Australia’s trucking industry is the backbone of our economy, but it’s increasingly operating in a high-risk environment. With severe weather events becoming more frequent and intense, truck operators are facing growing exposure to unexpected and devastating losses. Recent data from the Insurance Council of Australia (ICA) underscores just how vital it is for trucking businesses to have comprehensive, tailored insurance cover—and the right broker in their corner.
The growing impact of extreme weather
In the past 24 months alone, Australia has faced a staggering number of climate-related disasters. The ICA reports that weather-related insurance losses in 2023 alone surpassed $3.5 billion, driven by catastrophic flooding in Queensland and northern New South Wales, hailstorms in Victoria, and severe bushfire outbreaks in WA and this trend continues today.
For the trucking industry, this translates into real, tangible risks:
- Flood-damaged depots and warehouses
- Washed-out roads leading to delays and lost income
- Water-damaged freight and written-off trucks
- Business interruption that halts operations
One major insurer revealed that more than 65% of all heavy motor insurance claims in 2023 were weather-related, and average repair costs have increased by over 20% in the last two years due to inflation and supply chain issues.
In regional areas—where many trucking businesses are based—the impact is even greater. According to a 2024 Bureau of Meteorology report, extreme weather events are expected to increase in both frequency and intensity in coming years, with a higher risk of flash floods, high winds, and prolonged heatwaves, all of which can disrupt or damage operations.
The Insurance Gap: Are You Really Covered?
Despite these increasing risks, a surprising number of transport operators are underinsured or incorrectly insured. A recent survey of 500 SME transport companies across Australia found that:
- 42% were unaware whether their insurance covered weather-related business interruption
- 36% had outdated sums insured that did not reflect rising asset values
- 29% did not have flood cover at all—even if they operated in known flood zones
These gaps can be financially crippling in the event of a claim. For instance, a single flooded prime mover can lead to a total loss claim of $300,000 or more—not to mention the cost of replacing cargo, lost contracts, or repairing infrastructure.
Why a Good Insurance Broker Makes All the Difference
This is where a quality insurance broker—one who understands the trucking industry—can be the difference between recovery and ruin. A broker doesn’t just source a policy; they help assess risk, tailor cover to the operation’s specific needs, and provide expert claims support when it matters most.
The right broker will:
- Ensure flood, storm, and other weather perils are properly covered
- Advise on appropriate business interruption and downtime coverage
- Help keep sums insured updated in line with market value and inflation
- Advocate for you during the claims process to ensure fair outcomes
- Identify hidden exposures in contracts, leases, and third-party arrangements
A recent case study from Northern NSW saw a fleet operator lose five vehicles to flash flooding in late 2023. Thanks to proactive work by the team at AEI Insurance Broking Group months earlier—including a full coverage review and improved business interruption limits—the business was fully indemnified and back on the road within weeks, avoiding a financial catastrophe. This approach is commonplace for the team of specialists at AEI who have worked with the transport and logistics industry for over 50 years.
Final Word: Don’t Risk the Uninsurable
In an industry as exposed to the elements as road transport, “near enough” is not good enough when it comes to insurance. With weather risks escalating and claims costs rising, ensuring your insurance is current, comprehensive, and well-structured isn’t just smart—it’s essential.
If you’re unsure whether your policy is up to scratch, now is the time to review it. And if you don’t have a broker who knows the ins and outs of the trucking game, it might be time to find one who does.
