Courier & Light Haulage Insurance

When you enter into a contract to transport goods for a third party, you automatically become responsible for those goods while they are in your care. If they are lost, damaged, or stolen, the third party can hold you liable for their loss.

As a carrier, you cannot insure the goods themselves since you don't have an 'insurable interest.' However, you can purchase a Freight Operators Liability policy (also known as Goods in Transit insurance) to cover your liability in case the goods you are transporting are lost or damaged.

 

Key Coverage Options

1. All Risks Cover:
   This coverage protects the full value of the goods, which you can choose when buying your policy (e.g., £50,000). This is the most common coverage for courier and light haulage companies.

2. RHA Conditions:
   These conditions limit your liability to a specific amount per tonne, usually around £1,300, but this can vary. They provide established protections to help you in case of a loss.

3. CMR Conditions:
   Used for transporting goods internationally (except for household items, mail, and funeral arrangements) while on the same vehicle. This coverage limits liability to approximately £9,000 per tonne and includes protections tailored for international transport.

 

Determining Your Coverage Needs

Your coverage requirements may depend on several factors:

• Contractual Obligations: The third party may require you to have Freight Operators Liability cover for a specific amount. For example, if a client wants to transport running shoes worth £50,000, they may insist you have £50,000 All Risks cover.

• Delivery Company Requirements: Companies like Hermes might require you to have a policy that provides £20 per parcel, with a maximum limit of £30,000 per vehicle. In this case, you would need to purchase a Freight Operators Liability policy that meets these requirements.

• Standard Contracts: Your company might have a set contract that outlines the standard Goods in Transit cover you provide, such as £25,000 All Risks cover.

 

Important Note

As a courier or light haulier, your role is to transport goods from point A to point B, not to insure them. If the owner of the goods wants proper insurance coverage, they should arrange their own cargo insurance.

Public liability insurance is essential for couriers for several reasons:

1. Third-Party Injury or Property Damage:
   This insurance covers you in case you accidentally injure someone or damage their property while performing your duties. For example, if a courier injures a person or damages a customer's property during a delivery, public liability insurance can help pay for legal fees, medical expenses, or property repairs.

2. Customer Requirements:
   Many clients, including larger companies and trade associations, may require you to have public liability insurance before they do business with you. This is especially common when working on council-owned property or in regulated industries.

3. Professionalism and Trust:
   Having public liability insurance demonstrates your commitment to responsible business practices. It assures clients that you are financially prepared to handle unexpected incidents, enhancing your business's professionalism and trustworthiness.

4. Risk Mitigation:
   Couriers operate in dynamic environments where accidents can happen. Public liability insurance helps protect against financial risks associated with incidents that may occur during transportation, handling, and delivery.

5. Peace of Mind:
   Knowing you have insurance coverage allows you to focus on your work without worrying about potential financial consequences from unforeseen events.

 

Coverage Levels

It’s important for couriers to assess their specific needs and the risks associated with their operations to determine the right level of insurance coverage. We offer two coverage limits: £2 million and £5 million.

• £2 Million Cover: This is generally sufficient for moving goods for smaller companies.
• £5 Million Cover: If you're working on council property, for larger clients, or with blue-chip companies, you’ll need this higher limit.

The difference in premium between the £2 million and £5 million options is minimal, so you may want to consider opting for the £5 million limit for added protection.

Employers liability insurance is essential for courier companies that employ staff for several reasons. It’s important to note that if you have self-employed workers who primarily work for you in vehicles you provide, you are still responsible for them as if they were PAYE employees.

 

Why Employers Liability Insurance is Important

1. Legal Requirement:
   In the UK, employers liability insurance is a legal obligation. It ensures that businesses have financial protection to compensate employees who suffer work-related injuries or illnesses. Not having this insurance can result in legal penalties and fines. A national database tracks companies that do or do not have this coverage.

2. Employee Protection:
   This insurance covers employees who may be injured or become ill due to their work. It includes medical expenses, rehabilitation costs, and compensation for lost wages, ensuring employees are financially supported if they experience work-related issues.

3. Risk Management:
   Couriers operate in fast-paced and often risky environments, such as driving on roads and handling packages. Employers liability insurance is a key part of a comprehensive risk management strategy, helping to mitigate financial risks associated with workplace injuries or illnesses.

4. Legal Defence Costs:
   This insurance also covers legal costs if an employee files a claim against the employer for negligence related to an injury or illness. It provides financial support for the legal expenses incurred during such claims.

5. Compliance with Contracts:
   Some clients, especially larger companies or those in regulated industries, may require couriers to have employers liability insurance as a condition of doing business.

6. Employee Confidence:
   Knowing that their employer has insurance coverage for workplace injuries boosts employee confidence. It demonstrates a commitment to their well-being and fosters a positive workplace environment.

 

Coverage Limits

The standard limit for employers liability cover in the UK is £10,000,000 and cannot be altered.

 

Premium Structure

• For smaller companies, premiums are typically calculated on a per-employee basis.
• For larger companies, premiums are based on total wages and can vary by job roles, such as manual labour or administrative work.

We offer Hire & Reward motor insurance for everything from single vehicles to large fleets, partnering with A-rated insurance providers.

Our experienced brokerage team is here to guide you through your motor cover options, whether over the phone or via email. We want to ensure you feel fully informed and comfortable with the insurance we provide on your behalf.

 

Fleet Insurance

In addition to our strong relationships with standard fleet markets, we are one of the few brokers in the UK selected to offer a revolutionary new motor fleet insurance policy. Developed by leading underwriters in the UK, this policy aims to significantly reduce your claims costs—by up to 80%—in the event of a claim. This is crucial for keeping your company's premiums low.

Since insurance premiums are directly related to the amount insurers pay out in claims, this innovative approach to handling claims can greatly enhance your company’s profitability, especially if you face any claims. The new system also expedites claim payments, reducing potential disruptions to your business and helping you keep operations running smoothly.