Parcel Delivery Insurance

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If you’re you’re a self-employed courier that specialises in parcel delivery for consumers or small businesses it’s crucial you have the right parcel delivery insurance in place before you take to the road, because accidents can happen when you least expect them. Luckily, the right insurance can cover the cost of damage and save you from financial hardship – here’s what to consider.

What is insurance for parcel deliveries for?

It’s a type of insurance policy that’s aimed at covering the hazards you face as a parcel courier. Policies take into account the increased risk of an accident occurring because you’re:

• Covering more miles than the average driver
• Delivering parcels in all different types of weather conditions
• Making multiple parcel drop-offs often to a tight time schedule
• Carrying parcels that could potentially make your vehicle a target to thieves.

What does parcel delivery insurance cover me against?

Parcel delivery insurance is typically a combination of different types of insurance bundled together to give you well rounded protection.

Bear in mind that insurers set their own terms and conditions so policies may or may not include certain features as standard. If a feature you need or want isn’t automatically included in a policy, then you’ll usually be able to add it on for a small fee. Features worth considering, include:

• Hire and reward insurance – compensates you if the items you’re carrying are lost, damaged or stolen. Policies usually have a limit to the amount you can claim per item, but this will vary by insurer.
• Legal expenses insurance – covers solicitor fees and court costs if you need to defend yourself or claim for damages.
• Public liability insurance – compensates other people for injury or damage you cause through your work activities, for example if someone tripped over boxes you unloaded.

Do I need parcel delivery insurance?

If you’re using a car, van or motorbike to deliver parcels your standard insurance policy won’t cover you during those journeys – you’ll need parcel delivery insurance instead.

Driving without appropriate insurance doesn’t just mean you could be held financially responsible for damage and compensation, it’s against the law. As a result, you could face a fine or even have penalty points added to your licence.

How much does parcel delivery insurance cost?

Cost depends on the level of cover you choose and whether or not you decide to add on any extra features. Insurers also take into account a number of other factors that are unique to you, for instance:

• The type of vehicle you drive – larger vans are more likely to attract higher premiums than scooters or small cars
• The value of the parcels you’re delivering – high value items can increase the cost of cover because they’ll cost more to replace if stolen.
• Your location – if you live in a busy or congested area, you can expect to pay more than a parcel delivery driver based somewhere quieter and with less traffic.
• Your driving record – having points on your licence can mean you pay more for insurance.

With all this in mind, premiums can vary significantly but it’s vital to ensure that any policy you choose actually gives you the protection you need. While cheaper policies can be tempting from a financial point of view, they could come with a host of limitations and exclusions (events that aren’t covered).

In contrast, policies that might appear expensive may have fewer exclusions and offer better overall value for money.