If you’re planning on starting a courier business, you’re going to need a little bit more than your standard car insurance policy. Whether your van is gathering dust in the garage (we sure hope not!) or zipping up and down the country making drop-offs, it needs to be insured.
Which Van Insurance Policy Do I Need?
Being a courier driver means that you are going to be on the road a lot. As a result, we recommend you purchase a comprehensive courier van insurance policy. Comprehensive cover will protect you against all possible mishaps. Though, of course, we hope that you won’t ever have to use it.
Naturally, premiums on courier insurance policies can be a little bit on the pricey side. But if you want to be fully protected then it’s a cost worth paying. After all, making multiple stops and spending long hours on the road increases your risk-level, especially when you compare it to 9-5 workers who are often able to leave their car in a secure location.
How Do I Choose An Insurance Provider?
Keeping the above points in mind, it’s a good idea to do your research, shop around and get several quotes before buying your courier insurance policy.
Whilst we recommend shopping around, it’s important to note that doesn’t necessarily mean going for the cheapest option. Take it from us when we say cheap isn’t always cheerful. It’s best to have a thorough read of the policy to make sure you’re choosing the cover you need to get (and stay) on the road as a courier driver.
There are lots of insurance comparison sites to help you choose the right policy including Money Supermarket. If you’re looking to save pennies on your journey to owning a courier business, you may also find that some cashback sites like QuidCo will occasionally give you money back for taking out a new policy or even comparing quotes.
What Level Insurance Policy Should I Buy?
When you start looking at all the insurance policy options available, it can become somewhat overwhelming. You want to make sure you have the right level of courier insurance so here’s the breakdown (excuse the pun) to get your started…
If you have 5 or less vehicles in your courier business then you’re going to have to insure each and every vehicle. However, if you have six or more vehicles, you likely will be able to negotiate a better price with an insurance provider.
Take some time to think about which aspects of the insurance policy you really will use and which aspects could you skip for now. If you have to make courier deliveries overseas to Europe, buying European cover as an add-on would be a wise choice.
When buying a courier vehicle, you may find yourself opting for a second-hand van. It’s often a more cost-effective solution. It’s also part of the reason why having Van breakdown cover will make you breathe a sigh of relief. Van breakdown cover will give you peace of mind for when you’re working on the road.
Do I Need Any Other Type of Insurance?
If you work as a courier, then it’s recommended that you look beyond just insuring your vehicle. You should also aim to protect the items you are delivering and also having insurance for the risk you may pose to other road users. Goods in Transit insurance will help you to protect the value of any items that you are transporting if they happen to be lost, damaged or stolen.
To minimise the risk of items getting damaged during transit, we also suggest buying stocking up on some essential equipment before starting your business. This way you can have confidence that you’ve taken extra steps to try to reduce your risk factor.
If you’ll be hiring employees to help ease the load of owning a courier business, then you should consider Employers’ Liability Insurance. This will offer you protection should an employee try to claim compensation should an illness or injury arise as a result of their working conditions. Employer Liability Insurance is a legal requirement and each day without the cover puts you at risk of fines of up to £2,500.
Having Public Liability Insurance can also protect you against any personal insurance or property damage claims made by third parties such as a customer or members of the public.
Be sure to take all types of insurance into consideration, including any potential add-ons, premiums and upgrades as it can often be a worthwhile decision. There is far more to choosing the right insurance than the key points that we’ve touched on today so keep your eye on ‘The Tools’ page for further updates.
In the meantime, if you want to talk to us today about getting your courier business off the ground, please contact us now.