The best insurance needed for courier business is the public liability insurance. It protects your UK courier business from claims from the public who may have been negatively affected by your business activities.
You also need to get the courier van insurance policy to protect the vehicle used for deliveries. There are several other types of insurance for couriers that you will discover in this article.
What is Courier Business Insurance?
It is an insurance policy that cover people (drivers) who drive a courier van and convey goods to the owners. You need to take out certain types of courier insurance in the UK to keep your business safe from third-party claims.
Do I Need Insurance for Courier Business?
It is straightforward – you need the courier insurance if you drive a courier van. You also need to take out UK courier insurance if you make up to 4 home or office deliveries daily.
Please note that your personal auto insurance coverage doesn’t often extend to your workplace. It is personalized and often limited to the vehicle you signed it up with. Therefore, working for or with a courier business in the UK requires you to have certain policies before you head out on the road.
What You Need to Know About Self-Employed Courier Insurance
This is the type of courier insurance policy exclusive to couriers that work for themselves. Since you are not contracted to work for a courier company, you can get this policy. It covers you and your vehicle.
On the other hand, the employed courier insurance is different from the self-employed courier insurance because it covers the employees of the courier company.
The downside to working with a self-employed courier insurance is that you pay out of your pocket. The coverage options may also be limited, because you are footing the entire bills.
On the brighter side, you can leverage it to protect your courier van, and other related liabilities.
What Insurance is Needed for Courier Business in the UK?
In this section, we are going to talk about the insurance needed for courier business in the UK. These are the:
1. Courier Public Liability Insurance
It is a type of liability insurance that protects the courier business against third-party claims. It is also one of the minimum insurance requirements before you can be allowed to run a courier business in the UK.
You need the public liability insurance for couriers if:
- Your courier company takes on multiple courier contracts.
- The company has several drivers and courier vans.
- In the course of your deliveries, you have to deal with members of the public.
2. Courier Van Insurance
It is a type of insurance needed for courier business van. The van is the single most-important component of the courier business. Without it, you wouldn’t be able to make deliveries.
Taking out a courier van insurance helps you to protect the van, especially when it is endangered by liabilities, like accidents and car theft.
A standard courier van insurance offers three (3) types of covers. These are the:
- Third-party, fire and theft cover
- Third-party only
- Comprehensive coverage
A minimum of third-party courier van insurance is required before you can be allowed to operate in the UK.
3. Motor Insurance
This is quite different from the standard courier van insurance policy. The motor insurance policy covers your vehicles, if they get into an accident.
Note that most auto insurance companies don’t extend the motor insurance to business owners, especially courier companies.
4. Freight Liability Insurance
This is also called the Goods in Transit Insurance. As the name suggests, it protects goods being transported to and from the warehouse.
The cover is for protecting or insuring the transported goods against theft, damage or loss while they are being transported.
Note: Certain goods in transit insurance policies may have a limit on the coverage. Therefore, the amount of money to be paid out on theft or damage is subject to the maximum value of the item.
5. Fleet Insurance
This type of insurance policy is needed for courier businesses that have fleets of vehicles or courier vans.
The fleet insurance policy covers up to five (5) vehicles, especially if they are vans. Using the policy also helps you to save money, rather than taking out individual auto insurance policies per courier van.
6. Employer’s Liability Insurance
It is an employee-specific insurance policy, covering any liabilities you (the employer and courier service owner) are liable for.
The employer’s liability insurance pays out the (financial) compensation when the employee(s) becomes injured or ill in the cause of working for the courier company.
7. Food Delivery Insurance
It is a food delivery-specific insurance policy, covering the drivers who are registered with food outlets, including restaurants.
With the food delivery insurance, you get access to different levels of protection for being paid to be on the road to deliver food to customers.
What does Parcel Delivery Insurance Cover?
Getting to understand the insurance needed for courier business starts with the available covers.
Typically, a standard courier business insurance offers three (3) different types of covers. These are the:
Third-Party Only Cover
This type of cover is limited to the third-party damages and bodily injury, including damage to other people’s vehicle.
The third-party insurance cover doesn’t cover your vehicle, but only that of third-parties (others involved in the accident).
Third-Party, Fire and Theft (TPFT)
This type of courier insurance policy covers the basic third-party only liabilities. In addition, it also offers coverage for damages or bodily injury caused to others because of your liability.
The Third-Party, Fire and Theft (TPFT) coverage also covers loss or damage to your vehicle because of fire or theft.
Comprehensive Courier Insurance Coverage
The comprehensive cover covers everything in the third-party only and TPFT coverage options. That means both your vehicle and that of third-parties are covered if the vehicles suffer damage or loss because of an on-road accident, theft or fire.
FAQs
What is the Best Courier Insurance for Van?
The courier van insurance policy is the best policy because it covers the van when it is exposed to certain liabilities, including theft and fire.
Do I Need Insurance for Courier Driver?
You need the courier insurance if you work independently or signed up with a delivery company. The policy covers you and your vehicle from specific perils, including on-road accidents, thefts and fire.
What Insurance do I Need to be a Self-Employed Courier?
You need the self-employed courier insurance, which protects your van if you are an independent courier delivery driver.
What is the Difference between Courier Van Insurance and Fleet Courier Insurance?
The difference between the two is that the courier van insurance covers one or two vans, while the courier fleet insurance covers up to five courier vans.
Final Thoughts
You need to take out insurance policy to protect your vans, employees and transported goods. Now that you know the insurance needed for courier business, choose the one that works best for your line of business and get the right protection today.
