The way we shop and do business is changing at a rapid pace. Online shopping is increasing year-on-year by 5.6% and according to the Office of National Statistics online sales as a proportion of all retailing in December 2019 was 19%, writes Diane Johnston, Commercial Operations Manager, Autoline
It all means more deliveries are being made via road, rail, air and sea. And this trend will only increase as trials continue into drone delivery systems.
For example, the number of firms using an HGV Standard International (SI) Operator Licence in Great Britain increased from 8,186 in 2016-17 to 8,351 in 2017- 18. It is certainly a busy period for hauliers.
Figures from the Government’s Committee on Climate Change also show there has been an increase in van travel of 26 billion kilometres since online shopping began in 2000.
It’s thought online retail parcel deliveries account for six billion kilometres of this increase.
More businesses are also relying on central logistics hubs to source stock instead of carrying a large number of items themselves.
These hauliers could be carrying goods worth tens of thousands of pounds therefore Goods in Transit insurance policies could prove vital for the companies who operate the services.
Goods in Transit policies are in addition to commercial vehicle insurance which covers the vehicle itself. Goods in Transit policies cover the contents of the vehicle.
These policies aren’t required by law, however as the marketplace becomes more crowded, it will be the companies who provide this level of cover who stand out. Some companies already ask for Goods in Transit polices from their couriers before signing contracts with them.
With no definitive clarity around free movement in a post-Brexit world and the increasing prospect of delays at the border, Goods in Transit policies make great sense for haulage companies transporting food from the EU.
The policies also make sense for a number of other businesses and not just delivery services.
They also make sound financial business sense for removal companies, motor trade and vehicle recovery businesses.
These policies are also advised for businesses operating between multiple bases.
It is important that you understand the various options available making sure you have right combination for your specific business type.
For example, Goods in Transport policies can sometimes be included in your package – office, shop and commercial combined policies at standard levels. Although the advice is to speak to your broker to ensure you have the right level of cover.
Whether you are a new customer with us or you are renewing your insurance with us, our expert business advisors will help ensure you have the cover you need for your whole business.
You don’t need to be an insurance expert either, we will keep you right and explain which additional benefits might be suitable to boost your vehicle and wider business cover.
To find out more about how Autoline can help your business visit www.autoline.co.uk
