The Correct Type Of Insurance Is A Legal Requirement
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Having the correct type of insurance is a legal requirement. The minimum legal level for the United Kingdom and most European Countries is Third Party insurance.
Although this level of insurance makes your vehicle legal to drive on the roads it will only provide cover for persons and other vehicles damaged in an accident if the accident was caused by you. It will not provide any cover for the goods you are carrying onboard.
This can be a very costly error and should you cause an accident your customers may expect you to pay for any damage or replacement of their goods. If this should happen the costs could very easily be far more than you bargained for!
As such many customers will refuse to use your courier services unless you can assure and prove to them that you have adequate courier insurance cover.
The cover required is referred to as Goods in Transit (GIT). In order for the insurance company to provide you with a competitive insurance quotation they will need to know the type of goods you will be carrying and the type of vehicle you will be using.
It is advisable to use an insurance company which specialises in courier insurance. Their expertise and knowledge may help you to choose the correct type of insurance for the type of courier service you operate. There are some inexperienced insurance companies who will tell you that light haulage insurance will be okay. Unfortunately this is not the case.
There is a difference between light haulage and courier insurance. Potentially another costly error to make on your part should you need to make a claim or be stopped by the authorities. Having incorrect insurance while driving is an offence which is liable to prosecution and/or penalty points on your license.
If you only carry your own goods you should make this clear to the insurance companies as the level and type of insurance will differ. The premiums may be considerably lower, depending on the nature of the goods and where you are delivering to.
Deliveries made to places which are considered to be a high risk, such as oil refineries or gas stations will incur higher insurance premiums. For delivery in these types of dangerous places you may also need to include Public Liability cover onto your insurance policy.
Should your courier services change in respect to what you are carrying and who you are carrying goods for, the insurance company will need to be informed straight away. Failure to keep them informed may lead to your insurance becoming invalid should you have the need to make a claim.
Courier services which operate a variety of different courier vehicles such as vans, cars or motorbikes will need a courier insurance policy which provides appropriate cover for all the vehicles. A fleet insurance may work out to be a cost effective way to insure various types of vehicles. Speak with the insurance company to see whether this option is viable for your business needs.
Paul Headley is a specialist insurance article writer. Staveley Head are a leading UK insurance broker for
courier insurance
