Why get a courier insurance in the UK?

If you are running a business, you will have to be prepared for the all eventualities that this enterprise could bring, such as accidents, theft, and damage to goods in transit. Courier insurance is a specialized policy designed for individuals or businesses that transport goods for hire. It goes beyond standard van insurance by offering additional coverage for the items you carry. Most courier businesses are vehicle-based, so each and every vehicle (vans, motorbikes, cars, trucks) have to have adequate cover.

Pros and Cons of Courier Insurance

Courier insurance offers several benefits to both couriers and their clients. Firstly, it provides peace of mind in case of loss, theft, or damage to goods during delivery, and potential financial losses. Moreover, clients are more likely to trust a courier with adequate coverage. Additionally, in the UK, courier insurance is not just a choice but a legal requirement, as it covers couriers’ liability for damages caused to other road users and property.

However, there are also drawbacks to courier insurance. The primary drawback is the cost because premiums tend to be higher compared to standard van insurance due to the increased risk associated with transporting goods. Furthermore, choosing affordable and the right level of coverage can be challenging. It requires careful consideration of the types and value of goods being transported, which may add another layer of complexity for couriers to manage.

What Does Courier Insurance Cover?

Courier insurance in the United Kingdom typically covers:

  • Goods in transit: This covers the value of goods if they are lost, stolen, or damaged while in your care.
  • Public liability: This covers you if you injure someone or damage their property while making deliveries.
  • Employers’ liability: This is mandatory if you employ other couriers and covers you if they are injured while working.
  • Vehicle cover: Provides comprehensive or third-party, fire & theft cover for your courier van.
  • Tools and equipment: This covers damage or theft of tools you use for deliveries (e.g., pallet jacks).
  • Legal expenses: It covers legal fees arising from disputes related to your deliveries.

Which Insurance is Best for Couriers?

You can determine the best courier insurance by considering several factors based on your circumstances. Firstly, the value of the goods you carry plays a crucial role in deciding the appropriate coverage level. For instance, higher value goods necessitate higher coverage limits to adequately protect against potential losses. The type of goods you transport should also be taken into account because certain items may require specialized cover due to their nature or susceptibility to damage. The size and type of vehicle you use for deliveries also impact insurance considerations. Larger vans or those carrying hazardous materials, for example, potentially incur higher premiums.

While the best courier insurance ultimately depends on those factors and more, reputable providers such as Aviva, Direct Line, AXA, and RSA offer comprehensive coverage options with competitive premiums.

Short Term Courier Van Insurance

If you’re in the UK and need insurance for your delivery van but only for a short time, there are a few ways to get it. Some insurance companies specialize in temporary courier van insurance, such as Tempcover or Dayinsure. Insurance brokers can also help you find the right policy. You can also contact insurance companies directly to ask about their temporary car insurance options. Make sure you understand what the insurance covers and any extra costs before you buy it.

How Much Does Courier Insurance Cost?

The cost of courier insurance varies depending on the factors mentioned above. However, expect to pay more for higher value goods in transit cover and additional benefits like legal expenses. Prices can start from around £200 per year for basic goods in transit cover, with van cover and additional options chosen, premiums can range from £800 to £2000 annually.

Self-Employed Courier Insurance in the UK: Self-employed couriers should expect to pay similar rates to those of small businesses.

Cheapest Courier Insurance UK:

While it’s tempting for businesses to look for the cheapest courier insurance in order to save money, opting for the cheapest option isn’t always the best strategy. We believe that focusing on securing adequate coverage from the best courier insurance providers at competitive rates is key. You can achieve this by comparing quotes from multiple providers to find the best value for your specific needs. The best way to do this is to use insurance comparison sites like Money Supermarket, Quotezone, GoCompare, and Compare the Market.

Most couriers use vans to transport packages. A van insurance can be expensive, as the van is exposed to higher risk because of time pressure and simply because of driving a lot more. The average courier is driving between 5 to 10 times as much as the average normal driver. On top of that, you also need to insure the goods carried by the courier.

Best Courier Insurance Providers

There are many courier insurance providers in the UK. Some of the top contenders based on factors like customer reviews, coverage options, and industry reputation are:

  • Zego: Zego offers one of the best delivery insurance for food and courier drivers. In fact, Zego’s pay-as-you-go option starts at just 80p per hour, while some competitors charge as much as £2.50 per hour – that’s a potential saving of over £1.70 per hour. They also offer 30-day policies for those who prefer a more traditional approach.
  • AXA: AXA provides various coverage options for courier businesses, including van for haulage, delivery and courier use, and trailer cover. Prices range from £250 to £500 per year, with potential discounts of up to 10% and additional benefits like breakdown cover and No Claims Discount (NCD) of up to 60%.
  • InsureCourier: A specialist provider with competitive rates and a wide range of coverages. They offer fleet, goods in transit, courier breakdown cover, and public liability options. They also have short term courier insurance on a weekly, monthly and quarterly basis regardless of your postcode. This is a good option for short term courier drivers who may drive seasonally or occasionally.
  • 1st Choice Insurance: Another specialist provider known for their courier insurance expertise. Courier van insurance is one of the popular product.
  • INSHUR: This online provider offers courier insurance specifically designed for private hire drivers and couriers in the UK. They provide flexible insurance options, with both 30-day and annual policies available. Their coverage extends to courier and food delivery platforms, including standard protection for social, domestic, and pleasure use. This ensures that even while you’re delivering meals, you can still use your vehicle for personal purposes outside of work hours without any concerns.
  • Admiral: Admiral offers competitive commercial van insurance that can be tailored to include goods in transit cover. This makes them a good option for some couriers who can bundle their van insurance with goods in transit coverage. Admiral courier insurance applies to small, transit, and vans weighing up to 3.5 tonnes. Please note that Admiral courier insurance provides coverage for delivery driving if your policy includes the ‘Carriage of goods for hire and reward’ class of use.
  • Simply Business: A well known insurance broker in the UK whose courier cover starts from £3.19 per month.

You Need Courier Insurance

Courier insurance is essential for anyone transporting goods for hire in the UK. It provides financial protection for lost, stolen, or damaged goods, protects you from legal liabilities, and inspires client confidence. While there are costs involved, consider it an investment in the security and future of your courier business. Whether you’re a self-employed courier or a business owner, it is important to protect your business and assets with courier insurance.

Remember that business insurance premiums are generally considered deductible business expenses by tax authorities like the HMRC in the UK. Therefore, courier insurance itself is a separate business expense and can be deducted from your taxable income. You’ll need to keep your insurance policy documents as proof of the cost.