Services for couriers and deliveries Potential hazards involved with this type of job, such as package damage, loss, theft, and accidents during delivery, should be covered by business owners. Commercial courier insurance is available as a stand-alone policy or as part of a package that provides comprehensive coverage.
There are four main types of business insurance you should consider for your courier business:
- Commercial auto insurance, not to be confused with personal auto insurance, covers physical damage and liability claims for employees who drive a company vehicle.
- General Liability insurance protects you from third-party claims such as bodily harm, property damage, and personal injury that may emerge during business operations.
- Cargo insurance protects products from physical loss, damage, and theft while they are being transported.
- Workers Compensation covers work-related illness and injury, as well as employee medical expenditures and lost pay as a result of the injury, as well as employee litigation protection.
Is courier insurance a legal requirement?
You must have motor insurance whether you utilize a car, a van, or a motorcycle for your courier service. This protects you if you cause an accident involving your vehicle that results in injury or property damage. Damage to your vehicle is also covered by comprehensive auto insurance.
Because most ordinary car insurance policies do not cover business use, you must notify your insurer if you intend to use your vehicle for courier services. To eliminate the business usage exclusion, you’ll almost certainly have to pay a fee.
This also applies to employees who drive their own automobiles, so the company should request proof that they have informed their insurer.
Do I need insurance to deliver parcels?
It’s an excellent moment to work as a courier. DHL, FedEx, and Hermes, as well as hundreds of smaller companies and self-employed freelancers, are all fighting to deliver items from online stores.
It’s a great moment to be in the industry, whether you’re just looking to supplement your income with your own vehicle or you’re a seasoned courier with a rise in new business that need additional drivers.
Courier van insurance
Courier van insurance enables you to use your vehicle solely for the purpose of delivering deliveries, packages, newspapers, and mail. It takes into account the fact that couriers are on the road for longer periods of time than ordinary drivers, putting them at a higher risk of being involved in an accident.
If you take out a regular commercial van coverage without declaring that you work as a courier, your insurer is unlikely to pay up if you have an accident. This could end up costing you a lot more than if you’d just bought the correct cover in the first place.
- Only for third-parties. The most basic level of coverage, which protects you from damage or injury to third-party property, such as other vehicles and persons. It does not provide any protection for your own vehicle.
- Third-party, fire, and theft insurance are all available. In addition to third-party coverage, you’ll be covered if your vehicle is damaged by fire or stolen.
- Comprehensive. All of the above is included, as well as coverage for damage to your own car.
Goods in transit insurance
If you work as a courier, you should be covered for both the products you deliver and the risk you represent to other motorists.
The value of the things you transfer is protected by goods in transit coverage if they are lost, damaged, or stolen. In most cases, coverage is offered for up to £50,000 per load per claim.
Although this is an optional insurance, many businesses and government agencies will require it if you are delivering products on their behalf. It’s easy to see why: without insurance, you’re responsible for the costs of damage, loss, or theft to the products you’re transporting. Can you afford to meet such expenses if it occurs?
Having goods in transit insurance in addition to courier van insurance protects you against any risks you may encounter when driving for a courier service.
Public liability insurance
Every day, couriers interact with the general public. Accidents do occur. If you harm or injure someone or their property, they may be able to sue you for compensation.
Accidents involving members of the public are covered by public liability insurance. You may be able to recoup legal fees, and your insurer may be able to compensate you if a claim against you is successful.
Public liability insurance can be added to your courier insurance package, extending coverage beyond dangers on the road to risks encountered when delivering items to people’s homes. It can be obtained in conjunction with your courier van insurance or independently with employers’ liability insurance.
How much does courier insurance cost?
- The age and driving experience of the named driver(s) – insurance prices are higher for drivers under the age of 25, who are considered to be a higher risk.
- The vehicle’s kind and age quicker, more powerful vehicles cost more to insure.
- The type of coverage chosen: third-party, third-party fire and theft, or comprehensive insurance. Comprehensive coverage is more expensive, but it’s well worth it to protect you, your vehicles, and other drivers on the road.
- The vehicle’s policy excess if you agree to pay a higher excess, the overall cost of insurance will be lower.
- Insurance companies must assess risk based on crime data depending on where the car is located and parked overnight. Within a same postcode, prices can fluctuate.
The cost of a courier van policy varies widely, but it normally starts at £86.33 per month*.
The cost of goods-in-transit insurance is determined by the degree of protection you need. Minimum coverage costs roughly £200 per year*, which is a minimal fee to pay for the level of security offered.
Public liability insurance is sometimes included as part of a courier van policy, although it can also be purchased separately. To obtain the greatest pricing on all of your insurance needs, contact us for a quotation.
How can I reduce the cost of courier insurance?
- Maintain an excellent no-claims record to increase your chances of getting a lower insurance renewal and to prevent getting a traffic ticket.
- Choose the correct level of coverage for your car and products in transportation, as well as an excess level that you can afford.
- Telematics should be installed. This can aid with safe driving and the reporting of accidents. Insurers who wish to lower the risk of accidents and the time it takes to process claims may find it appealing.
- If you have several vans, courier fleet insurance may be less expensive than insuring each van individually.
Self-employed vs employed couriers
Couriers who work for themselves deliver items for businesses and bill them for their services are known as self-employed couriers. Businesses or local governments would typically hire you to deliver things on a regular basis, but you will not be directly employed by them.
Being self-employed allows you to work for a variety of firms and on a variety of contracts. While you won’t have the certainty of monthly income, you will be able to make more. Choosing your working hours might also help you achieve a better work-life balance.
Employed couriers are paid directly by the employer, usually on the same day or at the same time each week or month. You could work for DHL, Hermes, Yodel, or another carrier entirely.
Make sure you have the appropriate courier insurance for your van, its contents, and your liabilities in either case. If something goes wrong, you won’t be out of pocket or out of job as a result.
Courier vs haulage insurance
People are occasionally perplexed as to what constitutes ‘courier’ employment and what constitutes ‘haulage.’
Picking up goods and dropping off separate products at different locations is the job of a courier. This usually entails delivering things that are ordered on an as-needed basis (e.g., apparel, electronics, or books), so the commodities’ destination changes every day.
Haulage job entails driving longer distances in larger vehicles, usually to frequent destinations (more than 3.5 tonnes gross vehicle weight). Consignments are usually larger, with refrigerated supplies included.
Employers’ liability insurance
Employers’ liability insurance is a legal necessity if you have any employees. This is frequently marketed as part of a package with public liability insurance, but it can also be purchased individually. If you hire others to do courier job, talk to us about this coverage.
Fleet insurance
Larger courier companies may opt for fleet insurance, which normally covers five or more cars under one policy. Multiple drivers and cars can be named on a single policy, making insurance straightforward and affordable.
Our knowledgeable team can provide you with a quote either online or over the phone, allowing you to focus on ensuring that goods are delivered on time to your clients without having to worry about insurance.
FAQs
Yes. You must get courier van insurance for your vehicle in order to do courier work. It is not required by law to have goods in transit or public liability insurance, but it is strongly suggested to provide the best protection for your company.
Your courier van insurance will protect you if you need to drive your vehicle for a single pick-up and several drops-off of things. This includes parcels, packages, letters, and newspapers, among other things. A courier vehicle insurance policy does not cover furniture or takeaway food delivery.
Your services are hired to deliver items in exchange for payment, which is known as hire and reward. Things in transit insurance covers the goods you’re delivering, while courier van insurance covers your vehicle for rental and reward employment.
Courier insurance is provided to any courier who does hire-and-reward deliveries in their vehicle. It is not ideal for haulage jobs or other commercial vehicle applications such as furniture moves. For further information, see ‘What can I convey as a courier?’ above.
Can I insure my courier?
This is due to the fact that becoming a courier requires a great deal of organization, as it is also a small business. Insurance is one of these things. A courier must safeguard his or her business against a variety of unforeseen losses while also adhering to a variety of regulatory requirements.
We’re going over the several types of insurance that a courier needs:
- Public Liability Insurance: As a courier, you deal with the public on a daily basis, which means there’s a potential you’ll injure someone or damage someone else’s property by accident. If this occurs, you may be subject to a compensation claim. Compensation claims can be costly, and if the claim is for an injury to a third party, there may be additional costs such as legal fees and lost wages. If you carry public liability insurance, though, you can receive financial assistance in many of these situations. Your insurance provider can also fight the claim on your behalf, allowing you to focus on running your business rather than dealing with vast amounts of paperwork.
- Insurance for Goods in Transit: When transporting someone else’s property, it is your responsibility to deliver it in good condition. This is due to the fact that any damage or loss to it can render you liable. However, commodities in transportation are vulnerable to damage, thus this insurance is purchased. Because it is impractical to obtain insurance for every item you transport, most goods insurance policies have a limit. This limit applies to the maximum value of each item you transport as a courier, as well as the approximate total worth of all products in each consignment. It is critical to select the appropriate limit so that you are not left unprotected in the event of a loss.
- Let’s talk about the most crucial aspect of your courier insurance plan: car insurance. This is the type of vehicle you’ll need to transport your cargo. A standard vehicle insurance coverage will not cover you if you ride a bike, drive a car, or drive a van. Your vehicle is covered by a standard third-party insurance policy against losses or damages to third-party property or people. A comprehensive automobile insurance plan, on the other hand, covers third-party liabilities as well as own vehicle and self-injury. A courier insurance policy, on the other hand, is an unique type of insurance policy that is meant to do just that: provide suitable insurance for your commercially utilized car.
- Employer Liability Insurance: Even though couriers are considered self-employed, it is suggested that you get employer’s liability insurance if you have any employees. Even if you hire people on a casual or temporary basis, you should obtain this insurance. Employer liability insurance protects employees in the same way that public liability insurance does. The sole difference is that it only covers employees and not the wider public.
Because the number of courier employment has increased in recent years, insurance plans like this are becoming increasingly important. However, many people begin working as couriers without purchasing a courier insurance plan, and as a result, they end up in difficulty. As a result, it’s a good idea to purchase a decent courier insurance plan and get ready to convey products.
How do you insure a shipment?
Orders that are lost or damaged in transportation can have a significant impact on your organization. Take a look at some of the most common questions about shipping insurance.
How much does it cost to ship with insurance?
It is dependent on the carrier and the value of the products being shipped. The costs of shipping insurance are listed above for each of the major carriers and postal services. There are also third-party shipping insurance that are often less expensive than the major carriers.
How does shipping insurance work?
When a package is reported lost or damaged, file a claim with your carrier or insurer to be paid. You’ll need to provide documents to prove the products’ worth.
If a product is lost or stolen, the carrier may have to hunt for it for up to ten days. Claim processing, on the other hand, usually takes only a few days.
Do couriers need CPC?
In England, Scotland, and Wales, if your company operates goods vehicles with a gross plated weight of more than 3.5 tonnes (or an unladen weight of more than 1,525 kg for unplated vehicles), you’ll require a goods vehicle operator license. You’ll need a normal driver’s license, which allows you to transport both your own and other people’s property. For each Traffic Area in which you have a base, you must have an operator license. The Traffic Commissioner for the area is in charge of issuing licenses. England, Wales, and Scotland are divided into eight Traffic Areas. In Northern Ireland, you may need a goods vehicle operator’s license from the Department of the Environment’s Transport Regulation Unit (TRU) (DOENI). The Gov.uk website has more information about goods vehicle operator licences, as well as the DOENI in Northern Ireland.
Driving, or allowing another person to drive, a vehicle on the road without a valid driver’s license that covers that category of vehicle is illegal. Drivers must take and pass a driving test for the appropriate vehicle class in order to earn a license. A driver must have an LGV (large goods vehicle) license to operate a vehicle with a gross weight exceeding 7.5 tonnes. Dangerous goods truck drivers must also have a training certificate obtained by attending an approved course and passing a written exam.
Large goods vehicle drivers must have a current certificate of professional competence (CPC).
Anyone who carries live animals for a living in the course of their company, such as a specialised reptile courier, must obtain a DEFRA transporter licence and, if applicable, a certificate of vehicle approval. On the Gov.uk website, you can apply for animal transporter authorization.
Aside from the requirement that all cars have a valid vehicle excise duty license, there are no other licensing requirements related to couriers (road tax). It’s worth noting that unless your vehicle is declared off the road, the law compels you to have it insured at all times (SORN).
Why is courier insurance so expensive?
You would assume that as a courier driver, you already have enough to deal with, from unending traffic jams to tight delivery schedules. However, you must pay more for courier insurance than for private automobile insurance, which is another annoyance.
The fact that courier insurance is frequently more expensive may appear unjust at first, but there are reasons for this, one of which is that persons who drive for work are statistically more likely to be involved in an accident.
Courier drivers spend a lot of time on the road, attempting to make delivery deadlines and driving vast distances to unexpected areas on a daily basis. As a result, you’re considered as a bigger risk by an insurance provider than someone who drives their car for home, domestic, and enjoyment purposes, and this is unfortunately reflected in the amount of your premium.
Because most couriers require a great amount of space to haul a large volume of items, their vehicles are frequently larger than standard cars, putting them in a higher insurance category and potentially increasing costs. In other words, the higher the insurance group your courier vehicle belongs to, the more expensive your courier insurance will be.
Along with their courier vehicle insurance, courier drivers must also obtain additional valuable insurance coverage. Goods in transit insurance, which protects your cargo, public liability insurance, which protects you from allegations of carelessness, and employers’ liability insurance, which is needed by law if you employ one or more employees, are just a few examples.
While these additional forms of coverage will increase your overall rate, we strongly advise you to buy them because future claims might cost thousands of pounds without the protection of public liability insurance. It’s also worth noting that if you have employees but don’t have employers’ liability insurance, you could risk a large punishment.
So, aside from maintaining a clean driving record, choosing a vehicle with a lower insurance category, and transporting low-risk cargo, how can you save money on courier insurance?
It’s critical, like with any sort of insurance, to shop about to ensure that you’re receiving the most value for your money. However, this can be a time-consuming operation, and reading through jargon to figure out what you’re insured for might be bewildering.
What license does a courier business need?
Before you start your courier service, be sure you have a license. A license gives a company legal permission to operate within local, county, and state limits. Depending on your location and the businesses you aim to serve, a courier service may require both a business license and a driver’s license. It’s advisable to double-check whether both are required, as being unlicensed could lead to further code breaches, which could result in your business being shut down.
Is food delivery illegal without insurance?
You’ll need specialized insurance to drive lawfully as a fast food delivery driver. We work in this industry at Insurance Revolution, assisting clients in selecting the appropriate coverage for their business.
You must ensure that your vehicle is properly insured. If you are stopped by the police without the proper insurance, you may be issued an IN10, and any claims you make while working as a fast food delivery driver may be canceled. If this occurs, you may be liable for the costs of any other party involved in the accident, including the cost of repairing their car or property and compensating them if they were hurt.
The majority of regular car insurance policies do not cover you for hiring and reward or delivery of fast food. You may get a car policy with Insurance Revolution that includes comprehensive coverage and permits you to operate your vehicle as a part-time or full-time fast food delivery driver.
To be honest, this insurance is typically more expensive than ordinary car insurance.
The reason for this is that delivery drivers frequently experience pressures that regular drivers do not. As a delivery driver, for example, you must deliver the food you transport to customers in a timely manner. This may have an impact on the way you drive and the decisions you make while behind the wheel.
Furthermore, although working in a tiny part of the country or even the city they live in, delivery drivers frequently cover a considerable amount of miles. Those extra kilometers mean you’ll be on the road for longer than other drivers, putting you at danger for things like nighttime driving or icy and cold conditions.
As previously said, if you are caught driving without the proper insurance, you may face a driving conviction, which you must inform prospective insurers of. Driving convictions frequently raise the cost of your auto insurance, and many insurers refuse to insure convicted drivers.
Furthermore, if you underinsure yourself and drive for reasons not covered by your insurance coverage, your insurer may reject any future claims. For example, if you were traveling to deliver food and collided with a wall, your insurance might be canceled, and you’d have to pay to repair the damage to your car and the wall you collided with. Insurance policies that are canceled often signify that the cost of your future insurance will rise.
If you were in an accident with another car, you may be liable for any damages caused to the other vehicle as well as the individuals who were in it. Depending on the severity of the injury, this could cost a lot of money in terms of lost wages, inconvenience compensation, and potentially rehabilitation expenditures.
We specialize in obtaining insurance for fast food delivery drivers at Insurance Revolution. You can acquire a quotation by going to this page: Fast Food Driver Insurance. We have policies that allow you to drive for social, domestic, and recreational purposes, as well as for fast food delivery.