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.
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.