What does courier insurance cover?
Courier insurance typically covers your vehicle for hire and reward use, the goods you’re delivering, and any liability if you injure someone or damage property while working.
It’s not a single policy—it’s a bundle of protections designed to match how you operate as a courier.
At its core, courier insurance allows you to legally use your vehicle to carry goods for payment. Standard car or van policies almost never include this—and using the wrong cover can leave you uninsured if something goes wrong.
But most couriers need more than just vehicle insurance. If the items you’re delivering are stolen or damaged, goods in transit insurance covers the cost. If you bump into someone’s gate or cause an injury while working, public liability insurance helps with legal claims. And if you employ anyone to help with deliveries, employers’ liability insurance is a legal requirement.
Some drivers also add breakdown cover, personal accident protection, or legal expenses cover to deal with the real-world issues that come with working full-time on the road.
In this guide, we’ll break down each of those cover types—what they include, what they don’t, and how to decide which ones you actually need.
What vehicle insurance types are available for couriers?
Couriers can choose from third party only (TPO), third party fire and theft (TPFT), or comprehensive vehicle insurance—but all policies must include ‘hire and reward’ use to be legally valid.
Without this, you’re not covered for deliveries, even if you have a standard van or car insurance policy.
Here’s how each type works in a courier context:
- Third Party Only (TPO): Covers damage or injury caused to others, but not your own vehicle. It’s the bare minimum legally required to drive, but not ideal for couriers who rely on their van to work.
- Third Party, Fire and Theft (TPFT): Adds protection if your vehicle is stolen or damaged by fire, but still doesn’t cover damage you cause to your own vehicle in an accident.
- Comprehensive Cover: The most complete level—protects you against damage to your vehicle as well as to others, plus theft and fire. Most full-time couriers opt for this, especially if their van is newer or essential to earning.
No matter which level you choose, it’s critical that the policy includes hire and reward usage. This is what permits you to legally carry goods for payment. Without it, even a comprehensive policy could leave you uninsured if you’re stopped or have an accident during a delivery.
Some platforms—like Amazon Flex or Just Eat—may require you to show proof of the correct insurance before allowing you to start work.
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Get QuotesWhat is goods in transit insurance and what does it cover?
Goods in transit insurance protects the items you’re delivering if they’re lost, stolen, or damaged while in your care.
It’s an essential policy for most professional couriers—especially those transporting fragile, valuable, or perishable goods.
Unlike vehicle insurance, which protects the van or car itself, goods in transit cover focuses entirely on the cargo. Whether you’re delivering parcels, food, documents, or electronics, you could be held responsible if something happens to them during transit.
Here’s what it typically covers:
- Theft from your vehicle while parked or in motion
- Damage from accidents, fire, or water ingress
- Loss due to vehicle breakdown or non-delivery
- Unattended vehicle theft (with conditions met, e.g. locked van, alarm activated)
Many delivery platforms and courier networks (like Courier Exchange) require couriers to have a minimum of £5,000 in cover—but policies can go much higher depending on what you’re transporting. If you’re regularly delivering high-value items (like mobile phones, tools, or medical samples), a higher limit is essential.
Some policies cover specific item types, while others are broader. Always check for exclusions—especially around temperature-sensitive goods or items left unattended without security features.
Goods in transit cover is usually an add-on to your courier insurance package, but it can also be bought separately if you’re using a flexible or app-based policy.
Do couriers need public liability insurance?
Couriers don’t legally need public liability insurance, but it’s strongly recommended—because it protects you if you accidentally injure someone or damage property while making a delivery.
Without it, you’d be personally liable for any claims made against you, even for minor incidents.
Imagine you’re delivering a package and accidentally knock over a customer’s motorcycle, damage their gate, or cause someone to trip over a parcel left on a path. If that person is injured or their property damaged, they could make a compensation claim—and public liability insurance is what covers those legal and financial consequences.
Here’s what it typically includes:
- Injury to members of the public caused during delivery
- Damage to third-party property (e.g. vehicles, fences, shop displays)
- Legal defence costs
- Compensation payouts or court-awarded damages
Most public liability policies for self-employed couriers start from around £4.74 per month for £1–2 million in cover. That may sound like a lot, but the average claim can exceed £13,000—so even one incident could put your livelihood at serious risk without protection in place.
Some delivery contracts, particularly with business clients or public-sector organisations, will require proof of public liability cover before awarding work. And if you’re working in high-footfall areas like shopping centres or offices, the exposure to risk increases even further.
In short: you don’t have to have it—but operating without it is like driving without a seatbelt. You might not crash today, but when you do, you’ll wish it was there.
Related Read: What Is Public Liability Insurance?
What is employers’ liability insurance for couriers?
Employers’ liability insurance covers compensation claims made by employees who are injured or become ill as a result of their work—and it’s a legal requirement in the UK if you employ anyone.
That includes part-time drivers, subcontractors, or even a mate helping out regularly with deliveries.
Most couriers operate as sole traders. But if you hire staff—even informally—you’re legally responsible for their welfare while they’re working for you. If they slip on a wet ramp while loading parcels, or develop a repetitive strain injury from sorting boxes, they could make a claim against you. That’s exactly what this policy is designed to cover.
Here’s what it typically includes:
- Compensation for employee injury or illness linked to their work
- Legal defence costs if you’re taken to court
- Payouts for lost income or long-term medical support
- Claims made by former employees for historical issues
The standard level of cover is £10 million, which sounds high—but it’s the benchmark most insurers and regulators require. It’s not just about financial protection—it’s about compliance. Failure to hold valid employers’ liability insurance can result in fines of up to £2,500 per day.
If you’re registered as a limited company and named as your own sole employee, you may still need cover in some cases, depending on how you’re paid and whether others help with deliveries. When in doubt, check with your insurer or broker.
It’s not a box you want to miss. The penalties are steep, and the consequences of getting it wrong could put your entire business at risk.
What other optional cover might couriers need?
Alongside vehicle, goods, and liability protection, couriers can add optional extras like breakdown cover, legal expenses insurance, and personal accident protection to strengthen their safety net.
These aren’t legally required, but they can reduce disruption, protect your income, and keep you working if things go wrong.
Here’s a breakdown of common add-ons:
Breakdown Cover
One of the most popular extras. If your van fails during deliveries, you could miss jobs, damage your platform rating, or lose income. Courier-specific breakdown policies often include roadside repair and recovery—even for loaded vehicles.
Legal Expenses Cover
Helps cover the cost of legal defence or pursuing claims related to your courier work. For example, if someone disputes a delivery or you’re wrongly accused of causing an accident, this policy helps cover solicitor fees and court costs.
Personal Accident Cover
If you’re injured on the job and unable to work, this policy can pay out a lump sum or weekly income replacement. Particularly useful for sole traders or gig workers who don’t have sick pay to fall back on.
Replacement Vehicle Cover
Some insurers offer a temporary courier-ready van if yours is stolen, written off, or in for repairs. This helps you avoid downtime and continue earning.
These extras are usually available as add-ons when you buy your courier insurance package—or through a broker who builds tailored cover for your delivery setup. If you’re full-time, covering long distances, or delivering high-volume goods, a few pounds extra per month could make all the difference when something goes wrong.
Final thoughts
Courier insurance isn’t one-size-fits-all. It’s a combination of covers that should reflect how you work, what you carry, and the risks you face while doing it. Whether you’re a sole trader dropping off parcels in a Ford Transit or a gig worker doing food deliveries on weekends, the right policy isn’t just legal protection—it’s business protection.
At minimum, you’ll need a vehicle policy that allows for hire and reward use. But beyond that, the question isn’t just “what’s included?”—it’s “what could go wrong?” Because that’s where the real value of courier insurance shows up.
If your van breaks down, you want help. If someone gets hurt, you want liability protection. If a parcel goes missing, you don’t want to be out of pocket. And if you’re off the road for a week after a fall, you’ll be glad you didn’t skip the personal accident cover.
Most importantly, don’t guess. The line between insured and underinsured is thin—and often expensive. Make sure your policy reflects the way you work, not just the bare minimum to stay legal.
Frequently Asked Questions (FAQs)
No. Courier insurance includes van cover but adds protection for hire and reward use—plus optional extras like goods in transit and public liability.
Not always. Public liability cover is often optional and must be added separately. Some courier packages include it, but many don’t by default.
Yes. These platforms require proof of courier insurance with hire and reward usage. Standard personal cover is not valid for this work.
Usually not. It’s typically an add-on or separate policy. If you’re transporting valuable items, you’ll likely need this cover explicitly.
No. Courier insurance typically doesn’t cover non-working passengers. For that, you’d need additional cover or a different policy type.
Yes. Some insurers offer one-day or short-term courier policies—useful for ad hoc work or trial shifts. Daily rates tend to be higher than annual.
It’s not standard, but many insurers offer it as an add-on. Make sure it’s tailored to loaded vehicles and commercial recovery.
Only if you have personal accident cover added. Standard courier policies protect your vehicle and liability, not your personal income or health.