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What Insurance Does a Courier Need?

What Insurance Does a Courier Need?

What Insurance Does a Courier Need?

Couriers provide an essential service of delivering packages, messages, and letters across the United States. Typical customers of courier service providers include lawyers, retail shops, e-commerce stores, individual customers, and government institutions.


Similar to other logistic companies, courier service providers face unique risks. Couriers have a contractual obligation to deliver packages safely without damage or missing items. Any unforeseen events like fire, vandalism, or theft during transit expose their business and reputation to risk.


With that in mind, a courier service provider should consider acquiring commercial car insurance to protect their business and investment. You can discuss your options more in-depth with our insurance professionals today. 


Here’s what you need to know about commercial car insurance.

Coverage of Commercial Car Insurance

Collision Damage

It’s an insurance plan that meets the cost of repair or replacement when your car is damaged by another vehicle or object. If you’ve leased your vehicle, the lender requires you to purchase collision damage; however, that’s under your discretion for a cash-purchased vehicle.


Collision damage doesn’t cover:

  • Medical bills
  • Damage to a third-party vehicle
  • Damage to a vehicle unrelated to driving, such as theft

Property Damage Liability

It meets the cost of repair or replacement to a third-party vehicle or property. It becomes applicable during an at-fault accident where you cause damage to another vehicle or property. Property damage coverage is a mandatory plan for auto insurance in California. 


Every state has a set limit of property damage and bodily injury coverage. In California, a driver is required to have at least $5,000 in property damage liability coverage. However, you can request an adjustment to fully cover your risk exposure.

Comprehensive Coverage

Comprehensive coverage covers damage to your vehicle caused by anything else apart from traffic and roll-over incidents. Typically, these include an array of random events beyond your control –  acts of god, riots, or extreme weather.


Comprehensive coverage caters to damage associated with:


  • Theft
  • Earthquakes
  • Floods, lightning, thunderstorms, hurricanes, and hail
  • Civil disobedience, or riot
  • Falling objects like tree branches

Bodily Injury Liability

If you’re involved in an at-fault accident, bodily injury coverage pays for the medical costs of people injured— excluding yourself. In addition, if a victim of the accident files a lawsuit against you, bodily injury liability covers the legal costs.


It also covers:

  • Funeral expenses
  • Loss of income
  • Pain and suffering

Uninsured Motorists

Uninsured motorist coverage protects you against damage and injuries when hit by an insured motorist. It also pays for a hit-and-run accident. All insurance companies are required by law to offer motorists uninsured motorist coverage; however, you can decline the offer in writing.

Speak to an Experienced Commercial Car Insurance Insurance Provider

Most businesses have an active threat of collapsing when faced with external risks. For instance, if a courier is compelled by courts to pay a large settlement, it could become insolvent. It’s therefore prudent to prepare for unforeseen risks by acquiring commercial car insurance.


At Panorama Insurance, we offer a responsive insurance service for courier services. Contact us online or call us at 818-781-6630 to request a quote.

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