Author, Rory Anderson, Account Executive, Rancho Mesa Insurance Services, Inc.
A tree care company’s auto fleet includes specialty vehicles like bucket and box trucks. These vehicles are important assets for the company and critical for completing jobs. Getting into an auto accident is already stressful, but what can add more grief is if the vehicle that gets damaged is vital for your business. In this case, you will be looking to rent a replacement vehicle during the repair window so that your business can maintain productivity and profitability. With this in mind, rental reimbursement coverage helps cover the rental cost incurred while your vehicle is repaired after a covered loss.
In the tree care business, renting a specialty truck is no easy task. Rental bucket and box trucks are expensive and limited. Renting these specialty trucks can cost up to $600 per day. In addition to the cost, the COVID-19 pandemic continues to cause problems with the supply chain of products, including auto parts. So, not only is it expensive to rent these specialty trucks, but it is also taking longer than normal to get vehicles repaired.
The standard rental reimbursement coverage will offer between $50 and $100 per day for 30 days. With how costly the tree care specialty trucks are and with the amount of time it is taking to repair these trucks, you can see how you might find yourself in a sticky situation if one of these key trucks goes down. However, certain insurance carriers will offer to increase the per day amount as well as extend the period of rental reimbursement coverage, if needed.
Partnering with an insurance professional who specializes in the tree care industry is important to make sure that your bucket and box trucks have the correct rental reimbursement coverage in the case of an auto accident.
To discuss this potential gap within your current insurance program or any other commercial insurance for your tree care business, contact me at (619) 486-6437 or randerson@ranchomesa.com.