Coverage Basics

What insurance do couriers need?

Online shopping is now more popular than ever. People no longer need to run to a bunch of stores when they can simply order things in pajamas at their own convenience. There are way more couriers now thanks to online retailers. And that’s why the need for courier insurance has been higher than ever.

But just because this job is popular doesn’t mean it comes without risk. Light truck drivers face liabilities daily–from a simple sprain from lifting goods to a fatal accident. As if traffic jams and tight delivery schedules weren’t enough to worry about.

Because of these risks, having a good trucking insurance plan is crucial to a courier business safety net.

Whether you contract with FedEx, Amazon, the USPS, or anyone in between, your commercial insurance agent will help you get the right insurance. And you are in the right place!

Courier Insurance Requirements

Insurance for courier businesses consists of a bundle of policies made for delivery drivers and services. Maybe you handle larger items like furniture from Wayfair or large TVs from Best Buy. Or you juggle several smaller packages from Amazon each day. You might even be a courier who is responsible for delivering very important documents. In any event, you’ll need a tailored insurance plan. And an expert can help with that.

Three policies that can help all parcel delivery businesses (particularly owner operators) are workers’ comp, general liability, and truck insurance. Workers’ comp is good because parcel delivery is so physical. General liability is important because you need protection whenever you interact with the public. Commercial auto is necessary because you operate a vehicle on the job.

Courier Workers’ Comp

Workers’ comp covers you and/or your employees in the event of an injury on the job. This is why having the right coverage should you get hurt while on the clock can be so important.

Workers’ comp claims examples:

  • Muscle injury due to repetitive motion
  • Broken bones from slips, trips, and falls
    Dog bites
  • Back strain from lifting heavy things

If you get injured while working without workers’ comp, you may be expected to cover medical expenses yourself. But workers’ comp will foot the bill if you need to take a trip to the doc’s, or even if you require a hospital visit.

If you’re hurt to the point of requiring time off work, you’re probably losing out on potential income. But workers’ comp insurance can compensate you for lost wages during that time.

Looking to save money on your workers’ comp policy? If you are an owner with no employees, you may be eligible for a minimum premium workers’ comp policy, which is also known as a ghost policy. Purchasing a ghost policy is the most affordable way for couriers to get a Certificate of Insurance.

The reason that ghost policies are so affordable is because they exclude the owner from coverage. But we have a unique product, Solo X, that includes a bonus accident policy for couriers. The accident policy provides 24-hour accident coverage on or off the job, so you can avoid many medical costs with this added protection.

Courier Liability Insurance

General liability insurance is necessary for almost all business owners, but it’s especially important for parcel delivery drivers. This coverage protects you (and your business) from financial losses involving third-party bodily injury and property damage claims.

No one knows what life will bring. That’s what makes a general liability insurance policy like this so important for a professional driver. It will cover many of the things that can go wrong when you work for yourself. It may not seem fair, but you can be held liable for your actions, even if it’s an accident. Not sure what could possibly go wrong?

General liability claims examples:

  • You’re carrying a package and bump into someone, knocking them over causing them to sprain their wrist. Your policy will pay for the medical bills.
  • You’re in a rush and throw something on a customers’ front porch and break their storm door. General liability will pay for replacement and repair costs.

Courier Auto Insurance

The odds are you rely on your vehicle to get you from point A to point B. And spending the day on the road involves much more risk than sitting at a desk in an office job. That’s why you need to consider business auto coverage.

Commercial auto insurance, or courier auto insurance, covers your van or truck while you’re working. If you get in an accident while making deliveries or running a work errand without auto insurance, you will personally be held liable for the damages. To make matters worse, you won’t be able to rely on your personal auto insurance in a situation like this. To be covered for an accident that happens while working, you must have commercial auto, or truck insurance.

Business auto claims examples:

  • Auto Property Claim: You’re backing into a parking spot and hit a parked car. Your policy will pay for the replacement and/or repair costs.
  • Business Auto Liability Claim: You’re backing into a bay to load your truck. The person guiding you stops to check their phone, but doesn’t tell you to stop backing up. Unfortunately, you run over their foot, breaking a few bones. Your policy will pay for the hospital bills.

Courier Insurance Costs

Liability Insurance Cost

Many courier businesses in America spend somewhere between $475-$1,600 per year for a general liability policy with $1 million dollar liability limits.

Courier Workers’ Comp Cost

How much does workers’ comp cost a courier business? Simply put, it depends on things like your state, profession, and payroll.

  • Where You Live: Because states have their own rules and regulations, prices vary by location. For example: One state mandates that you include yourself in coverage, which will increase the price of your policy.
  • Your profession: This plays a big part in the price. It’s all about risk. The more risk you face on the job, the higher your rate is.
  • Your Payroll: Payroll also dictates the price of your workers’ comp. The more employees you have, the higher your payroll. The higher your payroll, the greater your insurance premium will be.
  • Your Experience Mod: This works like a marker of your loss history. If you haven’t had claims in the past, your “mod” should be around a 1.0. If you’ve had a bunch of claims, your mod will be higher. You do not want a high mod, because it’s multiplied against the classification rate and the payroll (divided by 100). So if your mod is a 2.0, the cost of your workers’ comp will be double.

Finally, there’s the expense constant. This covers the admin fees and tends to cost around $200.

Learn more about the cost of business insurance.

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