What insurance?

Hi guys, what insurances do i need to start up in business for myself? People on here talking about courier and haulage insurance, i thought van and goods in transit insurance would do, am i wrong and if so what's the difference between goods in transit and public liability insurances?

For courier work you will need to be insured for the carriage of goods for hire and reward, just having a van insured for business use will not be enough. A tradesman would insure their van to be used for business use but as a courier you should be insured to carry customers goods for hire and reward. You will need goods in transit insurance which basically means the customers goods you have on your van are insured against damage/loss while in transit. Normally the cover amount would be around £10.000 although this can vary. If you would be transporting target goods or more expensive goods you would obviously need higher cover although if you are solely sub contracting work from courier companies the standard amount should be fine. You should have public liability insurance as this will cover you in case a member of the public makes a claim against you. For example if you had an accident or incident and someone made a claim against you this would cover your legal expenses and possible compensation pay out. With public liability the cover amount are normally 1 million 2 million or 5 million. The goods in transit and public liability are not very expensive. The most expensive and the one you really need to shop around for is your courier insurance.

Hire & Reward: The legal requirement for using your vehicle and getting paid for it (the above can be divided into two types Courier & Light haulage, the latter is usually cheaper but best speak to your insurance broker as to whether you can satisfy the requirements) Goods In Transit: Not a legal requirement but not to have it would be frowned upon by end users & subbers, as it says on the tin covers the goods carried Public Liability: not a legal requirement but you would be seriously foolish not to have this Covers you against any claim for any injured party due to potential negligence on your part

Thanks for the replies, there's a lot more to this than people think.

I had a thought the other day as I dripped water from my wet jacket all over the marble reception area, I'm glad I have public liability, however I didn't mention it to the receptionist (with witnesses) hoping it absolves me of some blame if they decide not to clear it up

So what's the difference between van insurance and courier insurance? Surely if you get public liability and GIT wouldn't plain old van insurance for hire and reward do?

Safe Transit said:

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So what's the difference between van insurance and courier insurance? Surely if you get public liability and GIT wouldn't plain old van insurance for hire and reward do?

Normal insurance allows you to drive your vehicle to and from your place of work and for social and pleasure journeys.

Business insurance allows you to drive your vehicle in the course of your employment duties.

The moment that you are using your vehicle as a means to directly earn money that becomes a whole different animal.

This is Hire and Reward!

However, since you are transporting goods on the behalf of other people your insurance has to state, Carriage of goods for hire and reward in order to be legally valid.

If it doesn't state this and you're stopped by VOSA whilst you are doing a courier job, your vehicle will be confiscated and crushed.

If you get in an accident whilst you are doing a courier job and you don't have proper insurance then all of your insurances H&R, GIT and PL are all completely invalid.

None of them will pay you a penny and all the legal costs will be your personal responsibility.