Is Courier Insurance a Legal Requirement for Your Business?
By TOI Desk Report May 21, 2022 Update on : December 8, 2022
Courier insurance has become a popular topic of conversation in recent years. The e-commerce industry has grown exponentially, and businesses have become more reliant on couriers to deliver goods across the country or even the world.
Insurance can seem like an optional expense for your small business that you can skimp on, but it’s required by law in many areas.
If you deliver goods or have anything that can be damaged or lost in transit, you need to know about courier insurance and how it works with your business.
Here’s everything you need to know about insurance requirements and what it means for your business today.
What Business Require Courier Insurance?
Courier insurance cover is a legal requirement for businesses that use couriers to transport items that cost more than £750 and might be lost or damaged.
However, it is not just those who handle high-value items who need insurance – commercial vehicle hire companies, mail order businesses, and anyone else whose products are transported by a courier are also required to have a cover.
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As there’s no minimum amount of cover you must buy, it is up to you to decide how much protection your business needs. Knowing exactly what type of risks your business faces is vital when determining an appropriate level of coverage.
While insurance may seem straightforward on paper, accurately evaluating your business’s potential losses can be difficult without assistance from a professional.
What is Covered Under Courier Insurance?
Courier fleet insurance is usually a small form of commercial property insurance that covers your shipment while it’s in transit. However, it would be best if you read your policy closely because there may be other coverages included.
For example, many courier policies include coverage for courier personnel when they are on business trips. This means if an employee is injured or has their vehicle damaged while on a job, you would be covered by their policy if it were bought in conjunction with your company’s policy.
Most policies will also include a third-party liability endorsement which ensures that your business will be covered for any damage to other people or property that might result from a courier accident or failure.
How Much Does Courier Insurance Cost?
Courier insurance is a necessity for any company that sends packages by courier or via post. Unfortunately, despite its importance, insurance is not mandatory.
You can still transport packages without proper insurance, but it is strongly recommended that you get yourself covered. Not only does insurance protect your goods, but it also protects you against financial loss in the event of a mishap.
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The best thing about courier insurance is the cost: estimates vary, but the average cost of an annual policy should be around £500 to £700 per annum. That’s relatively affordable compared to other types of business insurance and isn’t likely to put too much of a dent in your budget.