Class3 Business Insurance - Can I Buy It To Cover Deliveries?
No. Business insurance doesn't cover delivering goods. Very many delivery drivers don't know this, which is one of the reasons why around 75,000 motor vehicles are seized by the police every year for insurance offences, about 40% of which are never returned to their former owners.
If you deliver goods and get paid for it you will need a class of insurance known as 'Hire and Reward'. without this you are likely to be uninsured, even whilst you are not actually carrying out deliveries.
The fact is, at this very moment there are thousands of motorists driving cars and vans thinking that they are properly insured but they are not. Are you one of them?
So what actually is business insurance for?
Perhaps the majority of motorists in Britain have social, domestic and pleasure insurance with commuting. This allows them to drive regularly to a single place of employment.
Many people, however, use their vehicles for driving to more than one location. They usually work at the office, but sometimes visit the factory or another branch. This is classed as business use for which they need, as a minimum, class one business insurance. this allows them, and only them, to commute to more than one place of work.
Class two is very similar but it allows them to name other drivers who can also use the vehicle in this way.
Class three business insurance allows motorists to drive throughout Britain, visiting multiple locations, and it is really designed for people like travelling salesman or company representatives. With this class of insurance they can carry samples or small articles that they sell themselves. It does not, however, normally provide cover for delivering any articles for other people in exchange for payment; in other words if you work for a company like Amazon or a food delivery company this insurance cover will not usually be sufficient to keep you covered, and within the law.
So if I deliver goods in exchange for payment, what insurance do I need?
Some people call it commercial insurance, courier insurance, delivery driver insurance, or even haulage insurance. Strictly speaking these are all types of Hire and Reward insurance. This is the generic term for the type of cover you need for transporting just about anything in exchange for payment, including, but certainly not limited to, parcels, car parts, pizzas, furniture and even livestock.
So which type of Hire and Reward insurance do I have to buy?
This depends upon several factors such as the type of deliveries you make (in other words, you may make a single delivery per day from the same depot, multiple deliveries from the same depot, or multiple deliveries from several different locations!), the type of goods you carry, and where you deliver them to. However a good insurance broker will make sure that you get the right cover to keep you properly insured and within the law!
Aren't brokers expensive?
It is a common myth that price comparison sites are free. In actual fact the owners of these sites almost inevitably receive a commission (which, in the end, you pay for) for every policy they sell. This is why perhaps better or cheaper policies from insurers that do not pay them a commission are as rare as hen's teeth on their websites.
Most brokers however also receive a commission for each sale. The difference is that you have a real live person who can help you make sure that you are not one of those people who are unintentionally uninsured, and they may be free to search the entire insurance market to get you the best possible deal.
Surely if I get stopped by the police, and I truly believe that I am insured, I will be in the clear?
Sadly, no. Driving without insurance is known as an 'absolute offence'. This means that you are either properly insured, or not. The fact that you believed yourself to be covered might just result in a slightly lower fine in a magistrates court but you would still be found guilty of driving without insurance, along with all the other penalties that this would bring.
What would happen if I was stopped by the police whilst delivering goods, and I didn't have the right insurance?
Your vehicle would, almost certainly, be impounded. You would have to arrange for the collection of any goods in the vehicle yourself. You would be given the option of paying a fixed penalty of six penalty points plus a fine of about £300, or having the case heard by a magistrates court. The magistrates do have the power to levy a much higher penalty, including disqualification from driving, if they think it is justified.
You would also, of course, have all the hassle of getting the vehicle out of impound (this may be a lot more difficult than you expect) as well as costs to pay.
Why would police stop me?
There are literally thousands of cameras along roads and motorways, and even police patrol cars. They check number plates against a central database which holds records of every vehicle insurance policy in Britain. If a delivery vehicle is checked and it isn't covered by the right insurance it's flagged up for pulling over and nearby police officers are informed. Easy, really.
How do I make sure I have the proper insurance?
Click the link below, fill in the details form and up to three specialist Hire and Reward insurance brokers will send you quotations to compare.
There are a lot of different insurance companies out there, but it's important to make sure you're getting the right cover from a trusted provider. This is why you will only get quotes from top-tier insurers to give you the best possible protection.
Other Popular Policy Options Include:
- Public liability insurance
- Employer's liability insurance
- Professional indemnity insurance
- Product liability insurance
- Directors and officers insurance
How it works
- You fill in a simple form, giving some details of what you are looking for.
- Depending upon your requirements, up to three selected brokers from the panel will be asked to collect quotes for you.
- You will receive broker quotations to compare.