Delivery and Courier Insurance

What is Delivery and Courier Insurance?

Delivery and Courier insurance is insurance that covers courier companies, whether large or small, and courier drivers against risks common to their industry. The amount of cover you get depends on what’s included in your policy. If you’re in the parcel delivery industry, you can benefit from this type of policy. If you’re into large-scale logistical shipping and transportation, you could also benefit from this type of cover.

How Does Courier and Delivery Insurance Work?

Any business involved in logistics and moving products between locations faces higher risks related to the road. In South Africa, accident rates are high, as are theft and hi-jacking. To protect your fleet, drivers, cars, and the items being transported, the right cover is essential.

This is where courier and delivery policies come into play. Drivers can get cover for accidents caused when their vehicle is being used for business purposes. Personal car insurance plans don’t usually cover accidents that occur while you’re using your car for work.

Large and small courier companies often get this type of insurance policy to protect their drivers and vehicles from damage, theft, loss, and third-party claims. Insurance for couriers is designed to protect them against the unique risks related to their industry. Often, courier and delivery insurance is not a standalone product but forms part of a larger business insurance portfolio.

What Does Business Courier Insurance Cover?

The cover you get depends on the policy you choose. A good courier insurance policy can include public liability insurance for when you or one of your drivers causes damage to a third part or their property while working. They usually include corporate fleet insurance or vehicle insurance for companies. If the driver or company faces injury claims due to an accident or property damage, this policy protects them from the financial implications.

To get protection for the packages being delivered, companies can get stock or stock-in-transit insurance. You won’t need to worry about legal costs and the costs or repairs, medical bills, and other financial risks. As long as an event is insured, based on the wording of your policy, you have cover.

How Much Does Courier Insurance Cost?

How much you pay depends largely on your level of cover and the delivery insurance company you choose. Your delivery service can enjoy cover that is minimal but covers your largest risks, such as third-party claims. Or, you could purchase a courier insurance policy of a more comprehensive and includes additional protection against risks. More comprehensive plans usually cost more. The benefit of these types of plans is that if an insured event occurs, you are covered.

Is Courier Insurance Worth it?

In short, yes, and here’s why. You may feel it is an excessive form of insurance or not necessary, but think about the following situations where your cover could come into play:

What if you are your company’s only delivery driver and you use your personal vehicle to make deliveries. If you cause an accident, say while driving to deliver an overnight service package, what would happen? Your insurance provider probably won’t cover the costs when you try to claim, since you were using your personal car for work. The vehicle will need corporate car cover that often forms part of a courier or delivery policy.

What if you’re robbed while delivering private and confidential legal documentation, and in the process the private information is compromised? Your client could sue you for the damages. If you have courier cover that includes liability or indemnity cover, you can claim for this eventuality.

What if your delivery driver delivers a package by placing it on the pavement, and a jogger trips over it as they pass by, breaking their leg? The jogger could sue your company, and the delivered package could be damaged and need to be replaced too.

These are just a few examples of the many situations where this type of cover could give you peace of mind and help you out of a tough financial pickle. So, do you need it? It’s up to you, but a smart business owner and driver can recognise the deep value of this type of cover and the resulting mitigation of risks.

Do Delivery Drivers Need Insurance?

Yes, delivery drivers need insurance tailored to their unique risks. A personal car policy won’t cover the driver and car and third-party claims if an insured event like an accident occurs while the driver is using the vehicle for work. All courier and delivery vehicles should have adequate cover.  What insurance does a courier need? They can benefit from public liability cover, professional indemnity cover, commercial auto insurance or fleet insurance, and stock-in-transit cover.

When you’re getting quotes for courier and delivery insurance in South Africa, it’s a great idea to ask the courier insurance company you speak to whether public liability cover is included in their offer. This type of cover is ideal for courier companies and drivers, but not all options include it.