As couriers deliver an ever-growing number of goods, from food to grass seed, do they have the right goods in transit insurance in place to make sure they are covered for all eventualities? Your consignment could be left uninsured, or with the minimum cover necessary. Here we look at what goods in transit insurance includes and how to get the right deal for your cargo.
The recent news that supermarket chain Aldi has teamed up with the takeaway courier service Deliveroo to offer grocery home deliveries demonstrates the insatiable demand for online shopping. In normal times, the UK consumer buys less than seven percent of its groceries online, but this has risen to more than 10 percent in recent months, according to market analysts, with demand far outstripping supply. Tesco has more than doubled its number of delivery slots to 1.2 million since the lockdown came into effect and Sainsbury’s is predicted to increase its number of slots by more than 75% to 600,000.
If you are a private hire taxi or delivery driver and want to diversify or expand your business into the lucrative courier market, then you should be aware that appropriate insurance coverage is just as important when you’re carrying goods as when you were carrying passengers.
Courier Insurance
If your car, van and its cargo are to play a central part in your business, then you must have the correct type of cover in place. Even when you use your personal vehicle to deliver time-sensitive parcels then courier insurance is necessary as private car, motorbike or van insurance won’t provide proper cover for this specific type of use. That could leave you perilously vulnerable.
- Courier insurance is designed to protect you against the unique risks you face. That includes:
- Making numerous stops during a single trip
- High amounts of daily mileage
- A collection of cargo types of different values
Courier insurance can also include public liability, employers’ liability and a wide range of different cover types to protect you against every contingency.
Goods in Transit
Changing your business model to courier means that there are particular risks associated with this type of work where your consignment could be lost, stolen or damaged in transit, especially if you’re visiting an assortment of locations, often in a hurry or against deadline. Your policy should also protect you against the risks you pose to other road users as well as their vehicles, property and persons.
Goods in transit insurance covers items from theft, loss or damage while they are being transported by your vehicle from one place to another in the course of business, be it a weekly shop or a set of property deeds. While there is no law to enforce that you have goods in transit insurance cover, it is essential especially for expensive items.
Put simply, couriers are responsible for any loss, damage or theft of their client’s property while it’s in their possession. Effective goods in transit insurance allows you to work safely in the knowledge that if damage, theft or loss should affect these items, you won’t be faced with a hefty compensation bill from your client.
In these challenging times, when key changes to your business operations could likely impact your insurance, now is a good time to assess your immediate requirements as well as for what’s ahead. If you are transporting items of greater value, it’s a good idea to check with your broker to make sure you are fully covered. Some van or courier insurance policies can include an element of goods in transit cover, but it’s often only up to a certain value.
Mitigate Against the Risk
Whether you work as an independent part-time courier, have several vans or even run a courier fleet, if you drive for a living and regularly deliver goods to customers or employ those who do, it’s essential you’re covered by courier insurance with the addition of goods in transit cover.
You can also add public and employers’ liability cover as well as other business insurances that may be needed to create a single policy that meets all your needs. However, policies do vary in terms of the limit on the maximum value per item as well as the maximum total value of your delivery load. So, try and factor in the estimated value of your deliveries when choosing your coverage.
The closure of premises, closure of construction sites, taking vehicles off-road and remote working are areas to consider discussing with your business insurance provider. This will ensure you are fully covered, and changes reflected in your relevant policies.