Courier Insurance: What It Is & Why You Need It
Do you run a business that moves goods and packages for customers? If you answered yes, then it’s essential you are protected by courier insurance.
If you’re not sure what courier insurance is, then you’ve come to the right place. In this article, we’ll take a look at what this type of insurance is, what it covers and more.
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What is Courier Insurance?
Courier insurance protects you while you work. Think about this for a minute. You’re busy delivering goods and parcels to many people in a relatively short amount of time. If you’re in a hurry, it’s easy to make a mistake.
What would happen if the vehicle you’re driving was in an accident? What if it was stolen? And finally, what if the goods you’re transporting were damaged or even stolen? These are the types of issues that courier insurance is meant to cover.
Courier insurance protects you and it may also include protection for the goods you transport against theft, damage and loss. Not only that, but this type of insurance protects those on the road with you, too. It works to protect their vehicles, property and themselves.
Courier insurance can also cover you if drive your own personal vehicle to deliver goods and parcels.
How Does Courier Van Insurance Work?
Because each courier service business has different requirements, it’s a good idea to contact an insurance professional who has knowledge and experience with this type of insurance coverage. Rather than buying a single policy, you’ll need to work with the insurance provider to create a package of options that provide the coverage your unique business requires.
Here are some things to consider when looking to buy courier insurance cover:
- Do you need the policy in your name or in your company’s name?
- How many vehicles do you need to insure? (If you have 5 or more vehicles, then you may want to take a look at fleet insurance. It may be cheaper to insure all the vehicles under one plan, rather than individually).
- Do you want your no claims bonus protected or unprotected?
- What type of goods do you transport?
Levels of Courier Insurance Coverage Available
You can choose from three different levels of courier insurance including:
- Third-party only (TPO): this is the minimum amount of insurance you’re legally required to carry. TPO insurance covers third party liabilities if you’re found at fault in an accident. Third-party only pays out if a person’s vehicle, the property is damaged, or if they and other people are hurt. However, this type of insurance will not cover damage to your vehicle or payout for any medical treatment you may need if hurt in an accident.
- Third-Party Fire & Theft (TPFT): this provides coverage for the same things as TPO, but also protects your vehicle against fire and theft. However, if you’re hurt, this type of coverage will not pay out for medical bills.
- Comprehensive: this type of coverage is the same as TPFT, but it protects both you and your vehicle. This is the best level of courier insurance to have; however, it’s also the most expensive.
If you run courier business and have up to 5 vehicles, then you’ll need to pay for courier insurance for each vehicle. However, if you have 6 or more delivery vehicles, then it would be better to buy van or fleet courier insurance. This will save you money while ensuring your entire fleet is properly protected.
Will You Need Additional Coverage?
You may need additional coverage, depending on the type of courier services you provide. You may want to consider these types of add-on coverage to fully protect your courier business:
- Excess protection: will protect your excess if you’re found at fault in an accident.
- Employer’s liability: if you have employees, you’re legally required to have this type of coverage. This add-on protects your employees in the event they are injured or become ill while working for you.
- Public liability: this add-on provides protection if you are required to pay compensation due to a legal liability such as damage to third-party property, death or injury to a third-party.
- Goods in transit: provides protection for couriers in case of loss, damage, or theft of goods and parcels in transit.
- Breakdown coverage: if one of your vehicles breaks down, this coverage will send roadside assistance to get you moving again.
In addition, some insurers may also be able to provide some other types of coverage for your courier business including:
- Drivers aged 25 and above
- Uninsured loss recovery
- Accident recovery
Things to Keep in Mind About Courier Insurance
Each insurance provider’s policy will vary, so be sure to pay attention to the details of the coverage before you buy the insurance. It’s always recommended that you read through all the insurance documents before buying a policy.
This way you’ll make sure you have the right coverage and know exactly what’s covered or not.
Do You Need Courier Insurance?
If you’re providing courier services and transporting goods from a business to a customer for payment, then you’ll need to buy courier insurance.
How Do I Find an Affordable Courier Insurance Policy?
When searching for the right insurance provider, it’s always a good idea to use a comparison site to find the best prices for the type of coverage you need.
For instance, some insurance policies may pay for parcels and goods if they’re locked in your van overnight, and then damaged or stolen. However, keep in mind this will probably be more expensive.
Using an insurance comparison tool can make finding the right insurance and insurer much easier and faster. You’ll find the best policy for your business at an affordable price. In fact, it’s always a good idea to make a list of at least three insurers that look like they may have policies that are a good fit. Then before buying a policy, call each one and discuss the different aspects of your business, the type of policy you may need and then ask for specific quotes on packages they may be able to offer.
Be sure to also inquire about the annual price of the policy, the cost of the excess fee, and any other add-ons that you may be interested in. Use this same method with each insurer, and you’ll find the best insurance policy, at the right price, for your courier business.