Car insurance- staff running errands

Sandtree

sevenhills said:

When I renewed my car insurance last year, they added business use for nothing. I drive a vehicle transporting passengers for a local authority.

I don't believe I would be able to transport passengers, but that is what 'my business is.

I just renewed it today, £290

You may be in for a nasty shock in the event of an accident

MattMattMattUK

Sandtree said:

MattMattMattUK said:

Sandtree said:

MattMattMattUK said:

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. 

And does that you delivering/collecting goods @mattmattmattuk as thats is what is going to be hitting the costs

As an occasional part of business, not as my main usage. I can not operate as a courier, if I pick up a box, run something to a client in a rush, take items to a meeting (although in person meetings still seem a long way off) etc. 

Business use provides cover for driving in connection with a business or employment. Your certificate of motor insurance will show if your policy includes business use and the type of business use you have.

On the policy, under the "The Policy Covers:", the relevant section says "use by the Policyholder in connection with the business of the Policyholder" and that business is listed as "Company Director - Proprietor / Consultant - Marketing / Consultant - Film & TV Production". The occasional delivering or collection to or from a customer or supplier easily falls under that definition, but I would not try to argue that daily deliveries would.

Who's the policy with?

If you look at the Direct Line wording it is similar but if you go down further into the general exclusions it states:

 To goods carried for hire or reward.

There are no carve outs for the section so even if you have business class on the policy you are still prohibited on carry goods if your being paid to do so. The employees don't own the goods and are being paid to transport them.

I am with Direct line, but I can not find the exclusion you mention, the only one I can find is "This policy does not cover: use for hire and reward", however I would not see picking something up from a supplier, or dropping the occasional item at a client as "hire and reward".

martindow

'Goods carried for hire or reward' implies that the driver is charging a fee to carry out the delivery.  I don't think that this is the case for an individual dropping off items at a post office for example.

Mistral001

The employee was being asked to deliver items and that is surely different to the business insurance that most of us who own businesses have for our own car for say driving to see a client etc.  Some business owners will take a chance and make deliveries in their own car with only the minimal business cover thinking that they can say they were just going to see a client when an accident happens.  An employ will probably not be prepared to lie in the same way and cannot be expected to do so.  

Sandtree

martindow said:

'Goods carried for hire or reward' implies that the driver is charging a fee to carry out the delivery.  I don't think that this is the case for an individual dropping off items at a post office for example.

So the last time you had a parcel with DHL you paid the driver themselves? Many will be employees on a salary but that doesnt mean their work isnt hire and reward.