Couriers insurance is specifically designed to protect businesses using vehicles – bicycle, motorbike, van, truck, lorry – to swiftly deliver other people’s goods and packages from A to B.
Known as ‘hire and reward,’ losing a valuable delivery through theft or accidental damage in transit could prove costly, ie, no reward, just an expensive compensation claim instead.
Hire and Reward policies for couriers generally cover:
- Loss while in transit
- Theft while in transit
- Damage caused by accidents during transit
- Other damage caused during transit
A comprehensive courier insurance policy will also protect drivers and vehicles, and help pay legal costs.
Cost considerations - Hire and Reward
Type of goods
The type of goods a courier carries can hike up the premium e.g. bottled gas, flammable solvents, and what insurers call 'theft attractive' items (computers, cameras, mobile phones).
The risk factors insurers will take into consideration when quoting you for couriers insurance cover are:
- Engine size and total weight of loaded vehicles. Unless agreed, containers or trailers attached to the vehicle could void your policy. Detached trailers might not be covered at all.
- Age and no. of drivers and whether or not drivers are named on the policy. 'Any driver' increases the risk. If drivers have previous motoring/other criminal convictions, the cost to insure them will be higher, while some insurers won’t cover them. Drivers under 25 will incur a higher excess.
- Alterations/additions to vehicles - alloy wheels, lifting ramps, winches or hoists.
- Geographical area covered (eg Europe)
- Whether the vehicles are right hand drive or imported to the UK.
- Poor claims history
- Your attitude to risk and risk management
The ultimate responsibility lies with you, the contractor, to check sub-contractors have the right insurance in place. A Goods in Transit policy will often cover this potential loophole.
Motor vehicle insurance
Legally required as it provides protection in society from the consequences of financial loss from incidents associated with using any motorised vehicle.