Which courier insurance do you need?
As a courier, you need the right courier insurance. It protects you, your vehicle, and your cargo.
In this guide, we’ll cover the key types of insurance every courier needs.
Hire and Reward Insurance
Hire and Reward insurance is a basic legal requirement. This courier insurance covers you when you transport goods for payment and is different from regular car insurance, which does not cover business use.
Why is this insurance so important? First, it protects you. If you have an accident while delivering goods, Hire and Reward insurance will cover the costs, including damage to your vehicle, other vehicles, and any medical expenses.
Second, getting caught without this insurance can result in heavy fines. It can also mean losing your license.
In short, Hire and Reward insurance is not just a good idea, but a must for every courier.
Goods in Transit Insurance
Goods in Transit insurance is another necessary type of coverage. This courier insurance protects the goods you are carrying in case of theft, loss or damage. If something happens to the goods you are transporting, Goods in Transit insurance will cover the costs.
As a courier, you are responsible for the goods you carry. An accident with a large claim can be ruinous for your business if you don’t have the right level of coverage. To prevent this, CX requires all couriers on the platform to have at least £5,000 in Goods in Transit insurance coverage.
This courier insurance is especially important if you carry high-value items. But even if you transport everyday goods, you’ll still need it. Accidents and theft can happen at any time, but with Goods in Transit insurance, you have peace of mind, especially in the busier locations for couriers.
If you want to work in Europe, you’ll need additional cover. CMR insurance covers you for international transport, and is a legal requirement in many European countries. CMR insurance covers you for loss, damage, and delay of goods during international transport. Without it, you cannot legally transport goods across borders in Europe.
Operator Licence
If you plan to operate in Europe using a van with a maximum authorised mass (MAM) over 2.5 tonnes, you’ll need an Operator Licence.
This licence is required for vehicles that carry goods for hire and reward. It shows that you meet the requirements for operating commercial vehicles according to EU standards.
Getting an Operator Licence involves several steps.
- First, you need to prove you have the financial means to run a courier business. This means having enough funds to maintain your vehicles.
- Second, you need to show you have a good safety record. This includes regular vehicle checks and proper maintenance.
- Third, you must prove that you have the necessary professional competence. This usually involves passing a transport manager exam, hiring a certified transport manager for your business, or contracting an external certified transport manager.
Once you have your Operator Licence, you need to keep it up to date. This involves regular checks, audits, and keeping accurate records of your operations.
Choosing the courier insurance right provider
Finding the right insurance can be a challenge. That’s where our recommended insurance partner, Business Choice Direct (BCD), comes in. They offer comprehensive insurance solutions for couriers, including Hire and Reward and Goods in Transit insurance.
Our partnership with BCD means that all Courier Exchange members have access to their exclusive insurance products at competitive prices. BCD not only price-match on any like-for-like van policy, but also ensure that your cover is tailored to the specific needs of your business.
Conclusion
As a courier, you need to protect yourself, your vehicle, and your cargo. Hire and Reward and Goods in Transit insurance are both essential for working in the UK. Couriers operating in and out of Europe also need CMR insurance and an Operator Licence. Having these protects you from financial loss and ensures you comply with legal requirements.
For the best deals on courier insurance, get in touch with Business Choice Direct and get an exclusive rate for CX members.
In the world of shipping and logistics, smooth operations and secure deliveries are essential for success.
If you’re a UK courier and want to start taking loads to and from the EU and beyond, CMR insurance is key to safeguarding loads during transit, offering peace of mind and financial protection for both you and your customers.
In this guide, we’ll explain what CMR insurance is, its significance for UK couriers, how it’s different to Goods in Transit insurance, and how it’s usually priced.
So what is CMR insurance?
CMR, or International Carriage of Goods by Road insurance, is a type of coverage specifically designed to protect goods being transported across international borders by road.
It’s named after the CMR Convention, an international agreement that outlines the rights and responsibilities of parties involved in road transportation.
This insurance is essential to ensure that goods are covered against damage, loss, or theft during their journey, providing financial support when unfortunate incidents occur.
Why UK drivers need it
Thanks to Brexit, couriers and hauliers face new challenges when operating across borders. CMR insurance becomes a crucial tool to navigate these challenges smoothly.
When transporting goods to EU countries and beyond, having proper insurance coverage ensures compliance with international regulations and mitigates potential risks associated with the road transportation process.
Having CMR coverage also gives potential customers and shippers piece-of-mind when they’re looking for specialist courier services.
CMR vs. Goods in Transit insurance
While both CMR insurance and Goods in Transit insurance focus on protecting goods during transportation, they have distinct differences.
CMR insurance specifically covers international road transportation under the CMR Convention.
On the other hand, Goods in Transit insurance provides coverage for goods transported within a country’s borders, covering various modes of transportation such as road, rail, and air.
Therefore, CMR insurance is a subset of Goods in Transit insurance, tailored for international journeys by road.
How premiums are calculated
Several factors contribute to the calculation of CMR premiums:
- Types of Goods: The nature of the goods being transported influences the risk associated with the journey. Fragile or high-value items might incur higher premiums due to their susceptibility to damage or theft.
- Distance and Destination: The length of the journey and the destination country affect the insurance cost. Longer distances and countries with different risk profiles can impact the premium.
- Security Measures: The level of security measures in place, such as tracking systems, alarms, and secure packaging, can impact the insurance cost. Enhanced security measures often lead to reduced premiums.
- Transportation Equipment: The condition and quality of the vehicles used for transportation play a role in determining the insurance premium. Well-maintained vehicles with proper safety features might lead to lower premiums.
- Claims History: The claims history of the courier or haulier can influence the premium. A history of frequent claims might lead to higher premiums, while a clean record could result in lower costs.
How to get CMR insurance
For the best-in-class CMR and Goods-in-Transit insurance, look no further than our trusted partners, Business Choice Direct.
They specialise in tailoring coverage to suit your unique needs, ensuring you have the right protection when it matters most.
We’re proud to announce that the winner of the 2021 Commercial Lines Broker of the Year was none other than our very own partner, Business Choice Direct.
In July of this year, Business Choice Direct (BCD) was shortlisted for the 2021 National Insurance Awards. Judged rigorously by a panel that reviewed numerous other entries, BCD came out on top.
The significance of this award
The National Insurance Awards showcases the best in the industry and celebrates excellence in general provision and management. The awards took place at the Grosvenor House in London where BCD faced fierce competition, but ultimately conquered all and claimed the title of ‘Commercial Lines Broker of the year’.
Hard work and dedication pays off
The past twelve months have posed significant challenges for all businesses, BCD included. This award is a huge milestone for them and a reflection of their team’s hard work, dedication and excellence. Those of you who are customers of BCD must have already experienced this dedication first hand.
Our submission recognised how Business Choice Direct not only exceeded challenging business objectives but how our teams stepped up to the plate in very difficult times.
Tristan Scaife, Operations Director
BCD has set the bar high for other insurance contenders and is making a conscientious effort to face any challenges that lie ahead with tenacity.
The recognition from the National Insurance Awards also highlights that we are getting it right for our clients and customers. Here at BCD, we pride ourselves on the high level of service that we provide. We see our customers as real people, not just calls and emails and we know that every request for advice or assistance has come from somebody running a business or wanting to protect something important in their life. That is why we are constantly developing and growing; making sure our customers are getting the outcome they desire.
Through our knowledge and service levels, we have ensured that our customers benefit from getting the optimum products to meet their needs and this is reflected in the positive customer satisfaction review and feedback we have. This award is a testament to the hard work we put in day in day out and establishes us as leaders within the insurance industry. We know how frustrating the insurance market can be for our customers and we are all about simplifying business insurance.
Tristan Scaife, Operations Director
Congratulations to the BCD team! We couldn’t be more proud of them!
If you’re interested in what an award-winning insurance team can do for your courier business, get in touch today.
If you do courier work, you need insurance. Fact. Now stay with me folks, because while the subject may not be everyone’s idea of a good time, CX is very proud to announce a new partnership that’s set to benefit our members. And yes, it’s about insurance.
Business Choice Direct and Courier Exchange
Of all the aspects of running a successful courier work business, ensuring you have the correct insurances in place is one of the most important. You can land in a world of trouble if you don’t make sure you’re covered with the appropriate insurance policies. Meet Business Choice Direct.
Everyone loves an easy life and, on a topic as serious as this, we think it’s a case of letting the experts (BCD) do their job so you can get on with yours – which is getting the courier work done.
Our new partnership with BCD means that all our members will now be able to get access to their exclusive products at a very special price. In other words, we’ve negotiated some pretty good mates’ rates for you. You’re welcome!
The company not only price matches on any (like-for-like) van policy, they can also help you make sure that the cover you already have is fit for purpose and is exactly what you require to run your business. (You’d be surprised how many people unwittingly pay for things they don’t need and aren’t covered for things they do.) This includes insurance policies for things like:
- Liability
- Goods
- Vehicles
- Fleets
Take Advantage of the Perfect Partnership
How do you get on board? Well, firstly, you’ll need to be a member of the Exchange. Job done? Excellent.
Then you just have to get in touch with the good folks at BCD (via this link on our site).
The rest is up to them and they’ll do all the legwork to find you the best prices on the products you need. They guarantee to better any existing cover or offer an alternative quote, then price match and you’ll be instantly covered as soon as you sign up.
It couldn’t be easier and here at CX we couldn’t be prouder of our new partnership with BCD. Insurance really doesn’t have to be a dirty word…
Courier Exchange is the UK’s most trusted and fastest-growing managed freight exchange platform. Become a member and we’ll help your business run more efficiently and effectively, with access to valuable partnership programmes like this, the ability to buy and sell capacity in real-time and much more.
