Hire and Reward Insurance For Distributors

Distributors need to carry goods which are often valuable and having them damaged or stolen can be a disaster. This is why the right insurance is vital for any distribution group.

The goods themselves can be covered by Goods in transit insurance but that is not where the insurance liabilities of the carrier ends. Insurance for hire and reward is a vital, and legally mandatory, addition to the portfolio.

This requirement is necessary even if the items carried are very small and there are different policies and premiums dependent upon the type of product carried. As an example, a taxi driver with adequate taxi insurance (a form of hire and reward insurance) would, technically, be uninsured if he or she, after dropping a passenger off, went off to collect a takeout meal for that passenger! It is fairly likely that delivering hot food would not be covered under the taxi insurance policy and that could lead to a huge fine and six driving licence penalty points, as well as possible impoundment of the taxi.

This may seem draconian but the law is clear; driving without insurance is a serious offence, and insurance companies, mindful of the risks of claims that carrying other people's goods can create (delivering to unfamiliar locations, time pressures to keep up with schedules, necessity to sometimes drive in very adverse weather conditions) are perfectly entitled to stipulate exactly what type of goods can be carried, and under what circumstances. Most of them do precisely that.

For these reasons it is highly advisable for anyone carring goods for hire or reward to get advice from a qualified insurer or broker who is familiar with this type of insurance. Failure to do so, resulting in a wrongly specified policy being taken out, could have disastrous consequences.

Call our energy experts today on 0845 643 2528 or send us an online enquiry to discuss your requirements in more detail.




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