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Deal With Risk Effectively Through Courier Insurance

All businesses carry some risks that are inherent to them and the courier industry is no exception.
If you are planning to set up a courier business, then you must be prepared to take on those risks and how you can deal with them such that your interests are not compromised.
That can be done with the help of courier insurance.
Insurance is of two types.
The first one which is a mandatory one and allows you to ply your vehicles for the business is the vehicle insurance policy.
This policy provides protection to the vehicles when being used for the business and is crucial considering that any breakdown, damage and subsequent inability to run these vehicles can impair your business and affect your customers pretty badly.
The second one is the concept of courier insurance specific to your business and is an optional one.
This would help you protect your business against claims lodged by customers towards damage to goods, delay in deliveries and so on.
Not having this insurance is not an advisable one as during the course of your business, there are many things that can go wrong.
These have the potential to hamper your business operations and cause losses to your customers which they would want to recover from you.
If you have to settle these claims out of your pocket, the impact on your business would be severe and considering the time, effort and focus that are necessary to get into legalities, you will soon lose credibility.
A carefully built up business can thus come crumbling down pretty quickly.
So how should you go about the task? Well, to start with, identify insurance service providers who can offer you the benefits of both policies under a single one so that you don't have to deal with a lot of documentation, can deal with a single point or company for claims and most importantly get the benefit of better rates.
Having different service providers for different policies would not help you in any fashion and only complicate issues.
You would also lose out on the negotiating front and would have to pay more by way of premium.
Coming to specifics, you would need a policy that takes care of damaged goods during carriage under the hire and reward category.
Since this would involve multiple pickups as well as drops, haulage insurance policy would not be sufficient for you.
You would need any one or all of the three -Third Party Only, Comprehensive or the Third Party Theft and Fire policies.
The recommendation is that you go for a comprehensive one despite its higher cost as it is important for you to be able to concentrate on your business and not get into legal hassles every now and then for certain missing aspects of the insurance.
Note that there would be 'excess' charge of £500, which can be negotiated upon and brought down and it does not matter whether you are the sole proprietor or running a partnership to get the required cover.


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