insurance

Hi what kind of insurance do I need for my van apart from GIT and public liability. Do I really need hire and reward insurance. Thanks

Yes. You are being hired and rewarded for carrying goods, so you need "Carriage of goods for hire and reward". Whether or not light haulage insurance will cover you is a bit of a grey area, it will very much depend on what you're actually doing.

Without it you are committing a driving offence and could possibly have the vehicle plus the goods inside seized. Don't think this doesn't happen as I often see road stops in London specifically targeting couriers.

Why need double insurance? Carriage of goods for hire and reward cover load, GIT cover to?

One insures you to drive your vehicle on the road, the other insures the goods you carry in your vehicle.

I can drive just with social type insurance

Its four times cheaper than carriage of goods for hire and reward.

A.P Speed Parcels said:

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Its four times cheaper than carriage of goods for hire and reward.

Of course it's cheaper, SDP insurance carries a lot less risk for the insurance companies - you are not insured for driving your vehicle in connection with ANY business therefore you are NOT INSURED

But question why need double insurance, carriage of goods for hire and reward covering load, and GIT covering to?

No, carriage of goods for hire and reward does not cover your load. It covers YOU to drive your vehicle whilst in the business of carrying goods. Social domestic and pleasure insurance does not cover you for this.

Why is so expensive i have £320 for SDP or £1650 for carriage of goods for hire and reward?

Because you are much more likely to have an accident or have your vehicle stolen.

A.P Speed Parcels said:

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Why is so expensive i have £320 for SDP or £1650 for carriage of goods for hire and reward?

Average mileage for SDP 10-12000, average mileage for courier 70-100000 - there is the higher risk

There is no legal requirement to have Goods In Transit or Public Liability but without them you are not insured against loss or claims for your load or by the General Public.

And without them you are unlikely to get anyone to sub contract work to you.

The Hire & reward insurance is however a legal requirement.

MK BIKES said:

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There is no legal requirement to have Goods In Transit or Public Liability but without them you are not insured against loss or claims for your load or by the General Public.

And without them you are unlikely to get anyone to sub contract work to you.

The Hire & reward insurance is however a legal requirement.

Nice explain thanks :¬)

And if you have Hire & Reward you then do not also need SDP and you will be covered for this also

This post is highlighting how we get to some drivers having no insurance, or incorrect insurance, and thereby able to quote lower than a bonfide courier.

If they had to upload GIT, H&R or proper courier insurance, we'd all know where we were, and there would be no confusion. To be honest I'm staggered there are those who don't know.

There may be something to be said for having to prove all insurances are in order before being able to access any work on the site.

Liability and ‘CMR Insurance’ Under CMR your liability for loss or damage to a load is strictly limited to 8.33 SDRs (Standard Drawing Rights) per kilo, unless you’ve chosen to offer your customer a higher level of liability. That’s currently equal to £6.87 per kilo of damaged, lost or stolen goods, or the actual value – whichever is lower. While that’s a higher rate than standard FTA or RHA limits of liability (£1.30/kg) it’s still less than that offered by most couriers’ standard Terms & Conditions.

Despite what you may have been told ‘CMR Insurance’ is NOT compulsory by law, in fact there’s no such thing as CMR Insurance – it’s just Goods In Transit insurance that meets your liabilities under CMR. Since your liabilities under CMR are usually more limited than your liabilities under UK Common Law, or most couriers’ Terms & Conditions, then this issue of ‘CMR Insurance’ shouldn’t really exist for same day couriers; it’s only the ‘Territorial Limits’ of standard GIT cover that make it an issue.

You may also feel that your chances of theft or damage to your load are increased when travelling abroad, particularly during the often unavoidable overnight