Running a courier service can be complicated. Unfortunately, it’s not as easy as buying a van, finding work and making a profit. You also have to consider the other obligations that go with courier work, and one of those obligations is insurance.
You will need courier insurance in order to run your business. This should be considered for any business that carries goods for hire and reward on a multi-drop basis. You are not just transporting your own goods or carrying goods to be sold elsewhere – you are responsible for keeping other people’s possessions safe and delivering them directly. This means you will require more than a standard insurance policy.
As with any type of insurance, there are a number of courier insurance options you can choose from. You will need to decide between third party and comprehensive cover. You will also have the option of adding named drivers or having an “any driver” policy, depending on how many drivers work for your courier company. Other options include glass cover, legal costs, the level of excess, a protected no claims discount (NCD), and a replacement vehicle in case of breakdown. You may decide you would rather pay extra to guarantee a replacement vehicle rather than lose money on downtime.
It may be cheaper to take out a policy for light haulage rather than courier insurance, although not all companies offer light haulier insurance. Light haulier insurance often restricts the number of loads you can carry in a day, and some policies may limit cover to pre-booked jobs. Certain transport companies prefer to give work to drivers with courier insurance rather than light haulier insurance, so it is worth asking around before making your decision. Whatever insurance option you choose, always do your research and check the wording of the policy for any exclusions. Make sure you are covered for the all the courier jobs you intend to do.