01 / The meaning
What it means.
A damaged delivery van can create hire costs, missed work and scheduling problems beyond the vehicle repair bill. Similarly, a customer may allege lost use of their premises after a contractor’s work. Those are different claims: one concerns the insured business’s own costs, while the other concerns alleged liability to someone else. Each requires its own analysis.
Check whether physical damage is required, whether the property must be insured and how any hire or interruption benefit is measured. Waiting periods, daily caps, maximum hire days and requirements to use an approved supplier may matter. A broad reference to loss of use does not mean all lost sales, inconvenience or substitute equipment costs are included.
02 / Put it in context
A practical example.
Hypothetical example: A florist’s van is damaged before a weekend of bookings. The florist keeps records of the repair estimate and proposed replacement hire. The motor policy’s hire benefit and any business interruption arrangements need checking before costs are assumed to be insured.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify whose property is unusable and the cause of that loss.
- Check physical-damage triggers and substitute-hire conditions.
- Review daily amounts, time limits and evidence of additional expense.
04 / Start a useful conversation
A question for your broker.
Does the wording address replacement hire, lost income or a third-party claim?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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