When you work as a freelance courier, you can enjoy lots of benefits like the freedom to choose your hours. But when you’re your own boss, you also have to think about essentials such as what insurance you need. Without it, you could find yourself in financial hot-water if something unexpected happens. So, to save you time and money, we’ve put together this guide on freelance courier insurance and where to buy it at the best price.

What types of insurance do self-employed couriers need?

Some insurance is a legal necessity, and some are just a good idea to have.

1) Motor Insurance

If you have a car, van or motorbike, you’ll need a minimum of third-party insurance by law. This covers the cost of any damage to other vehicles and injuries to people if there is an accident. It won’t pay out for the cost of repair or replacement of your vehicle if it is damaged or stolen. Alternatively, you can take out comprehensive motor insurance, which covers your vehicle too.

Don’t assume that third-party only cover will be the cheapest option. And if you rely on your vehicle for your work, consider if you’d be able to repair or replace your car if something unexpected happens. If you can’t this could seriously affect your ability to work as a freelance courier.

Remember,  not every motor policy comes with a guaranteed replacement car whilst yours is being repaired or replaced. If you need that, make sure it’s included. And if you rely on a certain size car or van, take out a policy with a guaranteed like-for-like car hire option.

Remember: You’ll need a specialist commercial motor policy – an ordinary domestic insurance policy won’t cover you.

2) Breakdown cover for couriers

As a courier, you rely on your wheels. So what happens if you breakdown? Make sure you can get back on the road quickly with specialist breakdown cover for couriers.

3) Public liability insurance

You come into contact with the public every day. And when you do that, there is always a risk that they could be injured or property could be damaged. Accidents can and do happen, no matter how careful you are.

For example, imagine you’re stood waiting for a signature when someone trips on your bag that you’ve momentarily put on the floor. They break their wrist and claim for compensation for both the injury and their loss of wages.

With the increasing number of compensation claims being brought against bike riders, public liability insurance can be especially useful if you use a bicycle to courier items.

Imagine that you accidentally cycle into a pedestrian crossing the road, for instance. They fall and hurt their ankle. They can sue you for the injury caused as well as for loss of wages. Add on the legal fees to defend your case, and it can be a very expensive accident.

Public liability insurance covers your legal costs if a member of the public makes a compensation claim against you. Even better, it puts a legal team at your disposal, so you won’t need to worry about a thing. Instead, you can concentrate on your work.

4) Employer’s liability insurance

Although most freelance couriers are self-employed one-man-bands, if you employ others you’ll need employer’s liability insurance. This is a legal requirement even if your employee only works part-time. It works like public liability insurance, paying legal fees if anything unexpected happens to your employees connected to your business.

5) Goods in transit insurance

Whether your couriering food or packages, you’re responsible for these items whilst they are in your possession. If they are damaged in an accident or are stolen, you may be liable to pay up. Goods in transit insurance covers this liability.

Remember: Most policies will set a maximum single item limit (the maximum amount you can claim for one item). They also normally specify the maximum combined claim limit (the total amount you can claim for multiple items.) You won’t normally know what you’re transporting, so when you calculate how much cover you need make sure you don’t underestimate it.

6) Personal injury insurance

Have you thought about what will happen if you have an accident and can’t work as a freelance courier? Worries over who will pay the bills, especially if you have dependents, can be removed when you take out personal injury insurance. Also known as personal accident insurance, this pays compensation if you suffer a serious accident or die.

Remember: Personal injury insurance for you is not normally included with your vehicle insurance. Whilst motor insurance pays personal injury claims for anyone you injure when you’re driving the vehicle, it won’t pay out if you are injured. That’s why you should consider taking it out as part of your courier insurance bundle.

Finding cheap freelance courier insurance

Remember, you get what you pay for. Cheap courier insurance might not give you the level of protection you need. But you can still find great value for money insurance with these top tips:

Try telematics

Fitting a telematics box to your car or van can mean lower insurance premiums, but only if you’re a safe driver. It records things like speed, braking, and erratic driving. Whilst safe driving is rewarded with lower insurance premiums, if you’re considered to be driving unsafely, your insurance costs can rise.

Use a dash-cam

Installing a dash-cam can save you money on your courier insurance. It clearly records who is at fault in the event of an accident and that can save the insurance company money. You’ll need to pay for the installation of the dash-cam, but this cost can potentially be offset against tax.

Drive carefully

The best way to keep your insurance premiums low is to stay claim-free.

Don’t declare spent penalty points

You must always tell your insurer if you have any endorsements on your licence but beware of over-declaring penalty points. If you’ve had endorsements on your licence for driving offences, check online to see if they’re still valid. If you tell your insurance broker that you have penalty points but they are spent, you’ll be unnecessarily paying over the odds for your insurance.

Beat the thieves

Vans are an attractive target for thieves. Reduce insurance costs by fitting an immobiliser or professional alarm. If you can, park your van in a street with good lighting and where there are plenty of passers-by. Keeping your vehicle parked in a locked garage overnight can also help to lower premiums.

Shop around for the best deal

As with all insurance, it pays to shop around for your courier insurance. But that doesn’t mean hours spent phoning around or trawling the internet. Use an independent broker, like Easy2Insure, which can quickly access specialist policies. Even better, you can trust your broker to find you the right level of cover, so there are no nasty surprises lurking in the small print.

As with all insurance, it pays to shop around for your courier insurance. But that doesn’t mean hours spent phoning around or trawling the internet. Use an independent broker, like Easy2Insure, which can quickly access specialist policies. Even better, you can trust your broker to find you the right level of cover, so there are no nasty surprises lurking in the small print.

Cheaper courier insurance you can rely on

It’s Easy2 find great value freelance courier insurance. Call our helpful team on 0800 917 9522 or get a free quote.