Wednesday, May 04, 2005

Courier Insurance

This is a much neglected subject when choosing a courier service. Generally because many delivery companies do not carry any insurance at all. So, they don't like to talk about it. If you use a courier company that does not have sufficient insuance you put yourself and your company at risk.

Most courier companies use independent contractors. This means they are not employees of that company. So, if a driver causes an accident that includes a fatal injury the following scenario will occur:
1. The victim's insurance company tries to sue the driver. But, they can not collect from them because the driver generally only carries the state mandated minimum insurance.
2. Then the insurance company tries to sue the courier company. But, they do not carry insurance.
3. Finally, the insurance company sues you and your company.

If you have ever been involved in a lawsuit or a large insurance claim, you know that this is not something you want to be involved with.

In addition to this scenario, there are a number of problems that can happen:
1. Lost deliveries
2. Damaged items
3. Stolen items
4. Missed payoffs or bank deposits that result in late fees or interest payments

In short, make sure that you and your company are protected!!!

Here are some Insurance Companies

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