Courier insurance is vital if you’re looking to deliver goods to your customers from your business on a regular basis.
No business owner wants to spend more money than necessary, and insurance does at times feel as though it’s incredibly costly.
However, in the case of courier insurance, it’s a necessary evil.
Here’s everything you need to know about courier insurance.
Know the Legal Requirements
Courier insurance is a legal requirement unless your company’s van is declared off the road. This can be done through making a SORN declaration with the DVLA.
This is something that the government has been clamping down on recently and if you’re found to be in breach of the law by not having the correct level of insurance, then you could be fined £1,000 and may even have your vehicle seized or destroyed.
Getting your van insured for courier services isn’t a matter of penny pinching, it’s a matter of ensuring you meet the legal requirements.
Pick an Appropriate Level of Cover
The level of cover that you require will be dependent on how often (and how long) you’re out on the roads for. If you’re making regular long distance journeys then it is well worth investing in a level of cover that suits your needs and protects you against every eventuality.
However, it’s important that you’re aware of the costs involved here.
Premiums for courier insurance tend to be quite high because they’re perceived as being very high risk for insurers due to the long distances, frequent trips and time constraints associated with the job – especially as many van drivers work against the clock. In addition, vans are regularly targeted by thieves who believe that they are filled with equipment over night (even if such as assumption is incorrect).
In fact, the Ford Transit Van is the most frequently stolen vehicle in the UK, making it expensive to insure.
Do You Need It?
As there’s likely to be a large financial cost when it comes to courier insurance, you’ll have to stop and think if you really need it.
If you’re making infrequent or short trips, then you may be better off using a courier service like TNT Direct for your deliveries, as it will probably work out cheaper than a year of insurance.
If you decide that you do need it, then ensure that you shop around for the best possible deal using price comparison websites. This way you’re guaranteed to not spend a penny more than you need to.