What does haulage insurance cover?

At its core, motor cover on HGVs and vans used for hire and reward, which standard commercial vehicle insurance excludes. Around that sit goods in transit for the loads you carry, employers liability for drivers and staff, public liability for the depot, CMR liability for international journeys, and optional covers such as trailer, breakdown and legal expenses. Undeclared cargo types and unattended-vehicle theft outside the policy conditions are the common exclusions.

What is hauliers insurance?

Hauliers insurance is another name for haulage insurance: the cover a business that carries other peoples goods by road for payment needs to trade. It starts with hire and reward motor insurance on every vehicle and usually adds goods in transit, employers and public liability, and CMR cover for international loads. Hauliers liability insurance normally means the liability sections alone: public and employers liability plus carriers liability for goods held under a contract of carriage.

What insurance does a haulage contractor need?

By law, hire and reward motor insurance on every vehicle and employers liability once you employ anyone; an operators licence is also needed for goods vehicles over 3.5 tonnes carrying for hire. Most customers, freight exchanges and main contractors also ask for goods in transit or carriers liability at a stated limit per load, and public liability for loading and site work. Declare any sub-contracted loads, because many goods in transit wordings exclude or restrict them.

Is haulage insurance the same as hire and reward insurance?

Hire and reward is the use class on the motor policy that allows you to carry goods belonging to other people for payment; haulage insurance is the whole package built around it. Hire and reward alone insures only the vehicle, not the goods, the staff or the premises.

How much does it cost to insure a lorry for haulage?

There is no standard figure. Insurers rate on the vehicle, the drivers, the operators licence and record, the cargo carried, the area and mileage, overnight storage, the goods-in-transit limit, confirmed claims experience over three to five years, and the excess.

Can you insure a lorry for a day?

Short-term HGV cover exists, but it is designed for moving a vehicle, a test drive or delivery to a buyer, not for trading. Temporary policies almost never include hire-and-reward use, so a lorry insured for a day cannot lawfully carry paying loads. A haulier should add a short-term vehicle to the fleet or haulage policy instead.

Do I legally need employers liability insurance as a haulier?

Yes, as soon as you employ anyone: employers liability is compulsory with a minimum limit of 5 million pounds and most policies written at 10 million. Agency drivers under your control and self-employed drivers who work only for you and use your vehicles are treated as employees for this purpose. Owner-drivers with no staff are the only hauliers who can trade without it.

Haulage Insurance UK for Hauliers & Contractors