Modern courier firms are lucky enough to benefit from the advantages of insurance. These firms vary from huge international enterprises, with depôts in every major city, to a bicycle messenger working for himself within a small area of a city, ferrying messages and parcels between companies who recognise the speed and relatively low cost of this means of transport. The majority of couriers, however, are small van couriers. Couriers differ from haulage and transport firms because they make multiple drops in a day, rather than taking quantities of wholesale goods, which will be redistributed after the delivery has taken place.

When you’re looking for insurance for your courier firm, you will need to be aware how many aspects of insurance will be needed. First of all if you are using a motorised vehicle, i.e. a van or a motorbike, or even a lorry, to make deliveries, then there exists a legal obligation for motor insurance. This needs to be one which allows carriage of goods - not haulage- as explained earlier, these are different categories which depend on the number of drops or deliveries made in a day. This motor insurance covers the usual categories, such as replacement van following an accident, replacement glass cover, legal costs, and so on.

Like private car insurance there will be a negotiable excess, and No Claims Bonus deduction and protection.

Goods in transit insurance will be needed; this will cover for loss and damage to the parcels and packages carried. There may be exclusions, such as for the carriage of hazardous goods, or for livestock. If the goods carried are ‘theft attractive’ they may incur a higher premium or be reimbursable at only a proportion of their value. Goods in transit insurance can cover secrecy insurance, for delivery of unidentified goods. It should also cover for damage or loss of equipment – which can be significant in terms of expense - for example, a scanner. Goods in transit insurance should also cover public liability and employer liability. If the courier is an owner/driver with only one van then of course employer liability is not necessary. If however the courier has more than one van, there may be substantial discounts available for each additional van (or vehicle) to be added to the policy.

Additional categories that may be available after negotiation include cover for goods or services that are not paid for, or for problems that might incite a customer to sue you. Some courier insurance does not cover the pedestrian delivery of the goods, in other words, from the time when the driver leaves the van to knock at the door of the delivery address. Most insurance policies will not cover goods in a van which is left unlocked for however short a time. These details can all be sorted out by choosing a reputable insurance company, and reading the policy before discussing the individual terms. There are many firms specialising in courier insurance on the market but it is worth spending some time to make sure that the cover purchased matches the cover required!

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About the Author:
The Moorhouse Insurance Group is based in Caerphilly, Wales, has been trading for more than 20 years, and has won major awards in the insurance field, including business insurance.

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