Written by Michael Foote, Insurance Expert
What insurance do I need for delivering parcels
If you deliver parcels using your own vehicle, personal motor insurance won’t cover you. Whether you drive a car, van, or motorbike, courier work requires specialist cover that reflects the commercial nature of your activity.
Standard personal motor policies explicitly exclude business use of this kind. Delivering parcels without correct insurance can void your policy, result in prosecution, and leave claims unpaid.
Hire and reward motor insurance
Hire and reward cover is the minimum legal requirement for anyone delivering parcels for payment. It extends your motor insurance to cover carrying goods for commercial purposes, whether you’re self-employed, work for a logistics company, or drive for platforms like Amazon Flex, Evri, or DPD.
Without hire and reward, your insurer won’t cover any accident or damage occurring while you work—even if the accident itself was unrelated to your delivery activity.
Learn more in our article on why standard van cover won’t protect you when delivering packages.
Goods in transit insurance
Hire and reward covers your vehicle and third-party liability—not the parcels you carry. If goods are damaged, lost, or stolen in your care, goods in transit insurance covers your liability to the sender or recipient.
Many courier contracts require this cover, and some platforms won’t onboard drivers without proof. Claims arise from theft, damage during loading or unloading, or loss during delivery.
Policies typically offer £1,000 to £10,000 per load, with higher limits available for valuable consignments. Check contract terms carefully—you may be liable for the full value of lost or damaged goods if underinsured.
Read our guide on what is goods in transit insurance and do van drivers need it.
Public liability insurance
Public liability insurance protects you if a member of the public is injured or their property damaged as a result of your work—such as a customer tripping over a parcel you left, or damage caused while accessing a property.
While not always legally required, many platforms and contracts demand public liability cover with minimum limits of £1 million or £2 million. It’s especially important if you enter commercial or residential premises during deliveries.
Our article on do courier van drivers need public liability cover explains when this insurance becomes essential.
Employer’s liability insurance (if you hire drivers)
If you employ or subcontract other drivers, you’re legally required to hold employer’s liability insurance with minimum cover of £5 million. This protects you if an employee is injured or becomes ill as a result of working for you.
Sole traders and owner-drivers working alone don’t need this cover. However, if you expand or bring in help, you must arrange it before they start work.
Personal accident and income protection
These are optional but worth considering if you’re self-employed. Personal accident cover pays a lump sum or weekly benefit if you’re injured and unable to work. Income protection provides longer-term support if illness or injury prevents you from earning.
Courier work carries physical risk, from road accidents to manual handling injuries. Without statutory sick pay or employer support, time off work can quickly create financial difficulty.
What to check before buying
Before committing to any policy, confirm:
- Use class: Ensure the policy includes hire and reward or courier use. Some policies state “business use” but exclude delivery work.
- Goods in transit limits: Match cover limits to the value of parcels you typically carry. Underinsuring exposes you to significant financial loss.
- Excess levels: Check what you’ll pay when claiming. High excesses reduce premiums but increase out-of-pocket costs.
- Platform approval: If you work for a specific courier company or app, confirm your policy meets their minimum requirements. Some platforms require named coverage or specific endorsements.
- Multi-drop or single-drop: Some insurers differentiate between delivery models. Multi-drop work—numerous stops per shift—is often seen as higher risk.
- Geographical limits: Most UK policies cover Great Britain and Northern Ireland. If you deliver across borders or into the EU, check your policy extends appropriately.
- No claims discount protection: Courier drivers are on the road more than most. Protecting your no claims bonus helps manage future premium increases.
Additional considerations often missed
Many drivers overlook the importance of keeping proof of delivery records and photographic evidence. In disputes or claims, contemporaneous evidence can determine whether a claim succeeds or fails.
If you use your vehicle for both personal and courier work, ensure your policy covers both uses. Some insurers offer hybrid policies; others require separate arrangements. Mixing uses without declaring them can invalidate your cover entirely.
Drivers switching between platforms or taking ad hoc work should inform their insurer of any change in activity. Your risk profile shifts depending on goods carried, areas covered, and work volume.
Finally, consider breakdown cover that reflects your working pattern. Standard roadside assistance may not prioritise commercial drivers, and being stranded mid-route results in lost earnings and missed delivery windows.