What’s The Difference Between Courier Insurance And Goods In Transit Insurance?
Getting yourself properly insured is one of the first really important hurdles when starting a career as a courier or setting up your own courier services. The courier industry continues to grow, providing business opportunities for both individuals and businesses in this thriving sector. However, the need to determine and take out the right level of insurance will always remain integral to those who operate in the industry.
One aspect of this process is determining the difference between courier insurance (whether that’s courier van or courier car insurance) and good transit cover. If you’re a current or future courier and are unsure about this topic, we would highly recommend reading this article!
What is Courier Insurance?
Most insurance companies will brand or categorise their insurance for couriers and delivery drivers as ‘courier insurance’. This is designed to protect you against the risks you face when picking up goods and making multiple deliveries for hire and reward.
Often, the term ‘courier insurance’ is used to refer to cover for your vehicle while you are delivering goods. However, it is not just your vehicle that needs protection while you are on the road. For instance, you also need cover for liabilities, and the goods you transport.
What Does Courier Insurance Cover?
Typically, there are three main types of insurance for couriers:
- The first and most important type is courier van insurance, which protects your vehicle on a third party fire and theft, or comprehensive basis. It is crucial to get a courier van insurance policy if this is your line of work as a standard van, car or commercial van policy will not cover you for the carriage of goods for hire and reward.
- Secondly, liability insurance is important as it comprises cover for public liability (injury to people or their property in the course of your work) and employers’ liability (injury to employees or their property while they work for you)
- Finally, goods in transit cover protects the actual goods you pick up and drop off while working as a courier. This is often not thought of initially when couriers first start out, but it’s incredibly important when handling high volumes of potentially expensive goods. Having this cover will protect you if items are lost, damaged or mishandled in any way during your transportation of them.
Sometimes, companies will include all of the above in their policies for couriers, however, others will only offer certain aspects individually rather than giving you one complete package. This means you will need to add an individual component to your insurance policy yourself, such as goods in transit cover.
What is Goods in Transit Insurance?
Courier insurance as a general term encompasses the different types of insurance you need to carry out work as a courier. The term is often used to refer to courier van insurance. However, goods in transit cover, also known as goods delivery insurance, specifically refers to protection for the goods you are transporting.
While goods in transit insurance is not a legal requirement, it is highly recommended. Many companies and authorities will also insist you have it before you carry goods for them. And making sure you have the right amount of cover in place is important in case of loss, damage, theft or misplacement of items.
Items that can be covered by a policy include parcels, packages, newspapers, and letters. You don’t want to be held liable for the loss or damage to any of these items. Individual valuable items can also be specified on policies, or cover purchased for all items in transit.
If you’re still unsure about the different insurance types and which one you need, whether its goods delivery insurance or liability insurance, get in touch with us at the Insurance Broker today!