The most important thing you need for your safety to become a courier driver is courier insurance. No matter if you want to become a courier driver for a company or if you are self-employed, it’s essential. Because a product being damaged or lost, and becoming injured while driving, may drain you financially. That’s why I am going to tell you the courier insurance requirements.
The process of getting courier insurance for you or your employees can be complicated. It isn’t easy to understand its whole cover. And if you don’t want to pay extra for your cover or don’t want to miss any legal need for your insurance, then read this blog to the end. Because Bearcat Express always has a solution for your problems.
What is courier insurance( package delivery insurance)?
Courier insurance or delivery insurance is a commercial auto insurance for the drivers of vans, cars, and motorbikes who deliver goods for payment or rewards. Courier auto insurance covers you and your business from financial loss due to theft, product loss or damage, liability claims, increased mileage, more frequent stops, and accidents. If you are thinking that standard insurance policies will cover all damages for you, then you are wrong. You can’t claim compensation for damage to the goods you are transporting, since the goods aren’t covered by their policies.
Courier insurance requirements
Courier insurance has compensation for both the business and the parcels being delivered. Here is the breakdown of what insurance covers:
Goods in Transit Insurance
Goods in transit, like legal documents, donated organs, and high-value items, hold the same importance, value, and cost as your vehicle. Your customers’ parcels and you are protected from damage, loss, accident, or theft during delivery with goods in transit insurance. This insurance is valid from pick-up time to delivery. It’s not one of the legal courier insurance requirements, but still, many customers will insist that you have this insurance. You will be responsible for all loss costs without courier insurance. Are you able to pay the compensation for the loss to customers?
Public liability insurance
While doing your job, accidents may happen. In such a case, people may claim compensation from you. When you accidentally cause damage, death, or injury to the public while doing your job, public liability insurance pays compensation. Public liability insurance is also not a legal requirement for couriers.
Employers liability insurance
For businesses:
Employers’ liability insurance is for businesses like Bearcat Express that hire other couriers and staff for delivery. This insurance will cover all the costs of an employee if they get injured or fall ill during their job. And it’s one of the legal courier insurance requirements in the U.S.
Courier insurance for self-employed:
For self-employed individual couriers, it’s not required legally.
For employees:
Even for employees, this insurance is a requirement. Any accidental loss incurred by you will be covered in this insurance.
Courier fleet insurance:
Courier fleet insurance is for businesses that own three to four vehicles. And it’s a legal requirement. Under a single policy, it provides coverage to all the vehicles, which is also a value for money. Another benefit is that the management of the situation becomes simpler.
Vehicle insurance
Vehicle insurance is the central and foundational part of every delivery insurance policy. I will explain Motorbike courier insurance and courier van insurance because these two are the most commonly used in this field. I broke down three common types of motorcycle courier insurance and courier van insurance.
Types of courier insurance
Liability insurance or third-party only
Third-party only courier insurance is basic standard cover. This level covers only the damaged vehicle and the property of other persons. It just protects you from the damage and financial loss from third-party loss. But it does not provide any compensation for you and your property loss.
Fire theft and third-party
It includes all the features of third-party only insurance. Indemnity to this also covers damage and loss from theft, lightning, fires, and explosions. The third-party, fire, and theft insurance provides compensation to you and your vehicle from natural and human disasters.
Comprehensive cover
This is the most premium insurance cover, but it is a little expensive. Was it your fault in the accident? No problem. Don’t worry, comprehensive cover will pay for your mistake. Likewise, it will pay for damage caused to a third party or their vehicle. Along with this, it also involves fire, theft, and third-party benefits, which makes it the highest level of insurance.
READ MORE: How much does a courier service cost?
Conclusion
Becoming a courier driver is not just what it needs to be. If you are serious and want to run a successful business, then courier insurance isn’t an option; it’s compulsory. No matter whether you are running a business, an employee, or self-employed, legal courier insurance not only saves your money but also time and makes you stress-free.
Bearcat Express fulfills all courier insurance requirements and offers all insurance and guarantees to all types of logistic deliveries. Insurance coverage has competitive rates and the protection that you need. Request a free quote now to get the best delivery driver insurance cost.
FAQs
Q: Why do I need courier insurance?
A: Standard insurance is not made for commercial use or businesses. So it will not cover damages, loss, or stolen parcels. In addition to this, you can have penalty points on your license, fines, or even be disqualified from this job role. On the other hand, courier insurance that meets the legal requirements protects you physically, mentally, and financially.
Q: How much does courier insurance cost?
A: This question does not have an exact answer. Because courier insurance cost depends upon many factors like vehicle type, vehicle age, goods type, driver age and experience, damage you made, route, parking, any previous damaging record, and insurance type.
Q: Is employer liability insurance compulsory in the USA?
A: Yes, employer liability insurance is compulsory in the USA, but only for businesses and employees, not for the self-employed.
Q: Is public liability insurance required in the U.S.?
A: No, public liability insurance is not a legal requirement in the U.S.
