The North East’s quickest growing chauffeuring business, Eagle Chauffeuring, has issued a warning that many businesses providing driving services are not appropriately licenced or insured.
Following recent media coverage of Bedale’s Hansom Restaurant being ordered to stop offering customer transport due to licensing breaches, Eagle Chauffeuring has issued a public warning highlighting widespread misunderstandings around passenger transport licensing across multiple industries.
The company warns that many businesses offering transport services – whether for events, security, close protection, proms, funerals or hospitality – are unknowingly operating without the legally required licences and insurance.
Under UK law, any journey that provides a commercial benefit – even when no separate fee is charged for the transport – may legally constitute private hire work, requiring, a licensed private hire vehicle, a licensed driver, correct hire-and-reward insurance and the operator licensing through the relevant local authority.
Failure to meet these requirements can have serious consequences for both passengers and providers, including invalid insurance in the event of a crash or injury, vehicle seizures, points on the drivers licence and fines for the companies involved.
Babar Malik, CEO of Eagle Chauffeuring, said: “This case should serve as a wake-up call, for businesses and passengers.
“Everyone knows that some businesses offer lifts or ‘complimentary transport’ believing it’s harmless, but if there’s a commercial benefit, the law is very clear. If an unlicensed vehicle is involved in an accident, passengers may find themselves uninsured.
“In the worst cases, we know that vehicles have been seized at the roadside for invalid insurance, leaving passengers stranded en route to weddings, proms, funerals, or corporate events.
“Even people delivering for their own restaurant or takeaway are breaking the law. They falsely think they’re covered under business insurance but need a little known category called reward and carry insurance.
“Without the correct licensing and insurance, public liability, insurer cover, and passenger protection can all be invalidated, placing vulnerable passengers at risk and leaving businesses exposed to severe legal and financial penalties.”
