When working as a self-employed lorry driver, you need to take out the right insurance. That’s why this article will provide you with the relevant information about each type of insurance you may need. 

For more information about becoming a self-employed lorry driver in the first place, see how to become an HGV driver.

The topics covered in this article include:

  • Types of insurance for self-employed lorry drivers
  • Goods in transit insurance
  • Truck/HGV insurance
  • Trailer insurance
  • Employer’s liability insurance
  • Public liability insurance
  • Business equipment and tools insurance
  • Self-employed insurance

Types of insurance for self-employed lorry drivers

According to HGV Alliance, it is infrequent for a lorry driver to be legally self-employed unless they are also an ‘owner-driver’.

Owner driver — usually a sole trader who provides the lorry and transportation service.

It that is the case, you may also require:

  • Goods in transit insurance
  • Truck insurance
  • Trailer insurance

If you eventually hire your first employee, you will also need:

  • Employers liability insurance

It is also wise to take out:

  • Public liability insurance
  • Business equipment and tools insurance

Alternatively, you could cover both public liability insurance and business equipment and tools insurance under:

  • Self-employed insurance

Let us take a look at each insurance cover to give you a better idea of what they are and how they work.

Goods in transit insurance

Goods in transit insurance (GIT insurance) is vital for any business transporting goods. It provides cover if those goods are damaged, destroyed, lost, stolen, delayed or incorrectly delivered. 

It essentially provides the courier with legal cover for all its cargo. Without it, there could be huge costs for any self-employed driver who loses the goods they transport. 

Truck/HGV insurance

Just like your personal car, you cannot drive a lorry on the road legally without insurance. According to the UK Government, the penalties for uninsured drivers could be:

  • A fixed penalty of £300 and 6 points on your license when caught by police.
  • If the case also goes to court, you could receive an unlimited fine and a ban from driving.
  • Police also can seize the vehicle.

As a self-employed lorry driver, driving and having a vehicle are the most critical elements of your business. Without either or especially both, you would no longer be able to operate. 

Trailer insurance

Cover for the trailer itself. It covers any damage to the trailer and any damage it causes. In case of any accidents attributed to the trailer, you should consider the cover to ensure legal protection.

Public liability insurance

Ensures that your business is covered against any legal action that could be viewed as a result of your practices. This cover provides protection against:

  • Injury to clients or members of the public
  • Property damage

Taking our public liability insurance means that if legal proceedings are brought against your business, your insurer would pay your expenses and any compensation to the other party.

Let us look at an example for a self-employed lorry driver. Say, you pull into a petrol station and accidentally drive into another person’s car. More than likely, they would try to get compensation for repairing the damages. If you have taken out public liability insurance, the costs and compensation would come from the insurer.

For public liability insurance starting from £5, visit Superscript.

For more information see how much does public liability cost?, who needs public liability insurance? or how to get liability insurance for a small business.

Business equipment and tools insurance

Being a self-employed lorry driver may require you to use additional equipment in your business. For example, you may keep expensive tools in the lorry that would allow you to fix it if you break down. 

That equipment could become damaged, stolen or lost, in which case, business equipment and tools insurance would allow you to replace it. Losing high-value equipment could become a costly scenario, so make sure you consider this insurance.

Superscript also provides business equipment insurance starting from £5.23 a month

Self-employed insurance

Cover is tailored to those who work for themselves. It features the protection of public liability insurance and business equipment insurance. 

In addition, it self-employed insurance covers:

  • Professional indemnity cover — if any professional advice you give out does not go well for the client and leads to a lawsuit. For more information see what is professional indemnity insurance?
  • Cyber insurance — in case any personal information you hold is breached.

Superscript offers this cover, and the customisable policies start from £5 a month.

Employer’s liability insurance

If you ever do employ anyone else in your business, you need employers liability insurance, even if it is one other employee. It is a legal requirement to have this cover. The Health and Safety Executive is an independent regulator and can fine your business £2,500 for every day you trade without insurance. 

You can also be fined for covering but failing to display your employer’s liability certificate. In addition to the legal requirement of having employers liability insurance, it also provides some essential legal cover. For example, it provides you with cover in the case of an employee claiming a work-related injury or illness. 

The innovative insurance provider Superscript provides employers liability insurance starting from £5.35 a month.

For more information on what to do if someone makes a claim against you, see insurance claim against me: how does it work?

Keep your finances protected

Financial management can be stressful and time-consuming when you’re a self-employed lorry driver. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Start your three-month free trial today. 

Find out more here.