What Is Haulage Insurance?
Haulage Insurance (or HGV Insurance) is a cover specially designed for owner/operators of single or multiple HGVs (Heavy Goods Vehicles). The policy covers haulage businesses for transporting cargo (Goods in Transit cover), Vehicle(s) (Lorry Insurance), and Liabilities Insurance.
Who needs Haulage Insurance?
Haulage Insurance is designed for companies focused on long-distance, often single-drop jobs instead of multi-drop deliveries. It can cover a range of transportation companies, including:
- HGV fleet operators
- Owner-drivers
- Logistics and freight businesses
- Specialist hauliers (ADR, hazardous goods, refrigerated and perishable goods, and abnormal loads)
What Cover do Hauliers legally need?
If you operate a vehicle in the UK, you must have a minimum of Third-Party only insurance, which makes you compliant with the Road Traffic Act 1988 (RTA).
Employers’ Liability Insurance
This is a legal requirement in the UK if you employ people to help run your haulage business.
Operator licence insurance requirements
Referred to as an Operator’s Licence, an O-licence is required by law for businesses that use vehicles over 3.5 tonnes.1 People that hold an O-licence also need Haulage Insurance.
O-licence financial standing
As an owner/operator of a haulage & logistics company, you’re required by law to be in good financial standing so that you have the appropriate level of financial resources to keep your fleet or vehicle in good working order (ensuring road safety and compliance).
Your Operator’s Licence depends on you remaining continuously financially solvent at the correct level. The Office of the Traffic Commissioner is responsible for updating the figures on an annual basis. More information on financial levels for HGVs can be found on the GOV.UK website.
Core Covers explained
The main elements of an HGV Insurance policy are:
- Motor cover
- Goods in Transit cover
- Liabilities cover
Any vehicle over 3.5 tonnes is required by UK law to be covered by HGV Insurance.2 Insurance for vehicles falls into three categories:
1. Comprehensive
This insurance covers your own vehicle for damage (regardless of who is at fault), fire and theft. It also insures you for damage to a third party (the vehicle or the person). The policy won’t usually cover wear and tear to the vehicle or mechanical breakdown, although we can add Breakdown cover to your policy.
2. Third-Party, Fire, and Theft (TPFT)
This policy insures you for damage to another person or vehicle. It will not cover damage to your vehicle following a road traffic incident but will insure it for fire and theft.
3. Third-Party Only (TPO)
This cover only insures you for damage to a third-party (the vehicle or the person). TPO is the minimum level of cover needed to stay legally compliant in the UK.
When you’re taking out an HGV policy with any broker or insurer, it’s important you’re clear about the usage of your HGV vehicle or Fleet. At RHAIS, our advisers will focus on getting a thorough understanding of your haulage business and source an appropriate policy to suit your needs.
Goods in Transit (GIT) Insurance
This insurance covers cargo around theft, loss, and damage whilst in transit (although there may be a limit to the cover amount). It’s not a legal requirement in the UK but is a requirement in some areas of Europe under international law. When it comes to business operations, customers usually require you to have GIT cover as part of your contractual obligations. Put simply, it can make or break a business deal. GIT Insurance can protect you during transit and during the loading and unloading process.
Public Liability Insurance covers you for claims made by a third-party following injury or property damage caused by your business operations. Common scenarios include injury to personnel during loading or unloading, or damage to a building following a road traffic incident. The insurance will cover you for defence costs, legal fees, and compensation claims you’re liable for (although there may be a limit to the cover amount).
Employers’ Liability Insurance
This insurance is a legal requirement in the UK if you employ people to assist with running your haulage business. It can cover drivers, admin staff, mechanics, and anyone else working at your company for claims made by employees around injury or illness caused by work-related activities. Like Public Liability Insurance, this cover can pay for legal fees and compensation claims should you be found liable (although there may be a limit to the cover amount). If you’re a sole trader but employ subcontractors, part-time labour, or casual staff, you might still need Employers’ Liability Insurance.
Trailer cover
This cover can be part of your policy depending on whether the trailer is owned by your business or hired in / borrowed. Third-party liability cover is important and can often be part of your HGV Motor Insurance. However, this can vary from policy to policy so discussing your trailer usage with the RHAIS team means you’ll get the cover you need to stay protected. We can get your trailer(s) insured for various events including physical damage to the trailer and theft and vandalism.
Legal expenses
If a lawsuit or claim is made against you, legal fees and defence costs can quickly add up leaving you with a large bill. This cover can pay for legal fees related to legal disputes (although there may be a limit to the cover amount), making it a useful addition to your Haulage Insurance.
ADR Haulage Insurance
ADR is the European Agreement for the International carriage of Dangerous Goods by Road. This concerns haulage and logistics companies who transport hazardous goods across international borders. ADR Haulage Insurance is a specialised policy which covers high-risk transportation of toxic and dangerous substances.
Risks can include spills, contamination, and environmental clean-up. If your company is involved in ADR haulage, talk to the RHAIS team. We can arrange a policy which specifically covers you for this haulage activity.
How much does Haulage Insurance cost in 2026?
As an approximate guide you’ll be looking at paying more premium the larger the vehicle. Other aspects considered by insurers include age, value, condition, and usage of the vehicle(s), plus driving experience, claims history, and the type of cargo carried.
Fleet Haulage Insurance can work out cheaper per vehicle although again, this will depend on driver performance and experience, claims history, the type and weight of your vehicles, plus the type of goods you carry and routes you take. As well as being potentially cost-effective, this cover also gives you added benefits of having all your vehicles under one policy, reducing admin time and making renewals and reviews more efficient.
Specialist haulage risks
Inflation and supply chain issues have seen price increases in labour and vehicle parts. Added to this is the responsibility on haulage companies to ensure road safety which in turn has exposed them to higher, more expensive liability claims. Extreme weather conditions haven’t helped with Haulage Insurance costs either, putting vehicles under strain and creating the ‘perfect storm’ for increased insurance costs.
Higher rates of cargo theft combined with a lack of safe and secure parking and rest facilities can also drive-up insurance premiums, plus heavy volumes of traffic on roads can make driving potentially hazardous, increasing the likelihood of accidents and wear and tear to HGVs.
How we can help
With years of providing specialised insurance for a wide range of commercial vehicle and transportation businesses, RHAIS is your go-to expert. If you own or operate a haulage and logistics company and need a new quote or a review of your existing cover, get in touch.
Speak to our Haulage Insurance specialists
Call: 020 3960 2944
Click for a Quote: https://rhainsuranceservices.uk.net/motor-fleet-truck-insurance/
