Insuring Your Deliveries
Neil Bromage has run his own small business and is a freelance business writer working on a range of newspapers including The Times, Sunday Times, Telegraph and Financial Mail on Sunday. This book is based on a wide range of columns and Q&As written and answered by Neil for Business Link over a number of years. He is based near Preston, Lancs.
Ensuring adequate cover against damage or loss of goods in transit has saved many firms considerable sums of money and possible damage to their business. Put simply, the products you supply to your customers are, more often than not, your responsibility until the customer takes delivery.
A goods-in-transit policy can protect you from theft, loss or damage caused by accidents during transit and in some cases the consequences of any resulting delay. As with other forms of insurance, you will need to agree on the value of the goods. If the goods are new then this shouldn’t be too much of a problem.
You should check the type of cover being offered. New for old is obviously the better option but it can be expensive and you must ensure that you value the goods at their replacement rather than actual value.
Some policies will offer special features such as legal expenses, cover for possessions in your vehicle, food spoilage in freezers, garage cover, outbuildings cover – but if you want to keep premiums to a minimum these can be left off. You could also offer to increase the amount of excess on the policy, as this will often reduce the premium paid.
As with all insurance the level of risk will be the determining factor in the amount of premium you are asked to pay. Remember that it’s important that you give full disclosure of all facts and circumstances which might affect the policy, as failure to do so could invalidate it at a later date. If, for instance your company has a record of regularly losing goods, then you are likely to find the premiums more costly.
In order to get the best possible quotes work out the value of the goods before shopping around and examine any limitations and upper limit payouts before accepting the insurance.
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