Car Insurance Business Use for VERY Short Trips

Manthatisripe · 20 September 2018 at 10:17PM

Hello, I own a business that runs birthday parties at weekends. We have on offer pizza afterwards, which a staff member has to collect from the shop (they cannot deliver, I know right?!).
Anyway one of my staff made the point that they would not pick it up because she does not have business insurance to allow her to do that.
I think she has a point however, if I insured her, she would only be one of potentially four different staff who may pick it up on a weekend.
Add to this the fact that the pizza place is only 0.3miles away - 0.6 mile round trip.
So the question is , do my staff need business insurance still for a journey that they may take once a week and is only very short or is there a minimal allowance on car insurances?
I got a few quotes for Social, social & commute and social & business today and the lowest quoted annual miles I could enter was 500 miles which is high and unrealistic.
Can anyone give me some advice on how to approach this best? (They can’t walk as it is a busy workplace and it takes too long).

noh · 20 September 2018 at 11:07PM

Manthatisripe wrote: »

......................... (They can’t walk as it is a busy workplace and it takes too long).

0.3 miles each way is 6 minutes walking.
12 minutes there and back.
How many minutes are saved by driving?

unforeseen · 21 September 2018 at 5:55AM

To answer your question on whether they need business insurance for a short trip then the answer is yes.

It's not rocket science. Use the car for business? Then you need business cover. It sounds like you haven't fully thought out your business plan.

2nd_Time_Lucky · 21 September 2018 at 6:08AM

book a local taxi firm to collect for you

Nick_C · 21 September 2018 at 6:50AM

I have business insurance on my car. I use it one day every couple of years for work.

Churchill charged me a £15 admin fee to add business use. The ongoing cost is the same whether I have business use or not.

You should tell your staff to get cover for business use and make it a condition of working for you.

trailingspouse · 21 September 2018 at 8:35AM

You can't insure her (I'm assuming you don't provide a car for her). She would have to increase her own insurance to include business use. You could, however, agree to reimburse her the increase in her premium.
If you have business use on your own car, could you extend it to cover any driver/named drivers, so they could take your car instead of their own?
Or use a different pizza provider, that will deliver?

Dangermac · 22 September 2018 at 1:39PM

Manthatisripe wrote: »

Hello, I own a business that runs birthday parties at weekends. We have on offer pizza afterwards, which a staff member has to collect from the shop (they cannot deliver, I know right?!).
Anyway one of my staff made the point that they would not pick it up because she does not have business insurance to allow her to do that.
I think she has a point however, if I insured her, she would only be one of potentially four different staff who may pick it up on a weekend.
Add to this the fact that the pizza place is only 0.3miles away - 0.6 mile round trip.
So the question is , do my staff need business insurance still for a journey that they may take once a week and is only very short or is there a minimal allowance on car insurances?
I got a few quotes for Social, social & commute and social & business today and the lowest quoted annual miles I could enter was 500 miles which is high and unrealistic.
Can anyone give me some advice on how to approach this best? (They can’t walk as it is a busy workplace and it takes too long).

If your employee is covered for Social, Domestic & Pleasure + commuting, they will not be covered to collect/deliver the pizza. This will require some kind of business use insurance.

There may be little difference in premium - depending on the insurer/policy/details

Please also bear in mind that, as the business owner, you have a potential liability for your employees driving on behalf of the business. So, if they are not covered for business use, they are potentially at risk.....and so are you.

Yes, unlikely an accident may happen. And yes, it's a very short journey. And some people may be tempted to take the risk. But if a serious incident occurred, the true reason for the journey would become clear, and there would be no hiding place.

Slightly confused at the OP's comments that to walk 0.3 of a mile would take too long. Should only take 10 minutes there and back.

DM

agrinnall · 23 September 2018 at 9:25AM

No insurer has every charged me any extra to include business cover (class 1, see below) but if it's a mid-term change there may be an admin charge depending on the insurer. Check to make sure the correct class of cover is requested:

https://www.moneysupermarket.com/car-insurance/business-cars/

Alternatively, you could order the pizza from someone who does deliver, or you could encourage the pizza place you use to join the lives of Just Eat or Deliveroo.

trailingspouse · 23 September 2018 at 9:47AM

Class 1 is usually free. But I think the OP would need something more. Class 1 just covers you for going from A to B for business (eg for a meeting), but in the OPs case they would be (effectively) carrying stock I think. And what if someone else hops into the car with them to help carry? I think carrying passengers as part of the business is another issue again.

Much simpler to get the pizzas delivered!!

paddyandstumpy · 23 September 2018 at 10:25AM

Class 1 is adequate, it's travel in connection with the business.

The fact they carry stock/pizza is irrelevant, imagine a travelling salesman. Class 1 would be fine there.

The fact they may carry colleagues is again irrelevant, imaging said travelling salesman picking a colleague up from the station on way to said meeting. Again, Class 1 is fine.

Car Insurance Business Use for VERY Short Trips

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