Downtime & Loss of Use
Daily benefit payments while your HGV is off the road for covered repairs — keeping your cash flow intact when income stops.
✓ What It Covers
- ✓Daily benefit during vehicle repair period
- ✓Hire vehicle costs (alternative transport)
- ✓Fixed operating costs during downtime
- ✓Revenue loss for owner-operators
✗ What It Excludes
- ✗Scheduled maintenance downtime
- ✗Mechanical breakdown (unless insured event)
- ✗Driver incapacity (covered by personal accident)
- ✗Downtime beyond maximum benefit period
A working HGV generates revenue every day it runs. When it's off the road — for repairs after an accident, waiting for parts, or being assessed by a loss adjuster — that revenue stops. Fixed costs don't: finance repayments, lease obligations, insurance premiums, and staff costs continue whether the truck is running or not.
Downtime cover addresses this gap. It pays a daily benefit for each day your vehicle is out of service due to a covered insured event, allowing you to maintain cash flow and meet financial obligations while the repair process runs its course.
Why repairs take longer than expected
The road transport industry is experiencing significant delays in parts supply. Post-Covid supply chain disruption has meant that major components — engines, gearboxes, cab assemblies — for European trucks (Scania, DAF, MAN, Volvo) can take 8–20 weeks to arrive. Without downtime cover, an accident that requires major repairs can mean 3–5 months without revenue — an existential event for an owner-operator and a serious cash flow hit for any fleet.
Setting the right daily rate
Your downtime benefit should reflect your actual net daily revenue — total revenue less fuel, driver wages, and variable costs. Don't over-insure (premiums will be disproportionate) or under-insure (the benefit won't cover your obligations). Your accountant can help you calculate an accurate daily net revenue figure.
For owner-operators, the daily rate should be sufficient to cover the finance repayment on your vehicle, your insurance premiums, and your living expenses during the repair period. A starting point of $800–$1,500/day is typical for owner-operated artic operations, but your specific situation will dictate the appropriate figure.
The benefit period
Downtime policies have a maximum benefit period — the maximum number of days they'll pay. 90 days is common; 180 days is available for specialist vehicles. Given current parts delays, consider whether 90 days is adequate for your specific vehicle make and type, and request a longer benefit period if needed.
Frequently Asked Questions
How is the daily downtime benefit calculated?
You set the daily benefit amount when you take out the policy, up to the maximum the insurer will offer. The benefit should reflect your actual net daily revenue from the vehicle. Your insurer will pay this amount for each day the vehicle is genuinely off the road for covered repairs.
Does downtime cover pay if I'm off the road due to a breakdown rather than an accident?
Standard downtime cover pays when the vehicle is off the road due to an insured event — typically an accident or collision. Mechanical breakdown cover is a separate product. If you want protection against both accidents and breakdowns, you need both covers.
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