Courier Business Decisions - To Bond or Not to Bond

No courier would ever want a valuable package to slip from his or her fingers and land on hard concrete with a cringe-worthy crack. The same can be said for putting down a package to open a door, turning around to sign something and then turning back to find the package missing.

Both cases will put the responsibility of reimbursing or replacing the item in question to the courier. There are, however, bond companies that can step in and cover the expenses for the lost or damaged goods. The question here is whether it is in your best interests to sign up for these bond companies or not.

How Do Bonding Companies Operate?

The whole process is started either by you contacting the bonding company, or the other way around where the bonding company contacts you with an offer for their services. If you are the one contacting the bonding company, it will first run a general background check on you. You will need to have a clean criminal record to prove that you have had no serious run-ins with the law. They will then check your driving history to see if you have been found at fault for causing a vehicular accident. Then they will run a credit check to see if your financial condition may encourage you to attempt to ‘game’ the system. Finally, they will run a medical check to determine if your physical condition will affect your performance.

If you are found eligible for bonding, the company will then figure out your monthly dues. Once the company covers you, they will then reimburse your clients should you lose or damage the goods that you were supposed to deliver.

When Should (or Shouldn’t) You Work With Bonding Companies?

These bonding companies are an excellent backup plan when you regularly deliver high-value goods to your clients. Examples include electronics, computers, pharmaceuticals, antiques and the like. Paying a monthly fee will always work in your favour if you deliver such high-value goods, as being covered will save you hundreds – even thousands – of pounds if you ever get into an accident or if someone robs you at gunpoint. There are, however, cases in which it simply impractical to work with courier bonding companies. This is especially true if you regularly deliver low-value items that cost less than a hundred pounds. You can simply draw up a contract with your clients wherein you will personally reimburse them for the declared value of their packages up to a certain amount. This is a great way to provide your clients a sense of security even without the protection of a bonding company. Such a model, however, will ensure that no client with high-value deliveries will ever contact you for a job.

To cut a long story short, working with a courier bonding company is highly recommended for those aiming to deliver high-value items. If you prefer to keep things simple though, you can reduce your overhead expenses and stick to delivering low-cost packages instead.

Norman Dulwich is a correspondent for Courier Exchange, the world's largest neutral trading hub for same day courier jobs in the express freight exchange industry. Over 2,500 transport exchange businesses are networked together through their website, trading courier jobs and capacity in a safe 'wholesale' environment.