Hauliers & Couriers Insurance

Do I need Haulier and Couriers Insurance?

The insurance you need as a Haulage or courier company:

Commercial vehicle

• Comprehensive
• Third Party, Fire & Theft
• Third Party Only

Goods in Transit

A Haulage Vehicle insurance policy won't cover the goods you carry - this is covered by a separate insurance policy called 'Goods in Transit' insurance. As a haulier or a courier, you must insure the goods that you are carrying while they're in transit.

There are two types of use under a haulier or courier insurance policy - carriage of goods for hire and reward, or carriage of your own goods.

1. Hire and Reward insurance cover - for vehicle operators and courier companies who carry goods for others and are paid by them to carry the goods.
2. Carriage of own goods insurance cover for operators who use their vehicles to transport their own goods or to deliver their own goods to customers. They do not receive payment from others to carry the goods.

The Goods in Transit policy will cover:

• Loss while in transit
• Theft while in transit
• Damage caused by accidents during transit
• Other damage caused during transit

Most insurance policies will include cover under the Road Haulage Association (RHA) terms of cover for the UK, ie, a maximum limit of liability per metric tonne.

For the owner of the goods, it's rarely adequate. Most will take out their own cover in the event the haulier wasn't negligent and their insurance won't pay out.

Increasingly, owners of goods are demanding higher levels of cover for their goods by hauliers transporting them.

Certainly own goods insurance cover gives you more control, plus you don't have the admin burden of having to check each haulier's insurance arrangements.

If the goods are imported from outside the UK then the European CMR conditions of carriage come into play.

CMR terms demand higher limits of cover - usually £250,000 per load.

If you use sub-contractors, check their cover level, too. The ultimate responsibility lies with you, the contractor, to make certain that the right insurance is in place. Quite often, a Goods in Transit policy will cover this potential loophole.

Type of Goods

You must be aware of the type of goods being carried and if they are what insurers refer to as 'theft attractive' (eg computers, cameras and mobile phones). Insurers can demand that the load is never left unattended whilst in transit.

Trailers

Normally trailers owned by the haulier are covered under the motor insurance policy. If you use other people's trailers to transport goods, make sure you also have what's called unspecified trailer cover, to insure the trailer.