If you are running a business you will have to be prepared for the all eventualities that this enterprise could bring. If you are running a courier business; you must have all facets of the business well insured. Most courier businesses are vehicle-based, so each and every vehicle (vans, motorbikes, cars, trucks) have to have adequate cover.
A lot of people in the courier business take out regular van insurance and think that the business is covered. But that is not true. Van insurance would be considered adequate only when you are transporting your own goods but when it becomes a courier business and you would be delivering to clients on a hire and reward basis.
There are a number of factors to consider when you are looking at courier insurance; there are also various levels of courier insurance. Third party insurance is the minimum one; you will need to get cover which has other features too.
Public and employer’s liability cover is one you should look at seriously. In this case you will be held personally liable for unforeseen costs. You would also have to ensure that there is a ‘goods in transit’ insurance to protect the contents of the vehicles.
The ‘goods in transit’ cover should protect you against theft while in transit, loss, damage caused by accidents during transit and other damages in transit.
You will also have to make sure that there is breakdown cover. This is important because, most of the documents and parcels that you carry are time sensitive and if you break down then you might have to pay compensation to your clients. If you have branches and business in other parts of Europe, it is advisable you also get European cover and a no claims protections, both vital insurance covers for the courier business.
It is fortunate that you don’t have to spend exorbitant amounts on premiums as the market is quite competitive and if you were to compare the quotes from various insurance providers you will get the right cover as well as some discounts.
However, there are some things you have to be careful about. You have to ensure that you are fully covered and you may not get the 100% all-risks-cover that you are looking for.
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.
In the courier business you may not be fully aware of what you are delivering and picking, until you actual pick up the parcel or package. If any of the these items are what insurance companies categorise as ‘target goods’ that is, iPods, computer parts, electronic equipment, you will get only 50% of the claim. For instance, if your policy covers you for £10,000 you will get only £5,000.