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Couriers and delivery
Courier insurance is usually a package of hire and reward motor cover, goods in transit, public liability and, if you employ anyone, employers' liability. Each part answers a different risk, and the legal minimum motor cover does not protect the goods you carry.
Part of: Commercial vehicle insurance
In short
A courier needs motor insurance that names the right use, because the Road Traffic Act 1988 makes it an offence to use a vehicle without cover for that use. A private or commuting policy usually excludes paid deliveries, so most couriers need hire and reward cover. Compulsory motor cover does not have to protect goods carried for hire or reward, which is why goods in transit is bought separately. Public liability covers injury or damage to other people off the road, and employers' liability is compulsory for most employers, with a £5 million minimum.
Couriers range from a single driver with a car to a depot running vans for a parcel network, but the building blocks are broadly the same. Which ones you need depends on what you carry, who you work for and whether anyone works for you.
| Cover | What it usually responds to | Legal position |
|---|---|---|
| Hire and reward motor | Injury to people and damage to their property caused by your vehicle while it is used for paid deliveries | Third-party cover for the use is compulsory under the Road Traffic Act 1988 |
| Goods in transit | Loss of or damage to the goods you carry, depending on the wording | Not compulsory, but often required by the customer or network contract |
| Public liability | Injury or property damage to third parties away from the road, such as at a customer's premises or your depot | Not compulsory, but commonly a contract condition |
| Employers' liability | Claims by employees injured or made ill at work | Compulsory for most employers, minimum £5 million |
Some insurers sell these as a single courier package and others as separate policies. Either way, check that the limits and the descriptions of your business match what you actually do. Our commercial vehicle insurance guide covers vans more generally, our haulage insurance page covers heavier goods vehicles, and app-based drivers should read our guide to self-employed delivery driver insurance.
Section 143 of the Road Traffic Act 1988 says a person must not use a motor vehicle on a road or other public place unless a policy is in force in relation to the use of that vehicle by that person, as the Crown Prosecution Service guidance sets out. The word that matters is use. A policy that covers social, domestic and pleasure driving, or commuting, does not usually cover carrying goods for payment, and an insurer can decline a claim that falls outside the stated use.
The consequences are serious. GOV.UK says the police can issue a £300 fixed penalty and 6 penalty points for driving a vehicle you are not insured to drive, a court can impose an unlimited fine and disqualification, and the vehicle can be seized. Our guide to what hire and reward means covers the classes of use in more detail, and our hire and reward insurance page sets out the cover itself.
Compulsory motor cover is about third parties. Section 145(4) of the Road Traffic Act 1988 allows a motor policy to leave out liability for damage to goods carried for hire or reward, damage to property in the policyholder's custody or control, and any contractual liability. In practice, the parcels in the back of the van are rarely covered by the motor policy at all.
Goods in transit insurance fills that gap. Wordings vary: some cover only your legal liability to the owner, others cover the goods on a wider basis whatever the cause. Most have a limit per vehicle or per consignment, lists of excluded or restricted goods, and conditions about locking and attending the vehicle. Our short goods in transit definition explains the terms.
Public liability is for accidents that are not motor claims: a parcel dropped on a customer's foot, a trolley damaging a reception floor, a visitor tripping at your depot. Many networks and business customers ask for evidence of it before they give you work, so it is worth reading our note on when a contract requires public liability insurance.
HSE guidance on the Employers' Liability (Compulsory Insurance) Act 1969 says employers must be insured for at least £5 million and can be fined up to £2,500 for each day without suitable cover. It also says that calling someone self-employed does not settle the question: control over how and when they work, and who supplies the equipment, point towards employee status. A courier firm using drivers or van helpers it describes as self-employed should check this with its insurer. See our employers' liability guide.
GOV.UK guidance on driving a van says a standard car licence covers vans up to 3,500kg, and that driving a van for business for more than 4 hours a day brings in the GB domestic drivers' hours rules. Its update history notes that from 21 May 2022 a standard international operator licence is needed to carry goods for hire or reward in the EU, Iceland, Liechtenstein, Norway and Switzerland.
The goods vehicle operator licensing guide says you will usually need an operator licence for a goods vehicle over 3.5 tonnes gross plated weight used for hire or reward or in connection with a business, and for international hire or reward work in vehicles over 2.5 tonnes. Larger courier and haulage operations should also read our operator licence and haulage insurance guide. Insurers will usually ask about licences, vehicle weights and where you operate.
Illustrative. A two-van courier takes on a regular contract for a medical supplies firm. Its motor policy is rated for hire and reward, but its goods in transit limit is set for general parcels and its schedule lists the business as same-day courier only. A van is broken into overnight and temperature-controlled stock is lost.
The fix is usually simple and done in advance: tell the insurer what you carry, set limits by the highest value load and read the conditions. For multi-drop work, our multi-drop courier guide goes further.
Apex arranges courier and delivery cover, including goods in transit, for sole traders, multi-drop operators and small fleets. A broker reads each enquiry and comes back with options, and there is no fee for a quote. Cover is always subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus the vehicles and their weights, the drivers, what you carry, the highest value of a single load and any network or customer contract requirements.
Usually yes. The Road Traffic Act 1988 requires cover for the use of the vehicle, and paid deliveries are normally outside a social or commuting policy however few there are. Some insurers offer cover for occasional or part-time delivery work, but it has to be on the policy before you start.
Normally not. Section 145 of the Road Traffic Act 1988 allows motor policies to exclude damage to goods carried for hire or reward, and most do. Goods in transit insurance is the cover designed for the parcels, subject to its limits, conditions and excluded goods.
No. Public liability is not compulsory in UK law, but many parcel networks, depots and business customers make it a contract condition. It covers injury or property damage to third parties that is not a road accident, such as damage at a customer's premises.
Possibly. HSE guidance says employee status depends on the real working relationship, such as control over the work and who supplies equipment, not on the label or tax status. If your drivers could count as employees, the compulsory £5 million cover is likely to be needed.
GOV.UK guidance says an operator licence is usually needed for goods vehicles over 3.5 tonnes gross plated weight used for hire or reward or a business, and for international hire or reward work in vehicles over 2.5 tonnes. Check the guidance for your vehicles and routes.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
