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Haulage Insurance

The vast majority of truck/HGV owners do put their vehicles to commercial use, and haulage insurance is typically aimed at this group. Categories of business use include carriage of own goods, carriage of goods for hire or reward and haulage.

The differences between haulage and carriage of goods for hire or reward are subtle but we have found, within the insurance industry that the best definition is:

Haulage Insurance is related to cover for the carriage of goods for hire or reward – namely the business of charging to deliver goods owned by someone else;
HGV Insurance, on the other hand, may sometimes be described as carriage of own goods insurance, since it refers to the transport of goods which are owned by the same company;

In practice

• in practice and according to these distinctions many lorry owners may operate both as hauliers and as transporters of goods which they also own;
• for insurance purposes, therefore, the simplest rule may be to ensure that your insurer and insurance broker understands the business you are in – both on a day to day basis and occasionally as the need may arise

What it means

• what it boils down to – whether you are talking haulage or HGV insurance – is that you have the same basic choices between third party, third party, fire and theft, or comprehensive insurance for the vehicle you are seeking to protect
• just as any other motor insurance, cover for your HGV also carries an excess – the first part of the cost of any claim for loss or damage made under the policy;
• As with other insurance policies, too, you may typically choose to take on an additional voluntary excess – in other words, agreeing to pay a greater share of any claim for loss or damage – in order to gain a reduction in the cost of the insurance premiums you need to pay.

Provided you keep in mind the importance of informing your insurer of the precise nature of your business, therefore, there is in practice likely to be very little practical difference between lorry haulage insurance and HGV insurance.

Cover for hazardous goods and locations

If your HGV is used to carry hazardous goods, you need to be aware that this is a typical exclusion on many truck insurance policies. There are firms who will cover the transit of hazardous material, but make sure you know this is included in the terms and conditions of your policy. If in any doubt, speak to the insurance broker before taking out your cover.