30 July 2021

Keep your couriers moving with a robust motor policy

By Wright Insurance Brokers

Couriers move all over the country, transporting packages, equipment and even scientific samples as quickly as possible. As such, they face numerous risks due to the nature of their job, including accidents, injuries and theft. Whether you are an owner of a courier business, or a courier yourself, you need to be aware of the risks that drivers face.

Many courier businesses are unaware that if their drivers, franchisees or subcontractors are involved in a road traffic accident while working and do not have the proper motor insurance that notes Courier as the Business Description  and Hire and Reward as the Vehicle Usage, the business itself could be held vicariously liable for compensation or be subject to criminal prosecution. Often neither the driver nor the business owner knows that the driver lacks the proper insurance until it is too late. Ensure your courier business is covered against this liability exposure by assessing your risks and the insurance covers of your franchisee or subcontractor panel.

Why couriers need the correct insurance

Couriers need to possess the proper motor insurance to carry out deliveries—allowing them to drive without it is against the law and exposes your business to potentially ruinous liability claims if your drivers cause third-party injury or damage. Additionally, the guards are on the lookout for improperly insured vehicles, which can lead to fines, points and even seizure of the vehicle.

Courier businesses sometimes assume that employees who drive their own vehicles for work will obtain their own motor insurance. But standard private motor insurance policies typically do not cover drivers’ business use of their vehicles—they often only cover personal use. However, even if drivers request a business use extension on their policy, business use may not cover courier use.

Drivers typically must extend their private car insurance policies with the purchase of carriage of goods for hire and reward cover. Carriage of goods for hire and reward covers a courier’s liability when something is delivered from one place to another for a fee. Unless the insurer is specifically told that the driver is a courier and attaches the proper hire and reward extension, the courier is likely to be driving without proper cover.

Businesses may be liable for accidents and injuries if their couriers are not properly insured. Overcome extra risk with a robust motor policy that keeps your couriers moving.

If your business relies on business-owned vehicles for deliveries, such as cars, vans, motorbikes and mopeds, make sure you have a proper commercial motor policy to cover the delivery use of vehicles. Be sure to inform your employers’ liability insurer that you deliver a range of items, as this is a material fact that could void your policy or entitle the insurer to seek compensation from your business if not disclosed.

Whether you require cover for owner drivers or for employees using business-owned vehicles for deliveries, Wright Insurance Brokers can help you make sure that your business and its couriers are protected. Contact our team on 076 8885988 or make an enquiry here.