Haulage is a term simply meaning the carriage of goods by road, generally from one point to another (rather than the delivery rounds made, for example, by courier services).
The distinction between haulage and courier services is an important one, but, confusingly one which might vary from one insurer to another. It is very important to know what your own insurer means by each term, since if you arrange haulage insurance but are in fact carrying out what the insurer classifies as courier services, your cover may be invalidated.
If it is haulage insurance that you need – and need to be certain that this is the cover recognised by the insurer you have chosen – a safer course of action might be to arrange your insurance through specialists and experts in this particular niche of the insurance industry; specialists just like us here at constructaquote.com.
Remember that haulage insurance – or HGV insurance, as it might also be known, if you are using a heavy goods vehicle to carry your loads – is likely to be necessary whether you are transporting your own goods or those owned by others.
Why choose us at constructaquote.com?
- We are small business specialists, offering and servicing polices for SME's all over the UK.
- We have been established in the insurance industry since 1990.
- Our call centre is based in the UK ready to assist you with your insurance needs.
What does haulage insurance typically cover?
Any motor vehicle – including one used for haulage – needs to be continuously insured for a minimum of third party cover whether it is in use, parked or temporarily kept off road. The only exception is if you have a statutory off road notification (SORN) for the vehicle.
The law imposes stiff penalties if you are the keeper of a vehicle that does not have the legal minimum of third party insurance – and if that vehicle is being driven whilst uninsured, the penalties are even stiffer.
Once you have met the basic requirement of third party cover, however, there is still a choice whether to stick with that, upgrade to third party, fire and theft or arrange the fuller protection of comprehensive insurance.
The type of insurance you choose is naturally related to the age and condition of the vehicle (the likely cost of repairs or replacement in the event of a total loss). But it may also depend on other factors, such as whether the vehicle is going to be used primarily for the transport of your own goods, the carriage of goods for hire or reward or for general haulage operations.
The weight of the vehicle is also likely to come into consideration: you need HGV insurance, for instance, if the vehicle is a heavy goods vehicle (HGV), that is 3.5 tonnes or more, or light goods vehicle (LGV) insurance if it is less than that weight.
Special consideration for your drivers
Your drivers need to hold the relevant licences to drive your haulage vehicle and an insurance policy which can cover either any driver, or individuals named as drivers – the latter, named drivers only, typically earning you a discount on your premiums.
But there is a further important consideration as far as insurance relating to your drivers are concerned. These are individuals in your employment – however infrequently they may drive for you. Since you are employing them, your haulage insurance also needs to take into account the need for employers’ liability insurance – this is the minimum requirements which are mandatory under current legislation.
In fact, if you have any employees at all in your haulage business – whether as drivers, in the workshops or in some administrative capacity, you may face a fine of up to £2,500 for every day you do not have employers’ liability cover.
The law currently requires that you have a minimum of £5 million of cover – to ensure that any settlement may be made to an employee who is injured, falls ill or suffers some other medical condition as a result of working for you.
The value of public liability insurance
It is not only when your haulage vehicles are on the road that your operations may cause injury or property damage to a third party. During the course of loading and unloading, for instance, there remains a risk of injury to a member of the public or of damage to his or her property.
You may be held liable in any such case and ordered to pay substantial compensation to the injured party or parties. Public liability insurance commonly offers cover for at least £1 million.
Cover for goods in transit and European travel
As well as protecting you, your vehicle, any other vehicles or property, and injury to you or others, do you need protection for your cargo? If so, you might need to add goods in transit protection to your haulage insurance package.
Do you travel abroad? If so, then you need to check whether your insurance would cover you for delivering in EU.
Why not contact us today to see how we can help you protect your business?