Car insurance- staff running errands

doningtonphil

Hello.
We are a limited company with no company vehicles.  Form time to ime local suppliers have items ready for us which it would be quicker for us to collect than await delivery.  What is the position regarding members of staff 'nipping in' on the way to or from work to collect/drop off items?
One member of staff asked about business cover on the standard SDP+commute policy and was quoted over £4000!.

I know there is a view of 'well who is going to know' but which level of cover would entirely cover such detours?  At times it would be handy for someone to 'nip out' during the day to get something so wont be part of their journey to/from home.  COuld these be covered too?

I hope you can help

Many thanks

Sandtree

doningtonphil said:

What is the position regarding members of staff 'nipping in' on the way to or from work to collect/drop off items?

Most insurers are going to say this makes them a courier and so would need insurance that covers hire & reward which is significantly more expensive.

How often are you looking for people to do this? There is pay as you go courier insurance aimed at those who do temp work with Amazon et al which is likely to be cheaper.

For just popping between sites Business Class 1 is fine, remembering it only covers the policyholder not named drivers, and rarely adds much to the cost of SD&C policies (often its free if done at inception)

Mistral001

It could be considered too much of an imposition on your staff to do this in their own car and in their own time.  It is probably not in their terms an conditions of employment anyway.  Make the trips yourself and check if you have the correct insurance for this type of business travel, or get a van or car and insure it so that you or any of your employees can use it.

Grumpy_chap

This could well be something where the devil is in the detail - if the "pick up on the way in" is purely incidental to the purpose of the journey (commute to work) it may be covered by a standard SDP+C policy.  I stress the word "may" and individual policies should be checked.  Care will also be required to understand the limitations of "incidental" in terms of both the detour / action taken to do the "pick up on the way" and the items that are carried.

The "nip out" during the day is creating an additional journey so, presumably, is not "incidental".

Even though you do not have any company vehicles, do you usually drive to work yourself and could your own car be insured for any driver?  Is the "pick up on the way in" something you could do?

J_B

My car is insured for "social, domestic and pleasure use, voluntary use, commuting and business use  ....."

I *think* the business bit cost about an extra £20 per year

doningtonphil

Thanks for all your replies.  I actually live in Scotland, the premises are in the East Midlands so I am rarely in such a position.  However I have bsuness use on my car insuarance and do indeeed run errands when I am on site.

Based on the sorts of figures mentioned I will ask the member of staff to check again.  I dont think his renewal starts until 30/07 so may still haev an opportunity to cancel and shop around.

If errands are run we always ask them to depart work early or arrive late to the actual errand is in work time.

Thanks again

Sandtree

J_B said:

My car is insured for "social, domestic and pleasure use, voluntary use, commuting and business use  ....."

I *think* the business bit cost about an extra £20 per year

But does your "business use" cover delivering parcels?

Most people buy class 1 business cover which doesn't include carrying goods and only covers business where the driving is incidental to the purpose of the trip... ie covers you to go over to another office for a half day workshop but wouldn't be appropriate for a travelling salesman where driving around is a key part of their work... for that class 3 is required.

Annisele

I think the actual position here might be that your staff are committing the criminal offence of driving without insurance. Taking a "who is going to know" position might work out fine for you, but if it does come unstuck it'll do so at the worst possible time (eg after somebody has been in a serious accident, and really doesn't need to be dealing with the police on top of everything else).

Depending on what your staff are picking up, even class 3 businesse use might not be enough; they might need commercial insurance. Picking up a roll of sellotape on the way home is one thing, but filling the entire back of your car with widgets on a regular basis is another. The cheap kind of "business cover" doesn't usually include transporting goods.

This is the kind of thing brokers can often help with - the devil is in the detail, and brokers are usually very much on top of those kinds of details.

Sandtree

Annisele said:

This is the kind of thing brokers can often help with - the devil is in the detail, and brokers are usually very much on top of those kinds of details.

Not in consumer Motor, 99% is unadvised sales even in brokers. Margins are far too thin, sales are often made at a loss and the hope is to make it back through referrals to credit hire etc

missile

I would avoid asking staff to collect goods in their own vehicle. For small items a taxi would be easier and safer. My local hospital uses taxis to collect and deliver.

MattMattMattUK

doningtonphil said:

Hello.
We are a limited company with no company vehicles.  Form time to ime local suppliers have items ready for us which it would be quicker for us to collect than await delivery.  What is the position regarding members of staff 'nipping in' on the way to or from work to collect/drop off items?
One member of staff asked about business cover on the standard SDP+commute policy and was quoted over £4000!.

I know there is a view of 'well who is going to know' but which level of cover would entirely cover such detours?  At times it would be handy for someone to 'nip out' during the day to get something so wont be part of their journey to/from home.  COuld these be covered too?

I hope you can help

Many thanks

I think that your employee either asked for the wrong thing, or has wider issues with their policy as adding business usage to a policy costs very little, the difference on my policy is around £15.