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5 Things Couriers Need to Know About Goods in Transit Insurance

The earliest form of e-commerce, which enabled businesses to transact with customers online, was invented by Michael Aldrich in 1979. Even though individuals have been shopping online for decades, there is no denying how much the e-commerce industry has grown over the last few years. In fact, almost nine million Australians made an online purchase in 2020. 

With an online shopping industry worth more than $47 billion, there is no better time to run a courier business in Australia than today. But is your courier business protected from common industry risks such as vehicle damage and theft of goods? Have you thought about the measures you can take to ensure your company will be able to recover from accidental losses? If you’re considering getting Goods in Transit insurance, here are five things you need to know about this risk management solution:

1. What Goods in Transit insurance policies usually include

Goods in Transit insurance may cover losses in case the goods your business is transporting are damaged, stolen, or lost in the process. It can help you recover financially in the event that a collision, explosion, earthquake, or fire damages the items you are delivering. There are also policies that protect couriers from riots and strikes, and the option to include cleanup and debris removal costs along with fire extinguisher charges is available.

2. What Goods in Transit insurance does not cover

Unfortunately, couriers face risks unrelated to natural disturbances, and these are usually not included in a Goods in Transit insurance policy. Losses resulting from vehicle overload, mechanical failure, and goods confiscation by customs are not covered. Goods in transit insurance may not protect your business from the theft of an unattended vehicle.

3. How much does Goods in Transit insurance costs?

There are several factors that can affect your Goods in Transit insurance premium. Your insurance broker will furnish policies according to the transportation method you use, the distance your goods need to travel, and the kind of items you are transporting (whether commercial or household). There are lots of variables to determine the cost of Goods in transit insurance. 

4. What to consider when getting Goods in Transit insurance

Are you engaged in the purchase and selling of goods? If so, how likely is it that the things will need to be transported between locations? Do you have any say in who operates the vehicles that ship the products you buy and sell and are they qualified and experienced enough? Are the routes utilised to carry the goods you buy and sell heavily congested or do they have risky interchanges? These are some questions you can ask yourself before getting this type of protection plan for your business.

5. What happens if you overinsure or underinsure

While overinsuring may result in paying higher premiums, it ensures that your courier business is protected against all the covered perils. Meanwhile, if you are underinsured, you can end up shouldering financial losses your company might not be prepared for.

Because courier businesses face many risks, you can supplement your Goods in Transit insurance policies with other plans such as Courier Van insurance and Public Liability insurance. Reach out to an insurance broker to know more about this. Find one on Advisr today.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

ADVISR, ABN 17 613 588 266

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