I'm starting a courier/delivery business. Do I need to get insurance or be bonded before soliciting business?

Question

Starting a courier/delivery business. Will be most specific to pharmaceutical and parts companies.

Answer 1

The only way you would know if you “need” to be insured and bonded would be to check with your state government department that oversee businesses. They determine the requirements for licensing. Some industries require a bond to be submitted with their license application. An example is that most mortgage brokers need to submit a bond with their initial license application submission and a with their annual renewals. This type of bond ensures they conform with the laws and regulations of that state related to the statutes of that industry. This type of bond is considered a license bond.

Check with an insurance agent to see if bailees insurance is what you need. Bailees Insurance is if your business involves keeping customers items, this can cover loss to those items while they are in your possession.

If you hire people you might want to consider obtaining employee dishonesty coverage. This covers you, the owner, in case one of your employees seals from you. This could be added to you business owner’s policy as a rider. Or it can be written as a seperate Employee Dishonest Bond.

Answer 2

1

Answer 3

You need to work for a number of courier companies before you even start thinking about this biz. Your start up costs are outstanding. Advertisements Licenses Insurances on vehicles & on you, Bonding, Insurance on freight no matter what it is . Criminal background checks Dmv checks

Answer 4

You might want to do some basic market research first. Find out if there is a need for your type of service.

Interview prospective Clients - auto parts, pharmacies, lawyers/realestate offices.

If you can pre-determine it will be profitable for you (Revenue exceeding Your Costs), go to Step 2 and get insurance etc... as prescribed by your Legal Advisor.

Good Fortune to You.

Answer 5

It depends on what you want to do. Brokers act for the client and advise them on what kind of insurance they need. I would expect that there is a certain amount of training required to fill this role. On the other hand, agents of insurers (who are not underwriters themselves) are basically just a sales channel to push product without requiring any particular expertise except an understanding of the product they are selling. You should also check what laws may apply to regulate these activities. In Australia, we have quite extensive requirements around holding licences or being authorised by someone who holds a licence, and also around the management of conflicts, disclosure of remuneration, requisite training, documents required by law to be given, trust money etc. If you just jump in you may find later that you are in breach of relevant laws in your jurisdiction. In Australia, at least, penalties can be quite severe, including jail time, hefty fines, and a lifetime ban from engaging in financial services. It is worth checking this angle out to a) avoid any penalties and b) to see what your initial expense may be in complying with any regulatory requirements.

Answer 6

I only know about auto insurance. Your personal auto policy won't cover this. Call an independent agent to find out about a commercial auto policy - they should also help you with the business insurance.

Answer 7

Of course you do. Why would a business trust expensive things to someone just because they were cute?

Answer 8

stay smart and get bonded so that your clients know your real and honest, as well get ins.to protect yourself. good luck