Courier Insurance

Courier insurance is mandatory on roads in the UK for the carriage of goods belonging to third parties, in return for payment. Unlike private insurance, insurance for couriers is designed for commercial services. Essentially, if you transport items for other people as your business, courier insurance is vital for you to operate legally. As a courier, you will handle valuable goods each day, so you might be vulnerable if these are harmed or mislaid while in your care.

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The kind of insurance you need depends on the kind of business you intend to run. There are numerous options on offer for you to customize your policy. Just like standard vehicle insurance, you will require cover for Third Party, Theft and Fire. This will protect your vehicle against these occurrences, and third parties will be insured if an accident happens.

Irrespective of what type of business you run, there are three basic policies you should be aware of. You might be a sole operator or sub contractor, however you will require these types of courier insurance prior to getting any customers.

Public Liability Cover

This will insure you, in the event that you are responsible for an injury, accident or property damage as a consequence of running your business. Public liability cover is useful if the items you transport are dropped or fall out, while being moved from or to your vehicle, and end up injuring someone or harming their property. Sometimes, this insurance is included in other types of policies.

Goods in Transit (GIT) Cover

GIT cover is intended to cover the goods you are moving for third parties. Although vehicle cover covers the car or van you drive, GIT covers damage or loss to any items present in the vehicle. With GIT, it is important to remember that the cover can have exclusions. Often, insurance firms will not insure the transportation of hazardous items, human remains or animals.

Additional exclusions might include items moved when a person moves house. Although a chair being delivered by a retailer might be insured by GIT, the same item being moved from one house to another may not. Also, insurance firms only offer some cover for valuable goods, which they regard as attractive to thieves. This might include iPads, PCs and other popular electronic items. In many instances, insurance firms only offer cover for fifty percent of the value of these goods.

Vehicle Cover

Finally, normal vehicle insurance is inadequate if you use a van or car for business reasons. All courier services require vehicles, so it is crucial to get a policy that is cost effective, and that offers you the cover you need if anything goes wrong. Features like cover for glass, cover for replacement vehicles, legal fees, protected no claims bonuses and variable excess are all a welcome addition.

Regardless of which type of courier insurance you need, you should take the time to research each policy and quotation thoroughly. Read the fine print to learn precisely what you are insured for and - maybe more crucially - what your policy does not cover you for.