Getting the right courier insurance is one of the most important things you’ll do when starting to work, whether you work locally or are a driver for one of the big companies, such as Hermes, Amazon Flex or DPD. This guide will provide you with all the information you need to find the best insurance for your business.
Why do I need to take out courier insurance?
In the UK, having valid car or van insurance is a legal requirement. If you are in an accident, and you do not have any insurance cover, you could face a large fine and the removal of your driving licence. Having car insurance is necessary as it covers your expenses in the event of an accident. You might damage your car, someone else’s vehicle, passengers, pedestrians – and as a courier, it is also important to cover the value of the goods you are transporting.
What type of insurance does a courier need?
As a courier. you have to deliver all types of goods as your daily work, so you need to be confident that your insurance covers all eventualities. You could be transporting money to and from a bank, valuable medical supplies, jewellery or fragile goods. As your role is to transport goods as quickly as possible from door to door, often in quite a hurry, it is acknowledged that there are particular risks associated with delivery work.
Insurers know that couriers are working against the clock, and they also know that couriers and their vans are also often targeted by thieves – in fact, the Ford Transit van is the type of vehicle most commonly reported stolen in the UK. All this means that your premiums – the amount of money your insurance costs, usually payable in monthly installments – can be quite a bit higher than normal car insurance. However it’s a legal necessity, and you can’t afford to not have the right insurance. Remember, the cheapest policy is not necessarily the best. In the event of an accident, it could easily prove to be a very expensive mistake!
Different Types of Insurance
When you work as a courier, you need to take out insurance that covers you against the goods you transport, as well as the risk you pose to other road users and members of the public. Taxi drivers, lorry drivers and takeaway drivers cause slightly different risks and so require various other types of cover.
Goods in Transit Insurance is very important as it protects you for the value of the goods you are transporting in your vehicle. Public Liability Insurance and Road Risk Insurance are sometimes combined to provide cover against the risk you pose to road users. You might also want to think about Employee Liability Insurance if you employ anyone. Most of the brokers online offer a telephone quotation service but we found Fastquote, based in Birmingham, offer a fully automated buy online platform.
There are different levels of protection. Third-party cover, for example, only covers damage caused to another person or their goods, while comprehensive cover protects all parties involved in an accident or incident, including yourself.
Many couriers decide to take out a comprehensive courier insurance policy for their peace of mind when out on the road. The premiums might be more expensive, but the level of cover, plus often additional services, provide all the cover you need.