subject: Learning About Courier Insurance [print this page] A courier is someone who delivers items to other people and gets paid for that service. There are courier companies and independent contractors who specialise in getting packages from one place to another quickly and safely.
There are many types of deliveries that couriers can make including newspapers, mail, magazines, legal documents, correspondence between companies, medical samples and products. Once the item is picked up from the originating location, responsibility for the item belongs to the courier until it is delivered to the destination location. If something happens to the item while in transit, the courier may be liable. Courier insurance, though, will cover this.
Who needs courier insurance?
Any independent contractor or self-employed courier should carry insurance. For couriers who use their vehicle for deliveries, you may think that your auto insurance policy will cover the items in your possession if there is an accident. It is possible that this is the case but you should carefully read your auto policy before opting out of additional insurance. Many auto policies have waivers excluding items that are deliveries from coverage, meaning you will have to pay for their replacement if they are destroyed. However, getting additional specialty insurance that specifically covers deliveries will take care of it.
Couriers who work for large firms should ensure that they are covered sufficiently by the corporation. If not, a personal policy may be necessary. However, most larger companies insure their entire fleet of vehicles and any driver who may use them.
Choosing the amount of coverage needed
If you have determined that you need courier insurance, you will need to start shopping around to get quotes. Not all insurance companies carry this type of specialty insurance so you will need to check around to find companies that offer it. Then you will need to determine how much coverage you will need. The more coverage you have, the higher the premium will be. You should carefully analyse your potential risk because you do not want to be underinsured. Likewise you do not want to waste money by being over insured and paying for coverage that you will never be liable for.
Consult with your insurance company to determine your needs. If you deliver items locally, your insurance will likely be less than if you travel outside your local area. The type of cargo you are transporting will also determine the possible coverage that is needed. If you are delivering items such as newspapers or magazines, the minimum coverage will likely be sufficient to simply cover the loss of the items.
However, if you are transporting legal, medical or financial documents or medical samples, your potential liability may be greater. The sensitivity of these items may expose you to even further liability should there be an accident, loss or theft. So, before choosing the amount of insurance you will need on a long term basis, make sure your insurance company is aware of the types of deliveries you make so they can help you obtain the amount of insurance ideally suited to your business.
by: Neil Anderson
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