner of the insured JCB.
- The policy must bear the name of the owner-driver.
- The driver must hold a valid driving licence and not be intoxicated while operating the JCB.
For error-free claims, go through the ‘“Limitations as to Use’ section before purchasing a liability-only business vehicle insurance policy.
- Workmen Compensation Insurance
Frequently termed worker’s or employee’s compensation insurance, this scheme covers losses incurred by any business when its employees suffer serious injuries. Obtaining this coverage plan for added protection can be a game-changer for your JCB business.
Although all preventive steps are followed under professional guidance, workplace mishaps can sometimes occur. So, consider having worker’s compensation insurance as it ensures fair compensation for the medical expenses of any affected worker, who could otherwise sue your business and result in significant costs.
- Marine Cargo Insurance
Inland marine insurance plans ensure sufficient coverage for businesses against potential cargo damage during transit. It primarily protects your JCB business from costs that can happen from weather damage, collisions, or strikes.
However, several clauses can deny coverage under the following instances:
- Wilful Misconduct: If the insured JCB is proven to have been used in wilful misconduct, the insurer does not pay for its damages.
- Insufficiency of Operational Preparation: Certain preparations and precautions are quite obvious for protecting any commercial vessel during transit. If the insurer finds that such steps were skipped before an accident occurs, claims under cargo insurance may be denied.
- Ordinary Expenses: Your business’s costs incurred due to the JCB’s regular wear and tear are not covered under cargo insurance. Some examples are insignificant machine volume loss or leakage from internal components.
- War Like Crisis: Neither cargo insurance nor any other type of insurance covers commercial vehicle damages caused by war, rebellion, or revolution.
- Equipment Breakdown Insurance
As a smart and well-aware JCB fleet owner, you can mindfully protect your business with popular machinery breakdown coverage policies from top insurers. These tailored insurance plans cover sudden physical damage to insured business assets, ensuring their swift replacement or repair.
For this reason, mainly, supporting compulsory liability-only commercial vehicle insurance with this policy is sensible, considering JCB operators use these excavators daily, raising the risk of sudden breakdowns.
You can safeguard your JCBs by investing in one or more insurance plans outlined above. While owning a third-party liability commercial insurance policy remains a legal requirement, all these plans help you navigate high, unexpected costs and smoothly handle accidental events that could otherwise lead to far more serious consequences.
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