March 9, 2019
fast delivery truck

Increased costs for Couriers who offer same day service

Increased costs for Couriers who offer same day service because the e-commerce rising to new heights, the need to deliver the packages so hastily has vastly increased in the UK and other locations in the world. This has placed more demand on the couriers and their business to meet this very short deadline. If this is not curbed the cost of courier insurance and thus the service costs will also see a big increase. 

The new gig economy

The new term for e-commerce is gig economy. This is in reference to the transformation that has occurred where people use their computers and cell phones to shop for which the items purchased must be picked up and delivered instead of going to retail stores.

What is causing the increase in risk that could affect their courier van insurance?

With most courier services offering 30 to 60 minute guaranteed pick up and same day delivery of those items to anywhere in the UK, the pressure is on. With this type of service guaranteed by many of the courier services the drivers are placed under extreme pressure to make the deadlines. 

Because of this increased pressure the University of London conducted a study in the effects on courier drivers. The results showed that 42% of the courier drivers had damaged their vehicles while performing their duties. Of this involved in an accident 10% of the accidents resulted in an injury.

The UCL report looked into the increase risk factors that have lead to more accidents and injuries for courier drivers. These factors included the following;

  • Courier drivers are becoming more tired because they are spending more hours on the road traveling farther to meet the needs of their job.
  • 45 degree angle or more to one side from the center of the drivers view is the legal place for a smart phone to be located.
  • Speeding and running red lights is now more common from the pressure applied to the drivers just to meet the time window assigned to the courier driver to deliver each package.
  • Only 25% of those surveyed felt their company cared about their safety while performing their duties.

  • Self employed couriers are at a high risk of exploitation due to recent deregulations in the courier business sector.
  • 63% of courier drivers have not received any safety training from the company they work for.

What are the effects on courier van insurance?

The report stated that recommendations have been made to the Department of Transportation to reduce the risk factors that have been identified. The chances are that courier drivers are involved in more accidents and are receiving more traffic tickets which will lead to higher courier insurance premiums.

​Ways to protect your courier drivers

  • 1
    It has been suggested that the use of time blocks for paying couriers instead of a drop off rate of packages would reduce risky driving habits.
  • 2
    The reduction in pressure that is being applied to drivers when making deliveries should also occur.
  • 3
    Have meetings on safe driving habits.

Courier motorcycle insurance like all other types of insurance rates sets a premium by the risk factors involved. With the increase in risk due to the gig economy, courier insurance will begin to rise unless a company reduces the risk.

Eamonn Turley

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