A heavy equipment underwriting expert has reminded brokers to take special care when preparing policies for clients running operations on private land. CEMAC MD Murray Rogash says his concern has been raised by a recent case where the driver of a truck was seriously injured after a front-end loader working on private land crushed his vehicle.

“Even though it was on private property, the law in most Australian states – if not all – says the area where the truck was situated is a ‘public roadway’,” Mr Rogash said. “So the loader was required to be registered and have CTP insurance.”

The liability insurer’s refusal of cover under the “registered vehicle” exclusion has been upheld in court. The insured is now being sued for as much as $3 million and is in turn suing his broker.

Under liability policies written by the major plant insurance specialists, the “registered vehicle” exclusion is written back if the unit was working as a “tool of trade” at the time of the accident. But the unit is not covered while it is being moved. “I believe cover would have applied if the bucket of the laader was full at the time,” Mr Rogash said. “But it had just offloaded.”

While CEMAC’s policy covers equipment for “travel within a worksite if simultaneously being used for work” – which Mr Rogash says would have provided cover in this case – most states also now allow “conditional registration” that can apply to heavy earthmoving equipment.