If you deliver newspapers, packages or documents for a fee, you need coverage for this property while it's in your car or truck. Courier and delivery service insurance is designed to protect small businesses that operate locally or even across state lines delivering a wide range of goods including:
Courier Service Insurance is a specialty insurance product that will cover an individual or a small business delivering materials or products for a fee. If you are self employed, delivering newspapers or mail on a rural route, for example, it's likely that you'll need Courier Insurance.
While you probably already have an auto insurance policy on the car you drive for deliveries, most auto insurance policies exclude coverage for delivery services. A policy specifically designed to cover your courier service business will ensure that you're not personally liable if the materials you're delivering are damaged or stolen.
Even couriers who are under contract to one company should check with their employer about the amount and type of coverage they need. Your employer might provide Cargo coverage for the packages you're delivering, but could still require you to carry higher limits of liability on your car or truck. A larger company with multiple drivers may purchase a policy that covers its drivers in any truck in its fleet. In this case, its drivers would not need a personal policy.
The more valuable your cargo, the more insurance you need. It's that simple. If you're delivering medical supplies or medicines, the risk of loss is greater than if you're delivering documents to an attorney's office. Your insurance company will customize a policy for the type of delivery, as well as the miles driven and whether it's local or long-distance travel.
If you drive your personal auto for deliveries, and your employer has a liability policy that covers you, be sure to confirm that you're covered for personal travel, too. If the company policy only covers business travel, you still need to buy your own auto insurance policy.
When you drive a car or truck that's owned or leased by your employer, the business itself will have a policy to cover the delivery vehicles. But, be certain that you're listed on the policy. You should give the company a copy of your driver's license and be aware that most companies will check your Motor Vehicle Report (with your permission, of course). Companies may decline to hire or insure you if you've had a recent accident or traffic tickets, because the cost of insurance will be greater.
Not all couriers need more than the minimum insurance necessary for operation. If the goods to be transported are relatively inexpensive and not subject to any particular legal liability, the cost of goods protection may outweigh any possible benefits. However, if you transport sensitive material such as financial documents, insurance against loss or theft could be vital. And, remember that basic coverages such as Bodily Injury and Property Damage Liability, as well as Uninsured Motorists coverage will protect you, your family and your personal assets, as well as your employer if you're responsible for an auto accident while working.
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