The Australian insurance market continues to offer more favourable conditions for well managed heavy equipment & fleet markets, with broader coverage and premium reductions of between 5 to 10 per cent available for risk managed, claims free policies.
Whilst cranes, mining and underground equipment still attract higher rates, returning capacity to the market both locally and overseas, is slowly driving more competitive pricing.
Why risk management matters
Investing in risk management isn’t just about reducing claims – it is considered when pricing premiums. To secure the best terms, Bellrock recommends fleet owners should continue to focus on:
- GPS tracking & remote shut-down technologies.
- Front and rear cameras for road units.
- Operator training programs.
- Routine equipment maintenance.
- Securing assets against theft and damage overnight.
- Ensure all operators / drivers hold appropriate licenses and certification.
Financial losses & hire terms
Lengthy repair times due to supply chain delays can lead to significant financial losses. Fleet owners must review their insurance programme to account for business interruption and increased costs of working. Furthermore, understanding hire agreements is crucial as unclear terms can expose businesses to unexpected liabilities when renting or leasing equipment. It also remains vital that when offering dry hire of equipment, clients ensure their customers maintain and hold suitable coverage.
Preventing underinsurance
Inflation and rising costs are affecting market values and replacement costs, however, the effects of this are starting to slow. Fleet owners should ensure that the sums insured align with policy settlement terms. This remains essential to avoid financial shortfalls and underinsurance.
For further accuracy, as well as peace of mind, engaging an independent valuer is recommended. Please contact your Bellrock advisor to understand how our panel of 3rd party experts can assist in this regard and see our article here.
Optimising your fleet insurance strategy
To protect your business, fleet owners should:
- Ensure valuations reflect policy settlement terms.
- Understand hired-in plant exposures.
- Consider supply chain disruptions and indemnity limits.
- Evaluate environmental risks (e.g. underground use / use over body of water).
- Explore alternative retention structures, such as higher excesses or aggregate deductibles.
With the market continuing to soften, fleet owners have the opportunity to secure enhanced policy conditions and more favourable premiums. Now is the time to review insurance programmes and work closely with your risk advisor to ensure comprehensive protection.
Continue reading our full range of market updates:
- Insurance Market Overview: July 2025
- Property
- Commercial General Liability
- Motor
- Contractors Plant & Equipment
- Renewable Energy
- Strata
- Claims
- Workplace Risk
- Executive & Professional Risk
- Construction
