Courier insurance explained: What you really need to stay covered

The courier and delivery industry has exploded in recent years, fueled by online shopping and the rise of same-day delivery. But with more miles on the road and tighter schedules to hit, the risks have never been greater. Whether you’re an independent driver or running a small fleet, standard vehicle insurance isn’t enough to keep you fully protected. That’s where Courier insurance comes in.

This article explains what Courier insurance covers, why it’s different from regular vehicle insurance, and what you really need to stay protected.

What is Courier insurance?

Courier insurance is a form of commercial vehicle cover, designed specifically for drivers who carry goods for hire or reward, meaning, you’re paid to deliver parcels, packages, or other items to multiple locations.

Unlike private or standard business vehicle insurance, Courier insurance:

• Covers multiple stops and high mileage typical of delivery work.
• Protects against increased accident risk from frequent driving and tight deadlines.
• Meets legal requirements for carrying goods on behalf of others.

If you use your personal van insurance for delivery work, you may find that any claim is refused because the vehicle is being used for a purpose that it wasn’t insured for.

The key types of cover couriers need

1. Fleet/Commercial Vehicle insurance

This protects your vehicle against damage, theft, or accidents while you’re using it for delivery work. You can choose:

• Third-party only – the minimum legal requirement.
• Third-party, fire and theft – adds protection against theft and fire damage.
• Comprehensive – covers damage to your own vehicle, even if the accident is your fault.

2. Goods-in-Transit insurance

This protects the items you’re delivering if they’re lost, damaged, or stolen while in your vehicle and in transit (including loading/un-loading). It is essential to have this insurance in place if you carry high-value goods or work with e-commerce contracts.

3. Public Liability insurance

If you are alleged to have caused injury or illness to a third party or loss/damage to their property, Public Liability cover pays for awards and all costs.

4. Employer’s Liability insurance

If you employ anyone for any period of time, not just drivers, this is a legal requirement. It provides indemnity for costs and awards for any formal claim if an employee is injured while working for you.

5. Additional options

• Breakdown cover – keeps you moving if your van fails on the job.
• Personal Accident cover – supports you financially if you’re injured and unable to work.
• Fleet insurance – if you run several vehicles, a single fleet policy is often cheaper and easier to manage, providing blanket cover, greater flexibility and wider entitlement to drive. Unsure whether you need Fleet insurance or individual vehicle cover? Read our article here.

Why standard van or vehicle insurance isn’t enough

Many new couriers assume their personal van insurance will do the job. Unfortunately, it won’t. Standard policies cover only social, domestic, and some commuting use, not paid delivery. If you’re involved in an accident while delivering parcels, your insurer could refuse to pay out, leaving you fully liable for costs.

We’re here to help

Whether you’re a self-employed courier with a single van or running a growing delivery fleet, our team of specialist insurance brokers can tailor a bespoke policy to your needs. Get in touch today to make sure you’re fully covered and back on the road with confidence.