Low cost insurance is offered by many different insurance companies. However, low cost does not always mean that your van courier service will be adequately or legally covered. Courier vans driving on public roads in the UK have to be covered by appropriate van courier insurance; this usually means it has to include Goods In Transit cover.

There are various different insurance options to cover all types of courier vehicles and businesses. Each insurance company has its own terms, conditions and criteria when it comes to courier insurance, as such it is best to speak with several insurers before committing to a courier insurance policy.

By restricting the transportation of dangerous goods to one vehicle means that the vehicle can be insured appropriately - While the remainder of the fleet can be insured at a lower premium. If this type of scenario applies to your business it is advisable to speak with the courier van insurance company to discuss the options available.

A further option of having each consignment is also available from many insurance companies. The cover can be short term to provide insurance cover for the duration which the consignment is onboard. Check with the insurers to see whether they offer this option.

If your courier service includes carrying goods for reward or payment you will need to have Goods in Transit included in the policy. Goods in Transit provides cover for the goods you will be carrying, however there are restrictions and limits on the value of the goods. Dangerous goods such as flammable liquids are considered to be a higher risk and will therefore cost more to insure. Collecting or delivering to places such as oil refineries is also considered to be a greater risk; this will also incur higher premiums.

Goods In Transit insurance is available for goods which you are carrying for someone else and receiving payment or reward or if you carry your own goods which need to be insured. Many customers will require you to have suitable Goods In Transit insurance and may refuse to you use your courier services unless this is in place.

Many customers will also require you to have appropriate Public Liability insurance as well as Goods In Transit. There are different levels of each type of additional insurance, therefore it is advisable to speak with the insurers who will arrange for these to be included in the policy.

Failure to do so may make your insurance invalid or may mean that should you need to make a claim goods which are considered ‘target goods’, those which are a greater risk of being stolen such as electrical goods and computer parts, you will only receive 50% of their value.