Couriers work hard each and every day to get our parcels and mail delivered to us on time and in good condition, but with hours on the road and going from door to door comes a level of risk that many people don’t automatically think about.
From the risk of car accidents that lead to parcel damage, to the theft of goods from the back of a van, couriers and their loads can face a significant amount of risk, especially during the winter months. Thankfully, there are insurance products available to help ease the financial burden of loss or damage of goods while in transit.
What Is Goods In Transit Insurance?
Goods in Transit insurance is an insurance product that covers items in transit against theft, loss, or damage while they are being transported from one place to another during business activity. Different levels of coverage can cover different amounts, values, and even domestic or international shipping depending on the policy and its coverage level. Generally, however, most policies will cover the transportation of goods within a vehicle here in the UK as standard.
It is worth noting, however, that most Goods In Transit cover only insures goods and parcels while you are on the move or loading or unloading the vehicle, and not necessarily while the parcels are stored within a vehicle at the depot, such as overnight. You will need to consider additional insurance coverage for parcels being kept at a depot. Similarly, Goods In Transit doesn’t cover the vehicle itself so you will also need to find an appropriate car, van, or HGV insurance.
Do I Need Goods In Transit Insurance?
If you are planning to become a courier, Goods in Transit insurance is a must for protecting yourself against claims made by senders and recipients of parcels and haulage goods. With a good Goods In Transit insurance policy, you can safeguard yourself and your business against the financial losses and compensation associated with lost, stolen, damaged, or delayed parcels. This is particularly important if you are regularly transporting expensive or high-value goods, as you can claim back the costs of high-risk parcels rather than footing the entire bill yourself.
Couriers have minimum protection for goods via limited liability in the event of loss, damage, or delay, however, with an additional Goods In Transit cover, you can rest assured that both you and your customers are protected in the event of a claim. Without it, you could face loss of profits, reduced customer retention, and even loss of productivity.
Managing Risk As A Courier
While Goods In Transit insurance does provide you with protection, there’s no better way to ensure the safety of your haulage than with prevention methods. Good risk management can also help to improve the cost of your Goods In Transit cover with some insurers, so it’s important to not only conduct proper risk assessments regularly but to act on any risks you might find and put suitable security measures in place. Some of the things you can consider include:
- In-depth driver vetting if you have employees – Making sure that you’re hiring good and experienced staff can make all the difference when it comes to reducing risk and preventing accidents. The insurance policy could cost you more with drivers that are inexperienced or under a certain age and while this shouldn’t affect who you hire necessarily, you should consider making sure that your drivers are carefully interviewed to ensure that they are fit for the job.
- Increase the security of your vehicles – Whether you operate alone or you have a fleet, making sure to secure your vehicles while out on the road is important. Everything from dash cams at the front and back of your vehicle, to secure locks and alarms can add a level of security to the vehicle and help to prevent theft. You could also consider putting speed limiters on vans to help protect speed-related accidents from your employees.
- Use in-depth tracking systems – Using apps and services that allow you to not only keep track of what has and hasn’t been delivered, but that will also allow for signed-for parcels, pictures as proof of delivery, and easy updating if something goes wrong can help to add to the efficiency of your courier business. It can also provide you with an additional level of support if you find yourself facing a claim.
For information about courier insurance and how it can help you with your courier business, get in touch with Ashburnham Insurance. We can find you the best quotes for your business and haulage expectations to ensure that you are fully covered. Simply give a member of our team a call for FREE on 0800 1696137.