Courier Insurance

You may ask yourself if you need insurance when sending items through a courier company.

A courier company will charge you a set fee for delivery and it is often the case where this fee incorporates an insurance or compensation cost.

The usual compensation rates can be as high as £50 if your item has suffered damage or loss. You may need to use the small print or simply ask the courier company what the compensation is should the item go astray or become broken.

It is rare for courier firms to offer compensatory loss.

An example of this is a too hire company in London had sanctioned a courier firm to deliver two specialist power tools to a building site in Cornwall.

The power tools were to be used by two builders renovating a listed cottage building in Hale.

The London tool hire company handed over the two power tools on a Monday for next day delivery on Tuesday. The builders were informed to arrive on the Wednesday morning to begin work and were to use the power tools the courier firm had delivered on the Tuesday.

The problem however was that when the power tools arrived in Bristol holding depot on Monday night they were not loaded onto the Cornwall van for delivery on the Tuesday as expected. In fact they were eventually delivered on Wednesday afternoon.

The company who had ordered the power tools for use on Wednesday morning had to pay two builders' day's wages each for doing nothing.

The company attempted to get the errant courier company to pay the men's' wage from insurance. It was later discovered that compensatory loss is not offered as part of the standard insurance cover.

Courier Insurance

A small surcharge will allow a client to gain additional cover but like any insurance you need to check exactly what you are covered for.

Courier insurance does not usually cover much more than a standard £50.

If you want to increase this amount of insurance to say £500 then you could find it would only cost an extra £5 or £10 on your insurance premium.