Transport logistics for business
Business vehicle insurance
If you or your employees use a vehicle for work, then by law you must take out motor insurance. Even if you use your own car, a private policy is not sufficient. It may even be invalidated if you use your vehicle for business purposes.
Your policy must cover:
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all vehicles owned by your business
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any employees' vehicles used for business
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fleet vehicles
Levels of insurance
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A class one policy covers a car for work and personal use.
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A class two policy covers other drivers who use your car for business purposes.
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A class three policy is for commercial travelling, ie travelling from place to place to look for customers.
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Commercial vehicle insurance covers a vehicle carrying goods or people specifically for business.
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Fleet insurance is generally available for a minimum of five vehicles. These can be a mixture of cars, light goods vehicles and heavy goods vehicles.
You need to check the licences of all your drivers. You must advise your insurers of any serious motor convictions or your insurance will be invalid.
You may need to consult an insurance broker about which types of insurance best meet your business needs. You can find a registered insurance broker on the Institute of Insurance Brokers (IIB) website - Opens in a new window or you can contact the Institute of Insurance Brokers Enquiry Line on Tel 01933 410 003.
Subjects covered in this guide
- Introduction
- Pros and cons of different modes of transport
- Distribution and logistics
- Using carriers or buying or leasing business vehicles
- Couriers, hauliers, freight forwarders and logistics services
- Vehicle licences
- Business vehicle insurance
- Transport management training courses
