Joining the UK's growing gig economy is a great way to generate some extra income during your down time, but in most cases, being self-employed unfortunately comes with a lot of extra leg work.
For courier drivers, it's imperative that they cover their vehicle with the correct type of insurance - otherwise they could find themselves liable for unexpected damage costs into the tens of thousands.
The first port of call for new courier drivers is to get some public liability cover. This protects you from claims in the event that your car inadvertently injuries someone or damages their property. Since you will be interacting with the public on a day to day basis, it's an essential an unavoidable part of your new job.
You will also need "goods in transit" insurance, which covers the items you are delivering. This is a prerequisite for any courier since you are, by definition, handling another person's property. If you damage, lose or have it stolen, you could find yourself liable for a replacement charge.
Most couriers are self-employed, but if you do start employing anyone else to work under you, you will also need a special type of "employer's insurance", so that they are also covered in the event of any incidents on the road.
If you are about to start courier work, remember that you can't simply use your vehicle's existing insurance premium for general, every day travel - even if you drive in exactly the same way, on exactly the same roads.
To begin with, you need to figure out what range of catchment area your courier services will cover and what sort of goods you will be carrying, as this has a big impact on the monthly rate you will be quoted.
The type of van you have is important too. If it's over a certain weight, you may have to take out "haulage" insurance instead of a regular "courier" package (which is often slightly more expensive).
Projecting future profits is clearly a difficult task in the formative stages of any business endeavour, so you are best off opting for a basic, no-frills package in the beginning to make sure you aren't paying from your own pockets.
We recommend taking a closer look at the following providers:
The literature on Axa's website claims that 10% of its customers pay less than £215 in a year. This is a hugely competitive price - and there are plenty of perks on offer too.
The relatively unknown MCE Insurance has earned a reputation among road users for its reliable, no-frills service. Courier drivers (and bike riders) can get a personalised quote via the website in minutes.
We recommend checking out Staveley Head as a first port of call as its courier van packages are a lot more comprehensive than many rival companies. It also has one or two introductory discounts on offer to help you though that difficult first few months of trade.