Most drivers know they need insurance, but there is still some confusion about the difference between courier insurance and freight insurance. Courier insurance protects you from the risks you face when receiving goods and making multiple deliveries for hire and reward.
What is courier insurance?
The term “courier insurance” is often used to refer to the coverage of your car during the delivery of goods. But not only does your car need protection while driving, you also need to cover the obligations and cargo you carry.
Courier insurance allows you to drive a vehicle specifically for the courier service: pick up and deliver parcels, parcels, newspapers and letters. It takes into account the fact that, as a courier, you are on the road longer than most drivers, so you have an increased risk of an accident.
If you do not claim to be a courier and do not have a standard commercial van policy, your insurer is unlikely to pay you if you have an accident. It can cost you much more than having the right coverage.
What are the types of courier insurance?
· Public liability insurance
Couriers communicate with members of the public on a daily basis, so there is always a small risk that you may injure someone or accidentally damage property while doing your business. If someone in the public complains to you, things can work out quickly. In addition to compensation for damages, the claim also covers additional costs incurred as a result of this injury, not to mention court costs and loss of wages.
Liability insurance protects you from such claims. Your supplier will also protect your claims, which means that you will not get confused in the paperwork, but instead will be able to continue to focus on your business.
· Employer liability insurance
Although most couriers work on a self-employed basis, if you run a courier service and have your own employees, you must obtain employer liability insurance in addition to standard business insurance. This applies even if your workforce only works on a temporary or occasional basis. Employer liability insurance covers compensation claims in the same way as civil liability insurance, but the key difference is that it covers claims made by employees rather than members of the public.
· Car insurance
Whether you use a car, minibus or motorcycle for courier service, you are required by law to obtain car insurance. This covers you if you cause an accident involving your car, resulting in injury or property damage. Comprehensive car insurance also covers damage to your vehicle. If you intend to use your car for courier services, you must notify your insurer, as most standard car insurance policies do not apply to commercial use.
You will probably receive a bonus for removing business usage exceptions. This also applies to any employees who use their own car, so businesses should ask for evidence that they have reported this to their insurer.
· Goods in transit insurance
As a courier, you are responsible for the loss or theft of another person’s property while it is in your possession. Travel insurance protects you if this happens. Travel insurance policies usually have a limit on the maximum cost per item, as well as the maximum total cost of the goods. Make sure these limits cover your shipments to avoid loss insurance.
· Light haulier insurance
If you are a courier that makes a small number of pre-arranged deliveries per day, light carrier insurance can save you money. Even if you work alone, you need to make sure you always have a legal form of cover, as courier companies looking for subcontracting will take care of that.
ALSO CHECK: Can you have two insurance policies on one car?
How to get cheap courier insurance
- Maintain good no-claims statistics to increase your chances of cheaper insurance renewal and avoid criminal records.
- Select a well-guarded minibus, including an approved alarm system and immobilizer.
- Choose the right level of insurance coverage for your vehicle and freight on the road, including the level of excess you can afford.
- Install telematics. This can help ensure proper driving and report accidents. It is attractive for insurers who want to reduce the risk of accidents, as well as the time required to resolve claims.
- If you have several vans, courier fleet insurance may be cheaper than insuring each van separately.
Whatever type of courier insurance you need, ChoiceQuote can find the best deal from our group of insurers. This saves you the hassle of getting offers directly from different insurers, and minimizes costs.
What does courier insurance cover?
· Any or specified driver
Are you the only operator of your vehicle? Maybe you share vehicles between multiple couriers? Insurers usually offer “any driver” or “specified driver” policies that suit your professional life.
- Third party fire & theft and third party only policie
Whether you want full coverage that protects your car from all events, insurance that protects you from fire and theft, or a policy that only covers you from damage to others or their property, there are a number of insurance options available for your car. . Only a third party is the minimum requirement that allows the use of UK roads legally.
· Short-term policy
If you are a beginner or seasonal driver, insurers can offer customized solutions to meet your needs. Monthly and quarterly rules avoid the burden of a one-year contract.
· Goods in Transit insurance
Transportation of the customer’s goods requires that the couriers be protected from damage or theft of these goods. Goods on the road – this is a must for any courier. Some of our courier insurance policies include insurance for a customer’s goods worth £ 10,000 on the go, but this coverage can be increased according to your typical job.
· Breakdown cover
If your car breaks down, the last thing you want to worry about is the cost of repairing and replacing vehicles, especially if you have late delivery. Breakdown coverage will take this burden off your mind.
· Public indemnity insurance
Your customers depend on you to safely deliver their cargo from point A to point B. Failure to do so can disrupt their business, which in turn will leave them without a pocket of their own. Professional liability insurance will protect you from claims against you in such cases. A number of optional refund levels are available with our courier insurance.
· Additional coverage
The type and amount of insurance you need as a courier will vary greatly from professional to professional. Additional coverage that you can add to your policy may include; fleet or several vehicle insurance, employer liability insurance or bonus protection.
