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Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a delivery company.


This article will discuss the primary insurance coverage for delivery firms, general liability insurance, as well as additional policies that are appropriate for this industry.

Delivery Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Situations That a Delivery Company’s General Liability Insurance May Cover

Example 1: A prospective customer comes to your office to discuss a possible delivery contract with you. He walks to the bathroom but fails to notice a shift in the floor level and stumbles and falls. He has a fractured wrist. The expense of treating his injuries would most likely be covered by your general liability insurance coverage.

Example 2: One of your delivery drivers is pressed for time. He is travelling so swiftly through your warehouse that he misses a guest and collides with her, knocking her to the ground. She needs an ambulance and sues your company for her injuries. Your general liability insurance coverage will cover the expenses of your legal defence, including the cost of a settlement if the case is settled out of court.

Example 3: In your warehouse, a forklift driver is rushing to shift a pallet of products scheduled for delivery when he loses control of the forklift and lowers the pallet to the ground. The whole order of high-end computer gear is destroyed. The expense of replacing your customer’s property will most likely be covered by your general liability insurance coverage.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

For $1 million in general liability coverage, the typical delivery company in America costs between $450 and $1,500 each year.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Delivery Companies

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all delivery firms should have are as follows:

Insurance for Workers’ Compensation

Your state most likely requires you to have workers’ compensation insurance as an employer. Your coverage will cover the cost of medical treatment for work-related injuries experienced by your workers. It will also cover part of their lost salaries when they are unable to work due to job-related ailments.

Insurance for Commercial Vehicles

A business car insurance coverage should cover your delivery trucks. The business insurance policy you carry, like a personal auto insurance policy, will pay for the repair or replacement of a work vehicle involved in an accident caused by you or your workers. The insurance will also cover medical expenses for injuries experienced in the accident, as well as any damages you or your workers are responsible for as a result of the event.

Coverage Options for Some Delivery Companies

In addition to the insurance listed above, your delivery firm may need other forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Insurance for Businesses

If your firm is obliged to pay substantial damages, such as if you lose a major case, the limits of your general liability insurance coverage may be surpassed. A business umbrella insurance coverage is intended to take up where your general liability insurance ends off, allowing you to avoid paying the expenses out of pocket.

Insurance for Data Breach

Data breach insurance, often known as cyber attack insurance, is intended to safeguard your company in the event of a cyberattack. For example, if a cybercriminal compromises your customer information and one or more of your customers initiates legal action against your company as a result of the security breach, your data breach insurance will cover your legal costs—including the cost of paying settlements, if required.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.