Employer says we have to pay for Business Insurance!

art_for_arts_sake

Acc72 wrote: »

I have also had to pay this in the past - it cost under £20 per year and this was covered within the mileage rate as described above.

I can't imagine where an additional £75 per month comes from (unless it is a Ferrari !)

Andy_L wrote: »

Possible a mistake & someone asked for/company quoted for one of the higher grades of business use, eg taxi-style "hire & reward" cover?

I'd have thought that anyone carrying passengers on a regular basis whether for reward or otherwise would be seen as an increased risk for an insurer. That is what they are charging you for, regardless of income. If it doesn't work for you as a volunteer that's up to you to decide. The fact you are receiving a mileage allowance, however small, means you are being paid.

colino

I'd be very careful that you discuss properly with your insurer what you are doing here. Business use is generally a fairly lax term for someone to beetle about doing their own job. You appear to be carrying people and being rewarded (40ppm) who are not part of your business.
Some insurers will not cover at all, others might consider you a private hire driver and require an enormous extra premium.
Whatever, you are not making any money at that rate, even HMRC disregards up to 45ppm and I assure you that no matter what you are driving, taking into account all of your costs, 40ppm doesn't cover it.

getmore4less

The reward element just covers expences so in most cases will not be considered reward, that might change if the service users start to contribute.

Most insurers now cover this similar issue for car sharers under SDPC policies with a specific inclusion.


definately make sure the insurer knows what it is tht you are planning to do.

Workers also need reminding of the smoking laws.

Also make sure if there are any company pool vehicles that the relevent Public vehicle licences are in place.