Does a Courier Driver need Cargo Insurance?

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Do I need Cargo Insurance and if yes, how much?

SCI

Cargo Insurance depends on your clients’ requirements and the type of cargo you are carrying. A minimum amount of Cargo Insurance would make your business more attractive to potential customers as it signifies that you are ready to be trusted to carry the products they require to be delivered. You would discuss this type of insurance with your vehicle insurance company.

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Dieimddo

DRIVVR

Commonly if you have a Box Truck - the courier company requirements may include that you have your own cargo insurance - example: $100,000 coverage, in case there is damage to the product (s) you are delivering..

Typical Auto Insurance Coverage: (THIS DOES NOT ALWAYS APPLY- but many driver ads are looking for this type of coverage) 100/300/50
Drivers with smaller vehicles: Car, Minivan, SUV, or Cargo Van are usually required to carry auto insurance amounts with $100,000 / $300,000 / $50,000 coverage, but cargo insurance is not often required from drivers of smaller than box trucks vehicles.

The first number ($100,000) is for Bodily Injury Coverage per person. That is the maximum amount your insurance policy will pay out per person for an AT FAULT accident - where the owner of the insurance policy caused the accident. Any costs over $100,000 are your responsibility

The second number ($300,000) is the maximum amount your policy will cover for bodily injury per accident for AT FAULT accidents. If there are multiple people injured, each person's medical costs are covered up to $100,000, but combined for all people injured in the accident - the total coverage is $300,000.

The third number ($50,000) is the coverage for property damage liability. The policy will pay up to $50,000 to another driver's vehicle or property.

Mike_n_NC

If you are a business it's best to have it, and not need it than to need it and not have it. Just recently had a client ask if we could cover 20k in cargo insurance? After we successfully completed multiple other deliveries, they call 3 times a week now.

DRIVVR

Typical Auto Insurance Coverage: (THIS DOES NOT ALWAYS APPLY- but many driver ads are looking for this type of coverage)
100/300/50
Drivers with smaller vehicles: Car, Minivan, SUV, or Cargo Van are usually required to carry auto insurance amounts with $100,000 / $300,000 / $50,000 coverage, but cargo insurance is not often required from drivers of smaller than box trucks vehicles.

The first number $100,000) is for Bodily Injury Coverage per pe(rson. That is the maximum amount your insurance policy will pay out per person for an AT FAULT accident - where the owner of the insurance policy caused the accident. Any costs over $100,000 are your responsibility

The second number ($300,000) is the maximum amount your policy will cover for bodily injury per accident for AT FAULT accidents. If there are multiple people injured, each person's medical costs are covered up to $100,000, but combined for all people injured in the accident - the total coverage is $300,000.

The third number ($50,000) is the coverage for property damage liability. The policy will pay up to $50,000 to another driver's vehicle or property.

PSchl

Whether it's "required" or not most contracts make YOU, the driver, responsible for the value of the cargo you are carrying - even if you may not be told the value. If cargo is stolen, lost, damaged, or destroyed at least some of the money to reimburse the shipper may come out of your pocket. You could see deductions made from your settlement checks and you would not have control over this. For this reason many delivery drivers get cargo insurance.

The good news is that cargo insurance is not nearly so expensive as other types of insurance - especially commercial auto insurance (if you even need that). The bad news is that many cargo insurance policies come with high deductibles (a deductible is the money you have to pay out before the insurance company begins to pay the rest). A lot of delivery cargo is low-value so insurance with a $500 or $1000 deductible doesn't help very much and many drivers struggle to pay the first $1000 out of their own funds. If you search, you can find cargo insurance with lower deductibles and CBDriver resources can help.

Most drivers with cargo vans or cars are fine with $25,000 or less in cargo insurance. Unless you are transporting valuable commodities you just can't easily fit much more value into a van (even high-toppers). Unfortunately, som carriers out there try to require the same higher requirements for a heavy truck on van and car drivers. That's not fair and many times a driver can get an exception by asking. If not then you have to decide if that's the kind of company you want to contract with.

Everyone is looking for good drivers so seek out companies that will treat you fairly and not force unnecessary extra expenses on you. Or they should pay you very well if they do!

FYI I worked 25+ years as an insurance broker for delivery companies. Best of luck!