Courier insurance is an important component of any type of carrier business. If the goods that you transport can be easily sold on the black market or are valuable then your business may become the victim of theft. Because of this fact it is important that you have a good level of cover in place to protect your business against the loss or damage of goods whilst they are in your custody.
Because of the inherent risks, policies for courier insurance can be expensive and it will pay to compare what options are currently available in the marketplace. One approach to potential savings is to get multiple quotes and compare what is included and not included and the policy price.
GIT covers the goods that you are in temporary charge of on behalf of a third party (the owner of the goods). So whilst your standard insurance covers your vehicle, goods in transit cover abbreviated to GIT covers your for damage to the goods that you or your company are hauling or transporting.
It is important to be aware that this type of cover can be very particular and does come with common exclusions, for example dangerous chemicals would not normally be included. In addition some insurers may only provide partial cover for items deemed an easy target for theft. Electronic items would normally fall into this higher risk category.
If you receive a haulage request for goods that are different to what you normally haul then you need to consider if your existing cover extends to this new type of goods. On these occasions it is best to first check with your broker if your current cover is adequate. If not you could suggest to the potential customer to provide their own GIT cover especially if it will be a one off job.
Both have similarities, but they are also different. Both have one common feature they both include cover for ‘ carriage of goods for hire and reward'. A premium is derived based on risk to the broker of having to payout and average payout amount. As risk can be greater for haulage the underwriters differentiate these 2 modes of carriage as different and policies are constructed to reflect the difference.
In summary if you are being paid for the delivery of other people's good on a multi drop basis then you should purchase insurance for couriers. The converse is true of haulage cover which will involve moving bulk goods from origin to destination. Multi drop is normally accepted to be 3 or more different drop locations per day.
The cost of cover depends on a multitude of factors some of which you do have control over. One of these is which insurance category the actual vehicle that you use falls into.
These categories normally range from 1 to 20, category 1 contains vehicles that are in general the cheapest to insure. The main factors that are used to determine which group are as follows:
In addition to the appropriate cover for your commercial vehicle you will also require cover for GIT and public liability, the later will protect your merchandise whilst in transit. Make it clear to the broker the types of service or services that you intend to provide.
It is a fact that some brokerages will not cover some materials except if specifically included. For example dangerous chemicals or expensive item such as gold or diamonds are normally excluded if you read the policy details. If at any time you change the types of good that you work with double check with your broker to verify that your existing policy covers the new haulage category.
Any business that has contact with the public leave themselves open to public liability claims, for example if the goods that you are couriering were to fall out the rear and cause injury to passing pedestrians or fellow motorists. In brief public liability insurance helps protect your business against claims lodged by the public for damages caused by your business operations.
Not having this particular type of cover will put your business under financial strain should it be held liable for third party costs which may also include medical care and legal costs.
With any type of insurance it is important to have the right level of cover without over insuring or indeed being under insured. The former means that you have included elements of a policy that you do not need or are unnecessary. Being under covered clearly means you do not have sufficient cover so should a time arrive to make a claim you may find that you are under insured and will be responsible for a share of the costs.