Downtime cover – essential protection for Aussie trucking

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When trucks stop, costs soar. Discover how downtime cover protects the bottom line

THE ARITHMETIC of Australia’s transport industry is unforgiving. Every morning, thousands of heavy vehicles pull out of depots across the continent, carrying the goods that keep the economy moving. But if one of those trucks suffers a misadventure, the calculations shift dramatically. Within hours, what began as a fender bender becomes a financial crisis. Each day that a truck sits idle costs its operator lost earnings. With the average heavy vehicle repair typically taking several weeks, a single accident can be prohibitively expensive – before factoring in contract penalties and

GT Insurance is an award-winning specialist underwriting agency that has been catering to the needs of fleet and heavy vehicle operators for over 25 years. Fully backed by Allianz Australia Insurance, the company merged with AM&T in early 2023, creating an even more diverse underwriting agency with specialised coverage across the motor and machinery, marine and transit sectors. GT retains a strong local presence in metro and regional markets throughout Australia. This allows the agency to move quickly for its brokers and their customers at times when they need it most. Our relationship-driven approach consistently earns GT recognition for its strength of relationships, quality of solutions, and claims and customer service excellence.

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The true cost of truck downtime

Several weeks per incident

Average repair time for a heavy vehicle

“Online lodgement … helps expedite the claims management process and contributes to getting our customers back on the road sooner”

Angela Stevens, GT Insurance

reputational damage. For an industry already operating on razor-thin margins, these losses are business-threatening. “Downtime costs our customers,” says Angela Stevens, national claims manager at GT Insurance. “This is why we encourage online lodgement, which helps expedite the claims management process and contributes to getting our customers back on the road sooner.” As economic pressures mount and repair times lengthen, traditional insurance is no longer enough to protect transport operators from the true cost of accidents. GT Insurance’s downtime cover and Transport Package are reshaping how the industry manages risk, offering financial lifelines that keep businesses afloat when trucks are idle. In today’s unforgiving environment, comprehensive protection is fast becoming essential infrastructure – critical not just for survival but for securing a competitive edge as Australia’s freight demand continues to grow.

Traditional commercial vehicle insurance covers such things as collision damage, theft and third-party liability. But this approach leaves a glaring gap in protection: while insurers will pay to repair or replace a damaged truck, they typically won’t compensate for the income that truck would have generated while operational. This blind spot becomes particularly costly when repairs extend beyond a few days, as they increasingly do in today’s complex supply chain environment. What begins as an operational challenge quickly evolves into a liquidity crisis, especially when multiple vehicles are affected or when smaller operators lack the financial reserves to weather extended downtime. Rising prices add to the stakes. Fuel costs have surged, driver shortages have intensified wage pressures, and compliance requirements have grown more stringent. Global supply chain disruptions have made parts harder to source and more expensive when available.

These pressures have fundamentally altered the risk profile of transport operations. Where operators once might have absorbed the cost of a truck being off the road, today’s economic environment makes such losses potentially catastrophic. Finance payments continue regardless of whether a truck is earning revenue. Driver wages must still be paid to retain skilled staff. Fixed costs like depot rent and insurance premiums don’t pause while repairs are underway.

According to Robyn Watkins, underwriting services manager at GT Insurance, market adoption is accelerating. “More brokers are selecting downtime cover for their customers, recognising the need to protect them against the cost of being off the road when disaster strikes.” This shift reflects growing sophistication in how transport operators think about risk – moving beyond just the cost of repairing physical damage to recognising that business interruption often represents the larger threat.

“By consolidating motor, downtime, liability and carriers’ cover, we’ve created a solution that reflects how operators actually run their business and where their real exposures lie”

Ben Briscoe, GT Insurance

For many operators, the question has shifted from whether they can afford comprehensive coverage to whether they can afford to operate without it. Australia moves on trucks, and demand for road transport is expected to grow by 25% over the next two decades, according to the Australian government’s Department of Infrastructure, Transport, Regional Development,

Communications and the Arts. This growth promises opportunity, but it also amplifies the stakes when things go wrong.

Orange toy truck model sits on a pile of coins

The insurance gap nobody talks about

The new mathematics of risk

Published 07 Oct 2025

Lost earnings plus ongoing expenses (finance payments, driver wages, depot rent, insurance premiums)

Daily cost of an idle truck

Most operators run on razor-thin margins, making even short periods of downtime potentially catastrophic

Industry margin pressure

Traditional policies rarely cover lost income during repairs, leaving operators exposed to liquidity crises

Insurance gap

Source: GT Insurance

Source: Australian Government (ITRDCA) Review of the National Freight and Supply Chain Strategy, May 2024

+25%

Projected demand for road transport over next two decades

GT Insurance’s downtime insurance addresses this vulnerability by providing a daily benefit when a vehicle is off the road due to an insured event. Rather than leaving operators to manage the financial impact of lost earnings alone, this coverage provides predictable income to offset the gap – covering finance payments, driver wages or keeping the cash flow steady – while undergoing repairs. The concept is straightforward, but its impact on business resilience is profound. Operators can maintain financial obligations, retain their workforces and preserve customer relationships even when their primary assets are temporarily unavailable.

Downtime insurance: filling the gap

Transport businesses face risks that extend far beyond vehicle damage. Third-party property claims can arise from accidents involving other vehicles or infrastructure. Liability for damage to customers’ goods represents another significant exposure. These specialised risks require coverage that generic commercial policies often fail to address adequately.

The unique risk profile of transport

Recognising this challenge, GT Insurance developed its Transport Package to address the full spectrum of risks facing operators. According to Ben Briscoe, general manager for sales, underwriting and technical services, “GT developed the Transport Package because transport operators face a unique mix of risks that aren’t well served by generic policies. “By consolidating motor, downtime, liability and carriers’ cover, we’ve created a solution that reflects how operators actually run their business and where their real exposures lie. It’s about providing certainty in the areas that matter most, so operators can focus on keeping their wheels turning,” Briscoe says.

The current economic environment has made inadequate insurance protection increasingly visible and costly. Operators who might have survived a significant insured event five years ago now face existential threats from the same scenario. The combination of higher operating costs, tighter margins and increased repair complexity has fundamentally shifted the risk-reward equation. In an industry where reliability is paramount, operators that fail to meet delivery commitments often find customer relationships permanently damaged. Clients increasingly expect their transport providers to have contingency plans in place, including insurance arrangements that ensure continuity of service.

The launch of GT Insurance’s Transport Package on Sunrise Exchange in June 2025 reflects the insurance industry’s recognition of these changing dynamics. By making comprehensive transport insurance accessible through this digital platform, the product reaches operators who may lack traditional broker relationships while providing the sophisticated coverage that modern transport businesses require. The timing acknowledges a simple truth: as the transport industry continues to grow and face new challenges, the need for appropriate protection becomes more pressing. In a sector where the difference between profit and loss can be measured in days rather than months, comprehensive insurance coverage has evolved from an optional extra to business infrastructure – as essential as the trucks themselves. For Australia’s transport operators, this protection now represents not just prudent risk management but a competitive advantage that enables sustainable growth. The operators who recognise this reality will be the ones still turning wheels when the next challenge arrives.

A market response to market reality

Disclaimer: This article has been prepared in collaboration with GT Insurance. In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way. Content includes products and their benefits, any advice is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider its appropriateness having regard to your own circumstances. Please read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decisions regarding insurance products. Any opinions expressed constitute our views at the time of issue and are subject to change. Neither GT Insurance, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article. Global Transport & Automotive Insurance Solutions Pty Ltd trading as GT Insurance ABN 93 069 048 255 AFS Licence No 240714 as agent for the Insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No 234708 is an issuer of marine insurance products.

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