In some cases, courier insurance policy wording or terms may not be clear or well understood. Hopefully, this guide will provide a better understanding of courier insurance policies.
JARGON BUSTER
Excess: The amount you are responsible for paying for, or the amount that is deducted from, each claim made on your insurance policy.
Exclusion: A clause in your policy that excludes the insurer’s legal responsibility under certain circumstances or for a specific type of loss.
Goods in transit: The goods you carry in your vehicle during daily business operations. Only goods you transport for clients will be covered by the courier policy, not your own.
Hire and Reward Insurance: Covers the transportation of passengers and goods for hire or reward.
TERMS YOU CAN EXPECT TO READ IN A COURIER POLICY
Even though courier insurance policies differ between insurers, there are a few things you can expect to see in your policy.
DEFINITIONS
In the document, there should be a section that defines and interprets keywords.
POLICY COVER
This section contains information about what the courier insurance policy covers or does not cover; this can include:
The proposer: The person whose name is on the policy.
- Third-party liability
- Fire and theft
- Accidental damage
- Windscreen and glass
- Lock replacement, including lost keys
- Goods in transit
- Emergency treatment
NO CLAIMS DISCOUNT/BONUS (NCD/NCB)
Your NCD/NCB section will usually explain the scales used by your insurer, how you earn NCD/NCB years, and how those years may be stepped back (decreased) in the event of a claim. NCB and NCD can be used in different ways by different companies.
GENERAL CONDITIONS
The general conditions section governs the whole contract and explains your responsibilities, general information, and procedures that must be followed in certain situations. Your cover could become invalid if you don’t comply with the terms and conditions, and any claims you make may be rejected. Your policy could be cancelled.
CANCELLATION
In case you decide to cancel your policy, you can learn how to do so and what the costs will be. In addition, the insurer will detail the cancellation terms if they decide to cancel the policy.
