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COURIER INSURANCE

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Ultimate Guide to Courier Insurance

In recent years, there has been a huge increase in the number of people using popular online shopping services like eBay and Amazon. This has resulted in a large demand for delivery drivers, meaning more people have chosen being a courier driver as their profession. Not only is it a straightforward and enjoyable role, it also provides people with the flexibility of becoming self – employed – a position that many individuals favour.

As with most jobs however, delivering parcels as a courier is not that simple and there are certain steps you will need to take to ensure you, your vehicle and your cargo are legally protected on the road, should something go wrong.

We understand that choosing the right cover can be a confusing and somewhat stressful task, so we have put together an online Courier Insurance guide to help make things easier.

Read our couriers guide to insurance and you can be confident in knowing what to look for when choosing the best policy for you.

Once you have the knowledge that you need, head over to our quotation tool where you can compare courier insurance quotes today.


What is a Courier Insurance?

If your work involves the transport of goods, you will need a specialist courier insurance policy which will protect you, your vehicle and the goods you are transporting. Your work may involve delivering clients packages all over the country, meaning you will spend more time on the road than an average driver.

This means you will have greater exposure to risk and so most standard insurance policies may not provide you with the right level of protection. This is where courier insurance comes into play and we can help you find the best deals.

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Why do I need Courier Insurance?

Courier insurance is important as it is specifically designed to cover you if your vehicle or cargo is lost, stolen or damaged in transit.

The packages you may be responsible for could hold a lot of value, so in an unfortunate event where your packages or even your vehicle get stolen, you want to know they are protected otherwise you, or your courier business, will be personally out of pocket.

Customers who don’t receive their packages will be very unhappy, so on top of this, such an event could potentially ruin your reputation of your business and inevitably your career.

Delivering packages also comes with an increased amount of road mileage, which puts you at greater risk of being in a collision or road accident. Again, you need to know that you are protected in this situation, should it arise.

It is important to note that even the simplest of mistakes can lead to expensive accidents.

Many would believe that being a courier is a low risk position, but this is not necessarily the case. If we take this scenario as an example: You have just dropped off a parcel to one of your customers and place your bag on the floor whilst you retrieve the customers signature. The customers daughter comes home from school, they trip over your bag and break their wrist. Such an incident could be extremely costly if they make a claim, especially once legal fees have been considered.

It is therefore extremely important to ensure you have the right protection in place such as adequate courier insurance in case such a scenario arises.


What types of Courier Insurance are there?

Like a standard insurance policy, there are 2 main types of cover you can purchase. It is important you choose the best policy to suit your needs so let’s investigate the options in more detail.


Third Party Only Couriers Insurance

This is the minimum amount of insurance you most obtain to be able to drive your van legally when delivering customers goods and packages as a courier. It will provide protection to other users on the road if you are involved in an accident that was your fault. You can also obtain a third-party fire and theft policy for added protection. This will give the same level of cover as third party but will also protect you against fire and theft of your vehicle.


Third Party Fire and Theft Insurance

This type of insurance is similar to that above; however, it will include cover to your vehicle if it is stolen or damaged by fire.


Comprehensive Courier Insurance

Comprehensive couriers insurance provides the same level of cover as third party but will also protect you as the driver and your vehicle if an accident was to occur.


Other types of insurance to consider:

Public Liability Insurance for Couriers

The nature of the courier business often means that courier drivers will have regular contact with customers. As previously mentioned, small mistakes can happen, and should an accident occur where a customer is injured it is important you have the necessary cover to pay out for any costs, should a claim be made.

Employers Liability Insurance

Employers liability insurance is a legal requirement and will offer similar protection to public liability insurance, however it will cover any injury to your employees. This is only really necessary if you run a courier business and won’t be needed if you work on a self-employed basis.

Courier Goods in Transit

Standard couriers insurance may not always provide cover for the goods you are transporting. It is important to check with your insurer, and if necessary obtain goods in transit insurance as an extra, but make sure you are not doubling up your insurance cover as this may cause an unnecessary added cost.

Fleet Courier Insurance

If you run a courier business and you have several vehicles that regularly go out on delivery, it may be a wise idea to consider fleet courier insurance. Fleet courier insurance has several advantages. Firstly, all vehicles will be protected under one policy, meaning the management of the vehicles if any claims are made will be more straightforward. Renewal dates will also be the same, saving you a lot of time and stress. Secondly, it may work out cheaper to insure your vehicles under one policy rather than separately.

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How can I cut the costs of Courier insurance?

With there being a greater risk of accidents associated with delivery courier insurance can often be overwhelmingly expensive. The good news is, it doesn’t have to be this way. We understand that saving money on insurance is important to maximise your profits and furthermore grow your business. We have therefore created a list of suggestions on how you can cut the costs of your couriers insurance and keep your spending within budget.

Drive the correct courier vehicle

It is important you drive a vehicle that fits within your level of experience and caters to your driving comfort and needs. For example, it is not a good idea to choose to deliver your packages via a motorbike, if many of your packages are large items. Similarly, if the packages you deliver tend to be small, then perhaps driving a van is not necessary and a motorbike may be more efficient.

If you are a self-employed courier, you may wish to use your own vehicle for work. Make sure the vehicle you are driving is fit for purpose – you don’t want to be breaking down at every drop off point as this could result in slower delivery time and unhappy customers. With the extra mileage it is also important that your vehicles fuel consumption is cost effective.

The faster and more powerful your vehicle, the more likely insurance premiums will be expensive, so make sure you think before you purchase any sporty model. Investing in a new van could save you money as they are considered more fuel efficient and are generally cheaper to run.

Drive with care and caution

The more caution you take on the road, the less likely you will be involved in an accident. The greater the number of no claims bonus you have, the better your discount on your future policies.

It is therefore important you practise safe driving. We suggest you stick within speed limits, know your surroundings and try to only drive in daylight.

If you are self – employed, this should be straightforward, however if you run a business, keeping an eye on your drivers can be tricky. It might be a good idea to regularly re visit and update your policies as well as provide regular training for employees.

This will ensure safe driving is part of the work culture is more likely to be ingrained into your employee’s behaviour.

Fit your couriers vehicles with a telematics system

Saving money on insurance has become easier thanks to a new telematics system. This system not only allows employers and customers to know your location but also makes it easier to track parcels. This means customers will be aware when to expect their delivery and are more likely to be home when their parcel arrives. By transmitting computerised information to a control panel, telematics enables vehicle data to be tracked and analysed. It can also calculate your driving speed and the time you have been driving for.
Overall, telematics can help businesses improve customer satisfaction as well as reduce complaints. They also allow driving behaviour to be monitored, which most insurers will favour as it may help them identify fault in the case of an accident and reduce careless driving. By fitting a telematics system to your vehicle, you may be seen to be a lower risk therefore obtain a cheaper courier insurance policy.


Are there any Exclusions with Courier Insurance?

More expensive items may not be covered under a standard courier insurance policy. This is because the more expensive your cargo, the greater the risk of it being stolen. If for example, you are responsible for delivering technical items like computers or laptops, these will be much more appealing to thieves than say a van delivering books. It is important you check with your insurance provider the types of goods that may be excluded. It may be necessary to take out an extra premium if your goods are not on that list.

Now you have the information needed to choose the best courier insurance policy for you, so why not head over to our free online tool to compare courier insurance prices.