What is Courier Insurance?
Courier Insurance is an umbrella term for a range of covers designed to protect you while delivering other peoples’ goods to multiple drop-off points on behalf of clients.
Courier work is wide and varied. Courier Insurance could apply to someone who needs Food Courier Insurance, Parcel Delivery Insurance, Fast Food Courier Insurance, or anything in between.
It is really important to understand the different types of cover available to couriers. You will almost certainly need to have Freight Liability insurance in place. This protects you for your liability for the goods while in your care and custody. Importantly for you and your client whose goods you are transporting, Freight Liability Insurance does not insure the goods themselves at their commercial value. Rather, pay out calculations in a claim are usually based on the weight of the goods. So, compensation for a ton of bricks and a ton of gold could end up being the same. For this reason, the owner of the goods being carried will likely need to consider cargo or goods in transit insurance, which can be tailored to protect the goods themselves at an agreed commercial value.
What else might a courier need to consider when taking out insurance?
Outside of protecting the goods themselves, there are a range of other things to think about.
Commercial Motor Insurance
In order to carry out courier work it is a legal requirement to have commercial Motor Insurance. This applies whether you are looking for:
- Courier Van Insurance
- Courier Car Insurance
- Motorcycle Courier Insurance
This will ensure you are covered should you cause an accident involving your courier vehicle that results in injury or damage to property. It is important to know that carrying commercial goods for hire and reward on a standard motor policy will likely invalidate your insurance policy.
There are three standard levels of Motor Insurance: third-party only, comprehensive, and third-party, fire and theft. The minimum requirement is third-party insurance.
Most standard motor insurance policies will not automatically extend to business use. Without the correct insurance, any claim you make while driving your vehicle for business could be void.
Public Liability Insurance for couriers
As a courier, you deal with the public every day, which exposes you to the risk of injuring someone or causing damage to third-party property during the course of your work. For example, you could accidentally dent someone’s property with your delivery trolley.
It’s not a legal requirement to have Public Liability Insurance, but it is recommended in order to protect your business in the event that a claim is made against you.
An experienced broker such as BJP will ask the right questions to make sure you get the cover you need.
Employers’ Liability Insurance
This is a legal requirement under UK Law if you employ other people to carry out courier work, even on a temporary or casual basis.
Should one of your employees be injured, or become ill through the work you are liable for, this insurance will cover any valid compensation claims made against you.
Courier Fleet Insurance
This type of cover is designed for companies with at least five vehicles in its fleet.
If you need courier van insurance for multiple vehicles, this type of policy might help to reduce your courier insurance cost, when compared with individual policies.
All of these aspects can be tailored around your business.