The courier market is vastly expanding and there is not just a demand for one stop deliveries between big companies anymore. There are a vast range of courier and courier insurance companies to meet the growing diverse market demands.
There are two main types of businesses in this market and these are the haulage businesses and the courier businesses. A haulage business tends to be when a vehicle makes one long journey say from Scotland to London and drops off one large item or a load and perhaps picks up another on the way back, haulage is more common for big businesses and is much more expensive. The value of a haul could affect goods in transit insurance online quotes when looking to insure on a haulage basis. Courier businesses now tend to be multi-drop and this is the second type of business. This means they may be assigned a route and potentially deliver hundreds of packages within the same day. This is more common for things like online shopping and members of the public selling from their homes and the delivery cost tends to only be a few pounds per item.
Couriers operate as big companies, many of which you will know including DHL, TNT, and FedEx etc. These larger companies will require courier business insurance and will insure their vehicles under fleet insurance to save thousands of individual vehicle policies. These larger companies sometimes have thousands of vehicles and their client base is vast.
However there are now many single, freelance vehicles for lifestyle couriers to make some extra money and they only require single courier driver insurance. These single drivers and larger companies such as Yodel will now make multiple drop offs to lots of clients for things such as online shopping orders within the same day or next day delivery. With so many people buying and selling online these multiple drop offs to multiple client journeys are becoming increasingly popular and these mean smaller but more frequent payments. This system operates through courier exchange and is only really a recent phenomenon with more and more people doing it out of hours to make extra cash. This business model is simple as all you need to start up is a vehicle and courier insurance for cars or courier insurance for vans depending on your vehicle.
There is such a diverse range of goods that now need delivering and insurance for couriers with speciality goods can be more expensive making their services more costly. Specialist goods can include electrical equipment, hazardous material, plant material, livestock, animals and even human remains or organs. However the more commonly transported goods include parcels, packages, food, furniture, and newspapers.
Newspaper couriering is a great client base for insurance brokers because this provides repeat business, often on a daily or weekly basis. Newspaper companies will require efficient couriers as their turnaround from writing the articles to them being delivered to people’s doors sometimes needs to be less than one day.
There is also a Just-In-Time inventory method that many companies now use. They have on-board couriers who are individuals prepared to travel at little notice anywhere in the world. This is a very expensive strategy for couriering but when the cost of not having the goods delivered in a short time frame is extremely high then many companies are prepared to pay this. There are many negative consequences of not receiving a delivery on time that can have awful knock on effects for many people, which can be very expensive. For example this could bring a production or assembly line to a complete stop, result in loss of sales from missing deadlines and this method is even used in life threatening cases such as organ transplants.
With this vastly growing market for couriers, courier insurance uk is growing to adhere to this demand.