Insurance & Bonding, Part 1: Courier Insurance
We get a ton of questions asking us about insurance and bonding in the courier business, so we’re going to address those questions in a two-part insurance overview.
First up, courier insurance.
What is courier insurance and why do I need it?
Anyone who delivers products or packages for a fee is going to require some form of courier insurance. This is true of massive companies shipping good all around the world as much as it is for the self-employed courier driving documents around a rural area.
Courier insurance protects against theft, loss, and damage to property in the care of the courier.
If you are someone who uses your delivery van to bring bundles of newspapers and containers of magazines to dozens of convenience stores in the area, you will need this insurance. If you are a courier transporting legal and financial documents through the streets of a big city, you too will want to have some of this insurance as well.
What courier insurance will do is prevent you from being held personally liable if the materials you are carrying and delivering are damaged or stolen during transit. They won’t protect the vehicle or the individual, they will only protect the value of the materials being delivered.
Fortunately, a courier service owner will be able to select from a range of policies. For instance, if the courier service is owned and operated by a single person with a single vehicle, and the materials that they frequently transport are not costly or highly valuable then the price of the policy will be quite low. If, on the other hand, the courier service regularly transports things like expensive electronics, controlled substances, or valuable goods, then the policy is going to reflect the risks of the work.
It is important to also understand that subcontractors and employees will require coverage too. If a courier service is experiencing some sort of surge in business, which can occur often around the holidays, they might use a few part-time subcontractors. During such a period they will need to be listed on the vehicle policy, but they will also have to appear in the courier insurance coverage too.
How do I get a policy?
Courier insurance policies are generally inexpensive. The simplest way to get a policy is to call your insurance agent and discuss with them what you need. They can help tailor a policy specifically to your needs.
In our next segment, we’ll continue with a look at bonding, another area we get many questions about.
Click here to continue to Insurance & Bonding, Part 2: Bonding…
IF I LIVE AND DELIVER GOODS IN IOWA ONLY, DO I NEED A TRUCK FOR HIRE FORM FILED ? IF SO, WHAT OTHER DOCUMENTS DO I NEED TO FILE ? I HAVE A TRADE NAME ON FILE.
Courier Insurance is really expensive if you want to insure high end products aswell. Therefore i think it s better to pay for the losses than pay for insurance
this is really good to know,but what if you want to delivery or errand service for banks, lawlyer offices, and or jewlery merchants what is reguired?
Looking into this as a way to generate some income while working on my nature photography business. Finding all the legalities for our area quite confusing! Think we still have a MC# from a previous business venture.
don’t i need to get a mc# and a usdot# and ifta stickers apportion tags?
Albert,
It depends on your situation and location. Often, unless you are crossing state lines, you may not need a US Dot#, for example. Shoot us an email and we can help point you in the right direction for your area.
Best regards,
Sam
good way to start… call local newspapers you can pick up 3-5 hours of work a night netting you up to $2000 per month .. good money if you have a fuel efficient car (im spending $200 a month on gas for a 70 mile per day (3.5 hours) delivery route (300 papers) even after the rediculous 15% self employment tax I’m still bringing in $400 a week… not bad for a college student working 25 hours a week
What are you delivering? And do you have all the ins., bond, etc….
Thanks!
Steve
The insurance companies in Malaysia are unwilling to provide coverage for the goods or documents in transit. Can someone recommend one for me?
i have 1994 pick truck and have 8yrs in trucking im unemployed at the moment. i do have the basics like computer fax mach. and maps and now the city perrty well. i steal have my cdl hazmat and twic card witch means i can get into the ports of hou. what shoud and how can i start . being unemployed i have no money ?
I need to start my courier business as soon as possible. How do I get my first business? Where do I start from?
I am a early retiree from a major airline. I basically fly free almost anywhere in the world.
Is there much of a demand for couriers for secure airport to airport deliveries? Lynda
We found it really tricky to get insurance until we had 2 years under our belt in Australia. Its a bit tricky after the GFC however persistance pays off.