Removals – Pivoting Your Fleet Business

Removals – Pivoting Your Fleet Business

With UK house prices set to be slashed by 30 percent for first time buyers and the £3.8bn stamp duty giveaway unveiled by chancellor Rishi Sunak already sparking a mini property boom in the southern England commuter belt, it should be a prosperous time for removal companies. For anyone in the trade or for those considering pivoting their business, it’s worth looking at the van removal insurance protections to safeguard your business.

According to leading real estate website Rightmove asking prices for larger homes have hit record highs as increasing numbers of house buyers look to upsize. Overall, prices have remained steady since reaching a peak in July with the average UK property price now £319,996 - up by 0.2 percent from August and by 5 percent year-on-year. Provisional data from HM Revenue and Customs (HMRC) shows that more than 70,000 property sales went through in July.

On the Move

Property markets across the UK have now reopened, meaning estate agents are conducting in-person house viewings again and buyers are able to move home once more. And the temporary cut in stamp duty means that buyers could potentially save up to £15,000 in tax if they move home before April 2021.

A recent feature from real estate property resource Zoopla shows that more than 30 percent of buyers and renters anticipate working from home more often in the future and that demand for countryside properties has risen by 80 percent.  According to the British Association of Removers (BAR), the trade body representing the UK removals business, its members carry out more than 280,000 UK home moves in the UK every year.

Van Removal Insurance

If you intend to pivot your existing fleet business into the area of removals, you will still need appropriate van fleet insurance to drive your vans on UK roads. Commercial van insurance cover is necessary if you use your van for work or business.

As well as deciding which form of commercial van insurance you need, you’ll also be required to select a basic level of cover too. It’s like any other form of van cover in that you need to pick between third party only, third party, fire and theft and comprehensive cover. 

Goods in Transit Insurance

Changing your business model to removals means that there are particular risks associated with this type of work where your contents could be lost, stolen or damaged in transit, especially if you’re visiting an assortment of locations, often in a hurry or against deadline. Your policy should also protect you against the risks you pose to other road users as well as their vehicles, property and persons.

Goods in transit insurance is essential and covers items from theft, loss or damage while they are being transported by your vehicles from one place to another in the course of business. Remember that some van insurance policies can include an element of goods in transit cover, but only up to a certain value. While it may be enough for items of lower value, transporting someone’s worldly goods means you are likely to need a policy with increased protection.  

While there is no law to enforce that you have goods in transit insurance cover, it is vital and it is unlikely a customer or company will employ you unless you can prove adequate goods in transit cover is in place.

Public Liability Insurance

It’s important to protect your company with public liability insurance in case someone injures themselves on your premises or in connection with your business and it’s deemed to be your fault. It also covers negligence that may have led to someone’s property being damaged.

If a claim is made against your business, an injured customer could be entitled to a considerable sum of money. A comprehensive policy will include cover for personal injury, compensation claims and legal fees.

Professional Indemnity Insurance is also worth considering as it will cover you for costs you might incur if your work or advice causes a customer to suffer a loss of some kind.

Other news

While premiums for convicted drivers may be higher, due to increased risk, this guide provides more information on how we can support convicted drivers in operating safely and legally in the motor trade.

While Fleet insurance is ideal for businesses managing diverse vehicle fleets, motor trade insurance is best suited for those in the motor trade industry, covering activities like vehicle sales, repairs, and servicing. Read our latest guide to discover which policy is right for you.