If you are a courier, you will need insurance, and you need to be aware what is available and how it will work for you. Courier insurance is not a “one size fits all” type of insurance and there are a number of factors to take into consideration.
I have outlined some factors below to take into consideration when choosing courier insurance.
- Van and vehicle cover. Every vehicle on the road needs this type of cover at a minimum of third party cover. However if you are using a vehicle to convey goods then you will need business cover, and remember if your vehicle is off the road due to an accident, then fully comprehensive cover with a replacement vehicle while your own is being repaired means that you can keep any business losses to a minimum if you are involved in an accident. Accidents which are not your fault could easily put you out of business while you go through the long process of claiming from an insurance company. This type of insurance is a must for any Courier company using a motor vehicle.
- Goods in transit cover. You will need to have cover for the goods you are transporting. Make sure that your cover is adequate for what you are carrying, and will fully replace them if you need to make a claim. This type of cover needs to be tailor made to your goods, and remember if you are carrying confidential or sensitive material you will need to be covered in case of theft or delay, which could cause major problems for your customer. A simple rule of thumb is that the more valuable your goods, the more insurance you will need.
- Bicycle and motorbike cover. These types of courier have specific accidental risks and will need specific cover. A serious injury to a courier on a bike or motorbike can be disastrous for a company. This means that this type of insurance is more expensive than vehicle insurance and if it is not needed, it should not be part of a blanket policy.
- Public and employer’s liability insurance. You may need a policy to cover accidental injury or damages other than by motor vehicle. This is a fairly standard type of insurance for businesses.
- European cover. If your business requires you to travel in Europe make sure that your courier insurance covers this. Loss or damage to goods abroad can be disastrous.
- Breakdown cover. If your transport is unavailable or breaks down en route, then business losses are inevitable unless you are covered by insurance. A swift response is necessary to keep your vehicles on the road.
- Property cover, e.g. computers. Most companies manage their orders by computer, and can track packages en route. If you are dependent on computers then they need to be insured so that a failure doesn’t cost you money.
- Warehouse cover. If you store goods before and after they are in transit, then you need to ensure that they are covered by insurance wherever they are stored. A fire, flood, or other problem can be a major hazard.
Taking these considerations into account, you should be able to find courier insurance to fit all of your needs.