Postal Letter

I have a 1999 Plymouth van and want to start a courier business. Is commercial insurance expensive?

I will be a one man operation until I can pick up some business. I am bonded and will provide notary service in addition to courier and delivery services. I will not be dealing in securities.

Public Comments

1. It will be more expensive than personal auto. As a new business, you may have difficulty getting any preferred companies to look at you and courier services are high risk even for commercial auto. Depending on what state you're in and your driving record, I'd look at 200-300 per month for a range of 100 miles from your garage address. A few years is business and cost could go down if you're a clean driver. Call the independent agent who handles your home & auto. Good luck
2. Yes, if you're NOT going to residential homes, the liability alone on it usually runs about $4,000 a year. If you go to residences, dropping off or picking up, it's closer to $6,000. Plus, as a public carrier, you're subject to PUC filings - and will be REQUIRED to have cargo coverage (there might be a few exceptions in some states that I don't know about). The cargo policy will start at $1,000 including your PUC filing. All this, assuming you're working in under a 25 mile radius, and not crossing a state line. You can't do this on a private passenger policy, as it's excluded under every pp form I've ever seen.