That’s interesting Nigel. I thought your insurance covered you for goods under the control of subcontractors as well? I’ve not got access to my records at the moment but I’m sure the lowest rate I’ve ever been offered was about 0.6% of turnover for £20K cover. Are you sure you actually ARE covered for goods in the care of subcontractors and it’s not just (worthless) contingent cover?

Posted under Insurance for Couriers

Posted by Alec at 2:08 pm, August 2, 2007

3 Comments so far

  1. Alec added on  August 2nd, 2007 at 15:06

    You have to do that for contingent cover as well Nigel, it’s charged at a much lower rate than the cover for your own vehicles/drivers because it doesn’t really cover you for anything. The subcontractors are still liable for any loss and you’re meant to check their GIT and have them indemnify you against loss. You can only claim against it if their own insurers won’t pay for some reason (or they’ve cancelled the insurance) and the subcontractor can’t pay.

    There’s normally a calculation in your policy documents showing the percentage applied to ‘own vehicle’ turnover and the percentage applied to subcontractor turnover. If the percentage applied to the subcontractor turnover is lower than the percentage applied to the ‘own vehicle’ turnover then you’ve almost certainly only got contingent cover. If you were fully covered for goods in the hands of subcontractors the percentage applied to the subcontractor turnover should be higher than the ‘own vehicle’ percentage to account for the higher risk.

    I used to have a very hard time getting GIT cover for my subcontractors at all and had to pay a premium rate to get it. I can’t remember the exact figures (it was years ago) but I think it was around £4-5K for £15K cover on a £500K turnover, without any claims.

  2. Alec added on  August 3rd, 2007 at 12:13

    OK, that’s the contingent cover I was talking about. It still seems quite a good deal though, unless your turnover is much lower than I’d imagined.

  3. Alec added on  August 3rd, 2007 at 12:41

    Whatever I say now about your business dealings you’ll probably think I’m having a pop at you. So I won’t say anything else.

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