Hauliers & Couriers Insurance

What does Haulier and Couriers Insurance Cover?

What is Covered / Excluded?

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 - this is for operators who use their vehicles to carry goods for others and are paid by them to carry the goods.
2. Carriage of own goods insurance cover - this is 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 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.

More and more 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.

Using sub-contractors

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.

What cover to choose?

Decide which of the following covers best suits your business needs, then compare quotes and prices for the best cover options for you:

• Comprehensive, third-party fire and theft, or third party commercial vehicle insurance
• Public and Employers' liability
• Goods-in-Transit
• Hazardous goods
• Legal expenses
• Replacement vehicle
• Emergency breakdown/Accident recovery
• Engineering inspection and insurance for vehicle-mounted lifting equipment
• Personal accident/sickness
• Property insurance
• Business interruption
• Optional extras
• Loss of licence/ Operators Licence
• Strike & Blockade Insurance
• International driver travel cover
• Directors' and Officers' liability

The cost of insurance will vary according to:

• vehicle type (van, tipper truck, lorry)
• type and value of goods being carried
• number of vehicles
• number and ages of drivers
• where the cover is to operate (UK only, Europe)

By researching what's on offer, you can save hundreds if not thousands of pounds, which you could use to increase your voluntary excess thus reducing your premium, or goods in transit cover, for example.