Courierology :

This is the 'courier insurance' you need when you carry other people's goods 'for hire or reward'.

As with ordinary insurance, there are the usual options such as replacement van, glass cover, legal costs, amount of excess, and protected no claims discount (NCD).

If you are over 25 the cost for a small van policy is likely to be anything from £1,500 to £2,500 before NCD. If you are under 25 you will find it difficult to get courier insurance.

switching to van insurance

If you are keeping your car as well as running a van, you probably won't be able to get any NCD on the van insurance. But if you are getting rid of the car, most insurance companies will give you the same NCD.

courier or haulier?

You may be able to get cheaper insurance by taking out a policy for light haulage instead of courier insurance, although not all companies offer light haulier insurance.

Light haulier insurance usually restricts the number of loads you can carry in a day, and might limit cover to carrying 'pre-booked' consignments. And some courier companies won't sub work to you unless you have 'proper' courier insurance, so ask around first.

Whatever insurance you go for, check the wording of the policy, and any exclusions, to make sure you will be covered for the kind of work you will be doing.

other exclusions

Most policies will not cover you if you leave the van unlocked — especially if you have left the keys in — even if you have only left it for a few seconds.

And there may be other exclusions you need to know about. For example, some policies won't cover you if you are carrying hazardous goods, and driving at airports is another common exclusion. So if you think you will be doing this kind of work make sure you get a policy to cover it.

The other type of insurance you must have is goods–in–transit (GIT), which covers loss or damage to the goods you are carrying for other people.

GIT insurance will probably cost in the region of £300 a year, and you won't get any NCD.

check the policy!

As with any insurance, you need to check the wording of the policy to make sure you are adequately covered. And for GIT the list of exclusions can be longer than the rest of the policy.

The most common exclusions are for hazardous goods, livestock, human remains, and all kinds of other stuff you had no intention of carrying anyway. But there might be some items on the list you did want covered.

There is probably a list of 'theft–attractive' goods like computers, cameras and mobile phones. They might be excluded, or cover limited to 50% of their value.

A lot of GIT policies exclude items that are part of a house move, so carrying a table somebody's bought on ebay is OK, but if a customer wants you to deliver personal effects when they are moving house you might not be covered.

If you get asked to carry something you're not covered for, ask the customer to arrange their own cover. Or you might be able to cover it with your insurance company for a one-off extra premium.

keep it locked

As with vehicle insurance, the insurance company won't pay out if stuff is taken while your van is left unlocked, even if you are actually unloading at the time. Other times the goods are probably not covered are when you are in services getting a meal, or overnight if the van is not in a locked compound.

door to door cover

Some GIT policies will only cover the goods while they are being carried in your vehicle — not while you're walking along the street, or taking them on a trolley through an office, or carrying them up the stairs. As with everything else, check the policy and make sure you are covered for the work you do.

You can usually get public liability insurance bundled with GIT for a small extra charge.

It covers you for damage or injury to other people or their property — like, for example, if you put a box down on the pavement and somebody trips over it and breaks their leg.

But if you didn't take adequate care to avoid the accident, they might not pay out. Or if it was on a customer's premises and you weren't following their safety rules. So check the policy to see exactly what it's covering you for, and where.

Most owner drivers don't need employer's liability insurance.

It used to be a legal requirement for limited companies, but that has changed and if you are the only director of a company you don't need it.

Using subbies doesn't usually count as employing people, but if you do employ anybody, whether you are a sole trader or a company, you'll need to get employer's liability insurance.

Most insurance will only cover you within the UK, although the Republic of Ireland is sometimes included.

If you travel in Europe you'll need to arrange extra cover, which might include a 'green card' for your vehicle insurance and 'CMR' cover for the goods. Check with your insurance broker or company, and read the policy wording carefully.

There are specialist brokers who deal with insurance for couriers and light hauliers, and they usually deal with taxi insurance as well.

Shop around and get quotes for prices, but price isn't the only thing to consider. Check the exact cover you'll be getting, and ask around among other couriers to find out what the service is like if you make a claim.

Most companies will give you the option of monthly payments on vehicle insurance, and some will do this for GIT too. There is usually a setup charge and/or interest to pay, so check before you buy.

And ask about cancellation. A lot of owner driver businesses go broke in the first few months, and if it happens to you, you don't want to be lumbered with a year's worth of insurance payments.