A courier is involved in transporting packages to a set destination and ensuring that they are delivered in the same condition that they were sent; they are responsible for the timely distribution of these goods.
Couriers can work specifically for certain businesses to dispatch batches of these packages at one time like for instance, drugs at a pharmacy, textbooks at a school or documents at law firms; this can be both national or international. As a result, couriers work with many clients and should obtain insurance to protect themselves from claims filed against them should they make a mistake.
Types of Courier Insurance
Goods in transit insurance are arguably the most critical type of insurance a courier needs because it protects the courier from allegations that the packages were broken, destroyed or stolen under their watch in the transportation process. This is especially important if the package was valuable, like medication sent to a hospital getting lost or furniture sent to a furniture shop being scratched or broken.
The company will likely sue in an expensive procedure and ensure the proper deliverance of these goods was incredibly important to them. The lawsuit filed would be costly to fight due to the high price of legal representation, and in addition, the item would have to be replaced or fixed. However, the insurance company pays for this if the insurance is obtained.
1. Public Liability Insurance
Public liability insurance covers the courier if they damage the client’s property whilst delivering their packages or unintentionally physically harm or injure the client. This happens all too often when no one is at home or available in the office, and the courier must leave the items in the back of the property where no one else can steal them or break the fence or knocker when attempting to enter the property to deliver it.
In the case of no insurance, the money for repair would be provided by the courier or the courier agency, but otherwise, the insurer does instead with insurance. Additionally, the expense would also be paid if the courier accidentally knocks into the customer and causes them to fall and consequently require medical attention.
2. Electronic Equipment Insurance
Electronic equipment insurance covers satellite navigation systems that provide the route to a client’s address and avoid high-traffic roads and the proof-of-delivery electronic devices that the client has to sign to receive their package. These are vital service instruments, and a courier would severely struggle without them. As a result, if such electronic devices are stolen, destroyed or lost, work would either not operate or be severely delayed, which is why they should be replaced immediately.
The insurance company provides a pay-out for the destruction of electronic devices due to natural disasters like floods or fires or vandalism and theft; it should be noted that the general degeneration of the product is not covered.
3. Personal Accident Insurance
Personal accident insurance is heavily encouraged in professions where you cannot work remotely, and thus if you are injured, you would not be able to go to your job and perform as usual. This means that if you harm yourself either at work or at home, like a broken leg, have burns or cuts, or suffered from an accident that left you permanently disabled, you can file a claim to your insurer. Depending on your policy, be partially or fully compensated for your medical bills and any lost income whilst you cannot work. Obviously, as a courier, you can walk and drive, and any severe physical injuries may prevent you from this.
4. Employers’ Liability Insurance
Employers’ liability insurance is a legal necessity for all company’s that hire workers, and the majority of couriers work for a business; therefore, this applies to them. On the other hand, independent couriers that do not permanently nor temporarily hire workers are exempt. This type of coverage pays for the medical bills of an employee injured directly due to work reasons, for instance, tripping whilst they were transporting goods or dropping a heavy package on themselves. Similarly to personal accident insurance, it will pay for medical bills and lost income, but it differs as only accidents that are job-related whilst at work are covered.
In conclusion, courier insurance can save a courier or courier company from financial loss that could be detrimental to a small business or inhibit a more significant business from developing. Having insurance to cover accidents and claims can save hundreds, if not thousands of pounds, only in exchange for a monthly premium.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Community Group Insurance
Commercial Van Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: