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Protect Your Courier Business with Top Goods in Transit Insurance Plans

By Darragh Timlin on November 24th, 2023

For courier and delivery businesses, safely transporting and delivering packages is central to success. However, the risks involved in transporting goods mean investing in comprehensive goods in transit insurance is essential.

With the right goods in transit policy, couriers can protect against potential losses from damage, theft, delays, and other issues that can arise during deliveries. 

Why Goods in Transit Insurance Matters

Delivering parcels, documents, and freight on time and undamaged is crucial for courier service reputation and profitability. Delays and damage can happen despite best efforts though. Goods in transit insurance helps by covering costs associated with:

  • Damage or Loss – If a package is damaged, spoiled, or lost in transit, insurance can cover the cost of compensation to the customer. This protects against revenue losses.
  • Theft – Couriers risk theft of goods in vehicles or from delivery locations. Insurance covers loss claims.
  • Vehicle Collisions – Accidents can damage the transported goods. Insurance covers repair or replacement costs.
  • Failed Deliveries – If delivery cannot be completed due to an insured issue like vehicle breakdown, the policy covers costs involved.
  • Liability Exposures – Goods in transit insurance includes liability coverage for damage your business causes others related to transport and delivery activities.

Without adequate insurance, these issues can seriously impact profit margins for delivery businesses. The right policy brings peace of mind that costs arising from transit mishaps will be covered.

Key Coverage Considerations

When choosing a top goods in transit insurance plan, look for policies that include:

Comprehensive Perils Coverage

This type of coverage protects against physical loss or damage from a wide range of causes including fire, flood, theft, vandalism, collisions and more. It provides extensive protection compared to more limited policies.

Limited Perils Coverage

This more basic insurance covers losses stemming only from defined perils such as fire, theft, collisions. While cheaper, it leaves you exposed to uninsured losses from other causes.

Replacement Cost Valuation

If goods are damaged, this ensures you receive payment based on the full current replacement cost rather than depreciated actual cash value. This guarantees sufficient funds to replace your inventory.

Loss of Profits

Essential coverage to recoup income losses if delivery delays from an insured cause mean orders are late or cancelled. Protects against lost revenue.

Continuity of Transit Clause 

This provides uninterrupted coverage throughout the delivery process, so you remain covered even during temporary storage stops in transit before final delivery.

Deductible Options

Insurers offer choices of deductible amounts – the portion you pay out-of-pocket before insurance covers the remainder. Higher deductibles lower premiums but increase costs you must initially cover yourself per claim.

What Impacts Premium Costs?

Goods in transit premiums are influenced by multiple important factors:

Business Size

The larger your courier business is in terms of delivery fleet size, number of shipments, and overall revenue, the higher your insurance premiums will tend to be. More vehicles, drivers, deliveries, and income mean greater overall risk exposure for an insurer, so they charge higher premiums for increased coverage limits.

Goods Value

Transporting and delivering expensive goods like electronics, fragile items, perishable products, or luxury merchandise brings added risks of significant financial losses from damage, spoilage, or theft. Insuring high-value cargo translates to higher premiums to cover those sizable potential loss payouts.

Vehicle Types

The types of vehicles used for deliveries impacts premiums. Specialised vehicles like refrigerated trucks have much greater insurance costs due to their cargo and modifications compared to premiums for standard delivery vans and trucks.

Distance Travelled

The typical distance your vehicles travel on delivery routes influences costs. Longer transit distances mean goods spend more time in vehicles en route, increasing risks from collisions, theft, delays, etc.

Location Risks

Areas prone to above average crime rates or road accidents pose extra risks for losses during transit. Goods in transit through major urban centres or regions with frequent storms and flooding will require insurers to charge higher premiums because of those location exposures.

Claims History

Your business’s past claims activity is a major factor in premium costs. Too many claims for damage, spoilage, theft or other losses will signal your business is high risk, leading insurers to impose higher premiums in response. Maintaining a clean claims history helps demonstrate lower overall risks to keep insurance costs down.

Tips for Finding the Best Insurance

Follow these tips when shopping for the most suitable goods in transit insurance plan:

  • Review policy terms closely and ensure sufficient coverage for your common cargo types and transit routes.
  • Work with an insurer experienced in covering courier and delivery businesses to access industry-specific products.
  • Provide detailed information about your vehicles, routes, and cargo to receive an accurate quote.
  • Ask about discounts you may qualify for as a business owner like multi-policy discounts.
  • Consider your budget and choose an appropriate deductible amount.
  • Examine exclusions and limitations carefully so you understand what is not covered.
  • Discuss any unique risks your business faces with your insurer.

Protect Your Delivery Business with Brisco

Safeguarding your business with comprehensive goods in transit insurance should be a top priority. The right policy will cover you for costs and income losses when delays, damage, or loss occurs. 

Here at Brisco Business, we offer specialised goods in transit insurance designed specifically for the needs of couriers and delivery companies. Our policies provide extensive cover against losses and damages during transit and deliveries. We aim to provide courier businesses with the most suitable insurance solution while minimising costs through discounts.

With in-depth industry knowledge, our agents can advise you on structuring your policy for optimal coverage and value. Compare quotes today for a quote or to learn more about protecting your delivery enterprise.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

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