A Guide To Courier Insurance – How To Find The Best Policy
In the recent years, the UK’s commerce sector has grown considerably. As the market stretches, there is the need for things to be delivered fast and securely. For this reason, there is an overwhelming demand for courier services to facilitate the deliveries. This has seen more people get into the business. Frankly, it’s great to run a courier service but you have to comply with all the legal requirements. One important regulation that the business has to fulfill is insurance.
The insurance policy protects your business, your customers, and the general public from risks, such as accidents, damages, and loss. There are different types of courier covers and it’s important to pick the right one. To help you find the best policy, here is a quick courier insurance guide.
1. What Type of Policy Can I Take Up?
In the UK, there are three basic covers to take before you start a courier service business:
a) Vehicle Insurance: Remember, you are going to make deliveries using a vehicle, so you have to cover it. It can be a car, truck, lorry, van or motorcycle. When taking up a car, truck, or van insurance, you’ll be provided with the following policy options:
- Insurance for Goods on Transit: This happens to be the most popular vehicle insurance since it covers the goods of the customer against damage and loss when on transit. In case the owner complains of a damaged or lost item, you are not financially liable to replace or repair it but your insurance company is.
- Legal Protection Cover: This insurance gives your vehicle the legal protection that it needs in the event of an accident.
- Unsecured Loss Insurance: This policy is designed to help you recover unsecured losses such as lost earnings and surplus pocket expenses.
- Breakdown Insurance: If it happens that your vehicle experiences a mechanical problem on transit and you need a breakdown service, this policy guarantees you the provision.
b) Employers’ Liability Insurance: This type of insurance is a legal requirement for every employer in the UK. You are expected to protect your courier employees against risks such as personal injuries and illnesses suffered at work. The cover may cost around £5 million. This policy protects you against complaints filed by your employees in reference to the mentioned risks.
c) Public Liability Insurance: On a daily basis, your business interacts with the members of the public and there are risks involved, including accidents, injuries, and property damages. Should you destroy a private property or injure a member of the public, this policy covers you, and it’s the role of the insurance company to compensate you.
2. What If I Have More than One Courier Vehicle?
In case you have several courier vehicles that you want to cover, you can apply for a fleet insurance. The policy is cheaper if compared to covering the vehicles individually. The policy comes with a one-renewal benefit which allows you to renew your insurance plan once for all covered vehicles. It covers a named and unnamed driver hence very convenient.
3. Can I Find an All-Inclusive Courier Cover?
Yes, it’s possible to combine all the discussed policies in one. Even though this policy seems like a convenient option, it doesn’t necessarily imply that it’s cheaper. Accordingly, you should talk to a courier insurance expert before taking up the cover. Besides, not all insurance companies offer it.
4. What Determines the Premium Quotes?
There are several factors that influence the amount that you pay:
- The level of Insurance: Basically, there are two main levels: third-party and comprehensive. To cover your business from all possible risks, you should take up a comprehensive cover, which is more expensive than the third party. The third-party policy does not cover you extensively.
- No claim history: Usually, drivers who have no claim histories qualify for reduced premiums. So, if you are hiring a driver for your courier van, you should consider this.
- Age of the driver: Normally, younger courier drivers—25 years and below—are considered inexperienced, and thus a higher risk on the roads. Therefore, you have to pay more premiums for a young driver than for an older and experienced one. It may seem unfair to determine the premium quotes on this basis but this is how things are, so you’ve to accept it.
- Location: It’s not the location of the business that is considered but where the vehicle will be kept mostly. If it’s a high-risk area, then the premiums are higher.
- Type of vehicle: The model of the vehicle plays a role in determining the premium quote. An expensive and powerful model demands a higher premium than a cheaper and less powerful design.
5. How Can I Reduce the Costs of the Insurance?
If you want to pay less for the car, truck, or van insurance, you should:
- Drive safely: Careful driving reduces the risk of accidents. When involved in an accident, you stand to lose the accumulated bonuses.
- Track your vehicle: Using a tracking system like Telematics, you can be able to monitor your vehicle and reduce the risk of parcel loss.
- Take up a policy that you need: You don’t have to apply for all the policies listed in this guide. You just need to identify the one that your courier business needs. This will ensure that you spend a reasonable amount on the premiums.
- Indemnify the right vehicle: You don’t have to indemnify a truck or lorry if what you need is a van. Furthermore, a van is a better choice for a courier service business since it’s fuel-efficient and you get to pay less for its premiums than what you pay to cover a lorry or truck.
Generally, it’s important to take up courier insurance before you start your delivery operations. With the above guidelines, you should be able to find a policy that suits your business goal. With the right insurance policy, you are legally covered to run a courier service line and be able to protect your vehicle, staff, the general public, and the customers against various risks.