Delivery service businesses are always popular, regardless of the location. You might provide large delivery services, like dropping off packages and various types of cargo, or have a community delivery business, providing deliveries of groceries or medical supplies. Either way, you should be aware of your risks. With a delivery business your top risks include vehicle accidents during deliveries and vehicles breaking down. These and other risks you are exposed to can be covered properly with delivery service business insurance.
Types of Delivery Service Business
Choose from these different types of delivery services business insurance policies, each of which covers a specific set of risks:
One of the first and foremost policies you will need for your delivery business is general liability insurance. It includes premises liability, completed operations, and products liability. This types of insurance is valuable in many situations. For example, if a customer who is visiting your premises trips over a dolly in the front entrance, their medical costs are covered by premises liability. It also includes coverage for the delivery services you provide, and any special products that you sell.
You require the use of a vehicle, or fleet of vehicles, every single day when making deliveries. Damage to a vehicle or bodily injury from an accident is a huge risk with a delivery business. Business auto insurance is a commercial policy that covers all types of incidents with your vehicle, from getting into a collision to having packages stolen when making a stop. Commercial auto insurance is a vital insurance policy for delivery service businesses.
Delivery Service Business Owner’s Policy (BOP)
To simplify your insurance coverage, you can opt for a package policy that includes multiple coverages, such as a business owner’s policy (BOP). The BOP lets you choose exactly what is covered based on what you think your biggest risks are, such as dishonest employees, electronic data, business income and expense, or buildings and contents. A single event could require the need for multiple areas of coverage, which is what you get with a BOP.
You may do most of your business delivering items, but what if you have items stored in your warehouse or back room before deliveries, and there is a natural disaster? It can cause damage to those items, as well as the building itself. Protect this risk with a business property insurance policy. It can pay for repairs and replace items that were damaged.
Delivery Service Equipment Breakdown Insurance
If one of your delivery trucks breaks down, you need to have it repaired as soon as possible. Before you do so, you might be dealing with lack of business or slow deliveries with your other vehicles. Equipment breakdown insurance helps to cover these risks by helping you get the vehicle repaired in a more timely manner, and is therefore, a core delivery service business insurance policy to obtain.
Delivery Service Cyber Liability Insurance
When it comes to crimes, many people don’t think they will be a victim of cyber crimes, but it is a definite risk. If someone is visiting your website to inquire about services, and a hacker is in the system causing a virus for all visitors, they could sue you for damage done to their computer. In this case, cyber liability insurance covers the legal and financial costs.
Delivery Service Employee Dishonesty Coverage
There are many crimes that can be committed, and sadly, employee crimes are one of them. You might have an accountant who embezzles money, a driver that steals packages and claims they were delivered, or a warehouse employee breaking into your building in the middle of the night to take supplies. The employee dishonesty coverage policy covers losses in all these situations.
If you have an employee working in your warehouse that throws out their back when loading packages onto the delivery truck, it could mean high medical costs and recovery time. The workers’ compensation policy covers all medical costs, recovery costs, and missing income while they are out of commission.
Delivery Service Crime Insurance
A crime insurance policy covers all types of crimes, including those committed by customers, robbers, and even your employees. If your building is vandalized in the middle of the night, or if packages are stolen during a robbery, the losses and damage are covered by crime insurance.
A commercial umbrella policy helps to fill the gap between what other policies cover and what you owe for losses or damages. If you experience a fire in your warehouse that destroys countless packages, your business property policy might not cover the entire cost of what you owe for replacing items. The umbrella policy then steps in to fill the gap.
Running a delivery service business has the potential to be a long-running and successful business. Don’t put it at risk by failing to have adequate delivery service business insurance.