Courier Insurance

Plan can provide policies for courier insurance for firms using push bikes, motor cycles, cars, vans and HGVs.

Courier insurance is a policy type designed to meet the needs of firms that deliver your customers’ goods. These policies take into account the additional miles travelled by these companies. Courier drivers are often attempting to make multiple drops whilst searching for drop off points in congested areas. A specific policy class has been identified by the insurance sector to cover the additional risk this activity presents compared to standard motoring. The value of the parcels and packages being delivered will need to be covered in a separate Goods in Transit policy.

Having the right risk management in place with correct up to date document templates, checklists and guides can help you minimise liabilities that can have a substantial impact on your company’s profits.

Plan offer your business personalised health and safety documents, risk assessments, method statements and much more. These additional documents are supplied to you at no extra cost when you take out a policy with Plan.

Our risk management services can include business continuity templates (that will need updating annually) which you can use as guidance and to track your business operations. With this, you will also receive regular notifications regarding legislation changes that are relevant to your business.

Follow the link to see our specialist fleet risk management tools.

If you are paid to deliver goods to customers and use a motor vehicle to do so it is a legal requirement to have motor insurance.  It’s important to ensure that your company has appropriate protection. A standard private or commercial vehicle policy does not supply cover for the delivery of goods. You will need a specialist courier insurance. You will probably be driving additional miles and working under time sensitive conditions. Therefore, insurers will need to apply additional premiums to cover the increased risk that your occupation presents to them.

Firstly motor insurance is a legal requirement and without it your firm could be contravening the law. Without suitable courier insurance your motor vehicle and the items being delivered also risk not being covered. Should an incident occur in connection to your courier business you may not receive reimbursement for your own and your customer’s losses.

Courier insurance requirements are often different to the cover required by haulage operators in a few ways. Normally haulage firms cover longer distances between drops as opposed to making several deliveries to multiple addresses in one day like a standard courier. As a result, a higher percentage of the miles travelled by courier firms are in urban areas rather than being made up of relatively lower risk motorway miles. Haulage firms in general also tend to use HGVs rather than smaller lighter vehicles. Heavier vehicles require greater driver training in order to obtain licences.

Couriers insurance does not include cover for vehicle contents. You will need to request goods in transit cover for this protection to be put in place.  Your account executive will discuss the worth of the items being delivered in order to a specify both an individual limit and total value of the goods being transported. Cover will be provided for theft and damage though policy exclusions will apply. So you should take time to read the small print and have any points that aren’t clear explained to you.

Your company’s courier insurance will need to provide cover for the “carriage of goods for hire and reward.” This is the essential “class of use” for a vehicle that has to be specified in a courier policy wording.

Courier firms should then be able to tailor the level of protection their policy provides. Your firm may wish to opt for:

• Third party only cover. This is the minimum level required to drove on UK roads. In the event of an accident it insures the cost of potential damage incurred by other road users and to their possessions. In the event of a fault claim it does not protect losses to your own vehicle.
• Fire and theft cover can also be added to third party only cover. This will reimburse your firm if your courier vehicle is stolen or suffers damages from a fire.
• Comprehensive insurance protects against the risks identified above as well as covering the costs of damages to your own courier vehicle’s repairs in the event of an accident, regardless of whose fault it might have been.

As well motor insurance cover (which is a legal requirement) courier companies are likely to want to arrange additional types of protections.

• Employers’ liability – if your company employs drivers to operate a courier fleet then employers’ liability is a legal requirement.  It will cover your company against potential liability claims should your employee fall ill or be injured in the course of their work. Employers’ liability is needed for part-time and temporary contracted workers.
• Public liability insurance – it’s advisable to have cover against claims that might arise if a third party is injured or their property damaged in the course of your work.
• Goods in transit cover – insures the items being delivered up to a specified value against theft and damage. However, policy exclusions and small print will apply.
• Guaranteed vehicle hire – if your courier vehicle is involved in a fault accident you will want to get back on the road asap in order to carry on generating income. Having a replacement vehicle whilst your courier vehicle is being repaired could be crucial.
• Breakdown cover – having a courier vehicle out of action could be inconvenient, costly and damaging to your reputation. Having a breakdown protection in place could be incredibly useful if your vehicle is incapacitated by the side of the road.

The cost of courier insurance will vary based on several factors. Premium calculations take into account experience, post code, driving history, vehicle type and value etc. You will want to assess the quality of cover being offered as cheap courier insurance isn’t always the best value. For example, a higher policy excess may apply along with certain exclusions and/or the insurer in question may have a poor claims and customer service rating.

Plan Insurance Brokers have extensive experience of couriers insurance and trading relationships with numerous leading courier insurers. As result we will compare courier insurance from multiple suppliers and provide informed guidance for your company.

As a business owner we would recommend discussing the following options with your commercial account executive:

Motor Fleet
Contractors All Risk
Goods in Transit
Offices & Yards
Professional Indemnity
Tools
Plant
Excess Layer Liability
Property Insurances
Directors & Officers
Cyber Liability
Specialist Schemes and Tailored Packages