What Insurance Do You Need to Become a Courier?
Jobs classed as being a courier are on the rise in recent years with everyone from Amazon to local takeaways using couriers to deliver their goods quickly and efficiently. But many people start as a courier and run into trouble because they don’t have the right insurance in place. Here we look at what kind of insurance you need to be a courier and ensure you are legally covered.
Let’s start with the most important element – the vehicle you use to transport the goods. Whether you use a car, a van or even a bike, normal insurance isn’t going to cover you for this job, even if you add top level business use on it.
Courier insurance is a specialist type of policy designed for the job. It can be a standalone policy or work alongside other policies such as Goods in Transit or liability cover. Whatever the extras, at the heart should be a policy that covers you for ‘carriage of goods for hire and reward’ otherwise you aren’t correctly covered.
Goods In Transit Insurance
Goods in Transit policies are crucial for couriers to ensure if there is an incident and parcels being transported are damaged, you are covered for the financial cost of these items and don’t need to pay back the costs yourself.
Imagine you are carrying £500 worth of parcels to deliver to customers. Someone hits your car and the vehicle catches fire, damaging the parcels. If you don’t have GIT cover, then you would have to pay for those parcels from your own pocket. But if you have GIT, then the policy would cover the costs and you would simply have to pay any excess on the policy.
Some courier vehicle insurance policies do include Goods in Transit cover as standard so see what you get with your main policy before taking additional cover.
Anyone who comes into contact with the general public as part of their job should have public liability cover. This covers you for any injury to a person or damage to a third party’s property due to your business.
Let’s say you have a side opening van and are unloading some items. One falls from the top of the pile and strikes a passing pedestrian, causing a nasty cut on their arm. If they sue you for this injury and you don’t have PL, you would face the costs yourself. But if you have the policy, it will cover the pay-out to the pedestrian.
Other Types Of Insurance
As your courier business grows, you may need other types of insurance. For example, if you employ a second driver to cover some shifts or to operate a second vehicle, you will need employer’s liability. This covers you if they are injured or become ill while working for you. If you did add that second vehicle or more, you might eventually want haulage insurance to cover all of your vehicles on one policy, rather than paying for a policy for each one.