There are many things that you will need in place if you have an HGV business, but one of the most important ones is insurance. Making sure that everything and everyone is protected should the worst happen could be a lifesaver not only for your business but for someone else’s too.

However, there are a lot of options out there when it comes to HGV insurance, with a wide variety of add-ons for you to sift through, so how do you know what it is that you really need?

There are a lot of considerations when it comes to HGV insurance, as you will need a policy that covers everything that you need but is also manageable for your business when it comes to the cost.

In this article, Walker Movements, specialists in used trucks for sale, take a look at the different types of HGV insurance that are currently on the market to help you understand which ones your business might need and which ones you probably don’t.

What is HGV insurance?

Every truck or lorry that operates on UK roads needs to be covered by insurance at some level. In the event of an accident, it can ensure that you are protected from claims made by other road users for damage or injury if the accident was the fault of the truck driver. There is specific insurance available for HGV’s that is aimed specifically at the commercial sector, and there are deals available that can cover entire fleets.

HGV insurance policies

Generally speaking, HGV insurance policies can be split into Third Party, Fire and Theft (TPFT) and comprehensive cover, much like you would expect for your car.

Third party cover is the absolute minimum that any HGV on the roads should have in place. It will provide cover if another vehicle is damaged or written off in an accident where the HGV driver is at least partly to blame, or if property has been damaged, which has a statutory minimum limit of £1.2 million. Third party cover will also offer protection in the event that someone else is injured, the truck is damaged or destroyed by fire or in the event that the truck is stolen or damaged as a result of theft.

As you might expect, comprehensive policies offer a lot more, including greater levels of cover for your vehicle and driver, no matter whose fault it might have been.

As the HGV business has a lot more to consider, there are also other policy add-ons that you might want to consider. For example, you might want to choose where you have your vehicle repaired if it is needed or include assistance with the removal of debris after an accident.

Some policies will also offer you the choice of covering the cost of towing a broken down or damaged truck after an accident. In some cases, you may also be able to add options to change or replace locks and keys as well as looking at ways in which you can get the truck returned to you after it has been stolen.

It is important to remember that every insurance policy is different. Some of these items might be included as standard, whilst others will be chargeable or not available at all. You should make sure that you read any insurance policy and ask the right questions before signing on the dotted line to ensure that you are covered in the way that you need.

It is important to remember that you will need an operator’s license for vehicles over 3.5 tonnes in weight, and it can take up to nine weeks to apply for this. Your drivers will all need to hold valid licenses for the vehicles that they will be in charge of, and you should make a note of the number of years that they have held the license, the operating area, and any no claims that they may hold. Only when all of this is in place will you be able to make an application for an insurance policy.

Other insurance additions

Most insurance companies have a list of options that you can add on according to how your business is run. For example, you may need to add cover for trips to mainland Europe or the Republic of Ireland if you transport goods overseas.

When you think about all of the things that could go wrong, you need to also consider your transport. Should your vehicle become involved in an accident or is stolen, you may need to have cover in place for the cargo that it was carrying, otherwise you might find yourself liable for the cost. Paying out for this can have a massive income on your livelihood, and a failure to cover it could have devastating consequences for your customer.

Legal protection cover tends to be another popular option as this can help to cover legal and court fees should you take another motorist to court. In addition to this, public liability protection will cover the cost of defending any claims made by a member of the public or a customer.

The type of goods that you carry may also influence your insurance choices, as there are options for hazardous goods cover if you are required to transport anything that might be considered to be a dangerous load.

A broken-down truck can be your worst nightmare, and so many insurance companies now also offer breakdown cover for your HGV to ensure that your truck can be rescued and taken somewhere where it can be repaired when it goes wrong.

What do I need?

There are a lot of different options out there and including all of them can add up to a hefty sum, especially if you have more than one truck to take care of. You need to ensure that any insurance policy that you take out is suitable for either haulage or carriage of goods.

Haulage means you work with a single pick up and drop off point, whilst carriage of goods involves several drop off points. Your insurance policy might make this distinction, so you need to check that the terms and conditions suit the way that you run your business.

You will also need to make sure that the cover is appropriate for the type of vehicles that you use. Light goods vehicles (LGVs) such as pick-up trucks and vans have a maximum gross weight of 3.5 tonnes and can include passengers as well as cargo and fuel. An HGV will have a gross weight of between 3.5 and 7.5 tonnes so you will need to be sure that your policy covers the right category of vehicle.

If you have recovery trucks on your books, these will need to be insured as well. This often requires specialist insurance because of the different type of job that they do.

Fleet insurance

If you have multiple vehicles, then it may be worthwhile looking into fleet insurance. Whilst each type of cover will vary, fleet insurance can cover a minimum of two vehicles. You will need to declare exactly how many trucks and trailers you have and list them all on the policy in order for them to be covered. You may also have trailers which can be covered on an unspecified basis – this can be the case if you are towing a trailer that is not directly yours, such as one that has been borrowed or hired.

Fleet policies may only cover drivers who are above a particular age, so you will need to check that all of your drivers are covered.

HGV insurance costs

There will be a number of factors that impact on the cost of your HGV insurance, such as the number of vehicles that you need to cover and the geographical radius that you operate within. You may also find that the age, experience, and history of your drivers could be a factor.

Fleet insurance can be a more cost-effective option for those who have more than one vehicle, as discounted deals tend to be offered for multiple vehicles.

The cost of your insurance can also be impacted by the driving record of your drivers – as those who do not have convictions or penalties will be cheaper. You may also be offered the option to install cameras and black boxes in your vehicles which can track how safe your drivers are and reduce the cost of your policy.

As with any insurance policy, it is important that you read the small print carefully. You do not want to be in the situation of needing to make a claim and discovering that you are not covered adequately or that your policy is invalid. Start the process by making a note of all of the things that you need on your insurance policy, and then begin shopping around.

You will soon be able to eliminate providers who do not offer the things that you need, and you can narrow down your options to find something that is both comprehensive and competitively priced.