It is now easier to book a courier online without having to pay beforehand. This is both a blessing and a curse for many courier companies. Zego, a startup company, partnered with RSA in order to develop an insurance tool that employs the pay-as-you-go principle. This will ensure that courier companies and parcel delivery firms that operate on part-time mode only will be able to secure their business.
According to the broker, the solution will make it possible for couriers with flexible working hours to pay only the amount that corresponds to the number of hours they are operating. This will save them money since they don’t have to purchase the standard annual policies.
Zego added that the technology they created complements well with the platforms utilized by their partners. The end goal is that flexible couriers will have automatic insurance based on the number of hours they have worked.
One the first hour has lapsed, the charge will shift to every minute. The minimum price will be 80p for an hour. The broker also explained that the policy represents the new partnership that formed between RSA and Zego and the aim of the two companies is to shift the usual way of distributing insurance.
Harry Franks is one of the founders of Zego and he said before that the broker was introduced into the market because of the unfulfilled gap for tools that can be used by individuals who are within the sharing economy. There is also insurances for bicycle, scooter, car and private hire. The startup was able to develop the product in less than 48 hours and it will be launched as a private tool.
Franks explained that the ecommerce industry is rapidly growing with courier services earning as much as £10 billion in the United Kingdom alone. It is not surprising that many find courier online while some prefer part-time courier services. The problem with part-time parcel delivery is that they must purchase the same insurance policies as the regular employees. This is why the introduction of the insurance tool from the partnership is a welcomed innovation.