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Courier & light haulage insurance

Comprehensive insurance for your courier and light haulage business

Courier & Light Haulage Insurance

Choose Ratcliffes for your courier and haulage insurance

Courier and light haulage cover comes in two parts: motor insurance for the van, and goods in transit with public and employers’ liability for the work. Ratcliffes has arranged both since 1976, for one-van owner drivers and for fleets, through UK insurers with an A rating. This page explains what each part does and which one you need.

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Goods in transit & liability insurance

If you need cover for goods in transit, public liability and employers’ liability insurance, you can use our online quote and buy system. It lets you get a quote and buy your cover in one place.

Get a quote for goods in transit and liability insurance

Comprehensive hire and reward motor insurance

If you’re looking for vehicle insurance only or comprehensive cover options, please contact us for a tailored quote. Our experienced team is ready to assist you with your specific needs.

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Key insurance covers

Explore the essential insurance options below, designed to protect your courier and light haulage business. We tailor each cover type to the challenges of your operations.

Freight operators’ liability insurance (goods in transit)

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 buy a Freight Operators Liability policy, also known as Goods in Transit insurance. It covers your liability if you lose or damage the goods you carry.

Key cover options

  1. All Risks Cover:
    This cover protects the full value of the goods, which you can choose when buying your policy (e.g., £50,000). This is the most common cover for courier and light haulage companies.
  2. Road Haulage Association (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 (international road haulage) Conditions:
    Used for transporting goods internationally (except for household items, mail, and funeral arrangements) while on the same vehicle. This cover limits liability to approximately £9,000 per tonne and includes protections tailored for international transport.

Working out the cover you need

Your cover 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 Evri 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 cover, they should arrange their own cargo insurance.

Public liability 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:
    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 have the financial protection 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 cover allows you to focus on your work without worrying about potential financial consequences from unforeseen events.

Cover 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 cover. We offer two cover 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

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 cover.
  2. Employee Protection:
    This insurance covers employees who may suffer injury or become ill due to their work. It includes medical expenses, rehabilitation costs, and compensation for lost wages, so employees receive financial support if they experience work-related issues.
  3. Risk Management:
    Couriers operate in fast-paced, 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 cover for workplace injuries boosts employee confidence. It demonstrates a commitment to their well-being and fosters a positive workplace environment.

Cover limits

The standard limit for employers liability cover in the UK is £10,000,000, and you cannot change it.

Premium structure

  • For smaller companies, insurers typically calculate premiums 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.

Hire and reward motor insurance

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

Running several vans? Bring them under one fleet policy, arranged by people who know the courier trade and have strong relationships with the fleet insurance market.

Talk to the people who do the work

Call or email our commercial vehicle specialists direct. No call centre. You speak to people who know haulage and look after your courier and light haulage motor insurance.

See the full direct client team

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