Courier and Delivery Service Insurance

Courier Insurance is a specialised type of cover designed for individuals or businesses that transport goods in exchange for payment. Whether you’re delivering parcels or freight – full-time or part-time – standard car or van insurance won’t protect you once you’re operating commercially. That’s where courier insurance steps in.

Without proper courier insurance, you risk fines, penalty points or even having your vehicle seized – it’s essential for staying legal and protected on the road.

Courier Insurance offers a wide range of benefits that go beyond basic vehicle cover, helping delivery professionals stay protected, compliant and financially secure. Here’s a breakdown of the key advantages:

• Courier Insurance helps to ensure you meet legal requirements when transporting goods for payment, helping you avoid costly fines, penalty points or even having your vehicle seized due to missing Hire and Reward cover.
• Shields your business from costly claims, including vehicle damage, liability and legal expenses – especially important for small courier firms where just one unexpected incident could threaten the stability or future of the entire operation.
• Multi-vehicle Courier policies may offer cost savings in comparison to insuring vehicles separately.
• “Any Driver” cover on multi-vehicle Courier policies offers valuable flexibility, allowing businesses to easily rotate drivers to meet operational needs – whether covering staff absences, holidays or managing team changes.

Third Party Only (TPO)

• Legal minimum required to operate a vehicle on UK roads.
• Covers damage or injury caused to other people, vehicles or property (where legally liable).
• Does not cover your own vehicle or personal injuries.

Third Party, Fire & Theft (TPFT)

• Includes all the benefits of Third Party Only.
• Adds cover for your vehicle if it’s stolen or damaged by fire.

Comprehensive

• Includes everything in TPFT.
• Also covers damage to your own vehicle, even if you’re at fault.
• Can sometimes include extras like windscreen cover, personal accident and legal expenses, depending on the provider.

Whether you’re behind the wheel of a single delivery van or overseeing an entire fleet, Courier Insurance is designed to match the unique risks you face on the road. Here’s what’s typically covered:

Vehicle Damage

• Accidental damage (e.g. collisions, road incidents)
• Fire damage
• Theft or attempted theft
• Vandalism or malicious damage

Third-Party Liability

• Injury to other road users
• Damage to third-party property
• Legal costs arising from claims

Driver Protection

• Cover for named drivers or “Any Driver” if you’re running a fleet
• Personal accident cover (optional)
• Medical expenses (depending on policy)

Breakdown Assistance (Optional extra or standalone policy)

• Roadside recovery
• UK-only or UK/EU cover depending on your needs

Glass cover is typically included in comprehensive Courier Insurance policies. However, if you choose a lower level of protection – such as Third Party, Fire & Theft – this benefit is normally excluded.

While Courier Insurance protects your vehicle and liability as a driver, Goods in Transit Insurance specifically covers the items you’re transporting. Benefits include:

• Protection for lost, stolen or damaged goods while in transit
• Cover for accidental damage or mishandling
• Often includes subcontractor cover and EU territorial limits
• Can be tailored to the value of goods (e.g. £10K, £25K, £50K+)
• Some networks such as Amazon and DPD require Goods in Transit as part of the contract
• Build trust with clients and platforms

Courier insurance is essential for anyone transporting goods in exchange for payment. That includes:

• Self-employed delivery drivers: Those using cars, vans or motorbikes
• Fleet operators: Companies managing multiple vehicles and drivers
• Contracted couriers: Individuals working for platforms like Amazon, DPD or food delivery apps
• Time critical couriers: Businesses offering same-day or express delivery services

Courier Insurance typically allows you to transport a wide range of goods, but the exact scope depends on your policy and provider. Here’s a breakdown of what’s commonly covered (separate Goods in Transit Insurance will be required to cover the goods themselves):

• Parcels and packages: everyday deliveries for platforms like Amazon, DPD or Evri
• Retail goods: clothing, electronics, books, and household items
• Food and drink: including takeaway and grocery deliveries (some insurers treat this separately)
• Documents and office supplies: often part of same-day or express courier services

Some goods are considered high-risk or high-value and may need specialist insurance or policy extensions. These may be excluded from basic cover or capped at lower limits unless you upgrade your policy. Items that may require extra cover:

• Jewellery, watches or luxury goods
• Laptops, phones and electronics
• Medical supplies or pharmaceuticals
• Cash or financial instruments
• Artwork or antiques

Usually excluded from Courier policies:

• Hazardous materials (e.g. chemicals, explosives)
• Live animals
• Personal belongings not related to delivery work
• Goods transported without proper documentation or outside agreed terms

Courier insurance policies can be flexible when it comes to vehicle types, particularly when looking at Courier Fleet policies. Whether you’re a solo driver or managing a mixed fleet, you can typically insure a range of vehicles – as long as they’re used for hire and reward (i.e. delivering goods for payment). Here’s what you can usually include:

• Cars: Ideal for food delivery or small parcel drops
• Vans: The go-to for larger loads, from small transit vans to long-wheelbase models
• Motorbikes & scooters: Popular for fast urban deliveries, especially in food courier services
• Electric Vehicles (EVs): Increasingly supported, especially for eco-conscious courier businesses
• Bicycles (with specialist cover): Some insurers offer tailored policies for pedal-powered couriers

Cover options vary between insurers, but we can source policies from a single delivery vehicle to a full Courier Fleet. Since some products come with vehicle limits, it’s important to share your growth plans with your advisor – so we can match you with a policy that is scalable with your business.

If you’re operating several vehicles for delivery work, a Courier Fleet Insurance policy can be a practical and cost-effective way to manage your cover. Designed for businesses with three or more vehicles used for hire and reward, it streamlines your insurance into one manageable policy. Whether you’re just starting out with a few vans or overseeing a growing fleet, these policies can be set up to to fit your current needs and scale with your future expansion plans.

Courier Insurance policies can include EU cover, but it depends on your provider and the specific type of insurance you hold.

However, if you’re transporting goods across borders, especially post-Brexit, you might also need CMR Insurance. This is a special type of cover required under the CMR Convention, which applies to international road transport. It protects against loss, damage or theft of goods during cross-border delivery and is often required by freight forwarders and customs agents.

The majority of insurers will recognise a No Claims Bonus (NCB) from a previous Courier Insurance policy, provided the supporting documentation meets their validation requirements.

You cannot usually transfer NCB from a personal car insurance policy to a Courier Insurance policy. That’s because they’re considered different types of cover. However, some insurers may be able to offer an introductory discount based on claims free driving experience.

Most Courier Insurance policies are restricted to named drivers. That means only the individuals specifically listed on the policy are legally covered to drive the insured vehicle for courier work.

You can usually add:

• Employees or subcontractors (if you run a fleet)
• Family members (if they’re also doing courier work)
• Temporary drivers (some insurers allow short-term additions)

Each added driver must meet the insurer’s criteria, which could include:

• Meet the minimum age (typically 21 or 25)
• Hold a valid driving licence
• Have a clean driving record (certain motoring convictions are allowed but may affect your premium)
• Have relevant experience (some insurers ask for prior courier or commercial driving experience)

If you manage multiple vehicles, a Fleet Courier Insurance policy might offer “any driver” cover, but there may still be some eligibility criteria drivers have to meet.

To drive under a Courier Insurance policy in the UK, your drivers need the correct licence type based on the vehicle’s weight and use:

• Category B (up to 3.5 tonnes): Standard courier vans (e.g. Ford Transit). Drivers must be over 17.
• Category C1 (3.5 to 7.5 tonnes): Medium delivery vehicles. Drivers must be over 18 and will need a Driver CPC (Certificate of Professional Competence), medical exam and theory test. Drivers with “grandfather rights” (anyone who passed their test before 1997) may automatically be entitled to drive vehicles up to 7.5 tonnes without needing a C1 licence.
• Category C (over 7.5 tonnes): Large freight vehicles (not typical for courier policies. Drivers must be over 21 and will need a Driver CPC (Certificate of Professional Competence), medical exam and theory test.

Your insurer may accept younger or less experienced drivers on your Courier Insurance, but this is usually subject to referral and the following conditions may apply:

• You may be charged a higher premium
• You may be charged a higher excess in the event of a claim
• Cover may be restricted to certain vehicle types or delivery zones

Running a courier business means juggling more than just parcels – you’ve got vehicles, people and liabilities to protect. Beyond the legally required Hire & Reward Courier Motor Insurance, there may be other insurance products you require:

Add-Ons:

• Breakdown Cover
• Key Cover
• Excess Protection Cover
• Legal Expenses Cover

Other Cover Types for Couriers:

• Goods in Transit: protects against loss, theft or damage to the goods you carry
• Public Liability: protects against third party injury or property damage as a result of your work
• Employers’ Liability: protects you against employee claims (legally required for most UK businesses who employ staff)
• CMR Insurance: required for cross-border freight, this cover extends your Goods in Transit insurance to meet the requirements of the CMR Convention (International Carriage of Goods by Road)
• High Value Goods Cover: may be required if you handle high risk, expensive or sensitive items

The cost of courier insurance isn’t one-size-fits-all – it’s shaped by a mix of risk factors and business specifics, including:

Vehicle type & usage

• Vans vs. cars: Vans can sometimes be cheaper to insure than cars for courier work because insurers better understand their risk profile
• Vehicle age & value: Newer or high-performance vehicles may cost more to cover.
• Mileage: More miles = more risk = higher premiums.

Driver profile

• Age & experience: Younger or less experienced drivers typically face higher costs.
• Driving history: Past claims, accidents or penalty points will push your premium up.
• No Claims Bonus: A clean record can lead to significant discounts.

Location & delivery zones

• Urban vs. rural: Operating in high-traffic areas like London increases risk and cost.
• Delivery radius: Long-distance or cross-border deliveries may require additional cover.

Goods type

• High-value or fragile items: Insuring expensive or delicate goods raises premiums.

Level of cover

• Comprehensive vs. Third Party: Comprehensive policies cost more but offer better protection.
• Add-ons: Add-ons like breakdown cover and legal expenses will add to the total.

Business structure

• Self-employed vs. fleet: Fleet policies may offer bulk discounts but require more admin.
• Named vs. any driver: Any-driver policies are more flexible but usually pricier.

Want to cut costs on your courier insurance without cutting corners? Here are the most effective ways to save money:

Use a broker

A broker can help you compare price and cover levels from a range of insurers and may be able to access broker-only deals that you wouldn’t find on price comparison sites.

Ask about No Claims Bonus

If you’ve earned No Claims Bonus – whether through a previous courier policy or personal car insurance – check with your provider to see if it can be applied to your new courier policy to benefit from No Claims Discount.

Choose the right vehicle

Smaller vans often benefit from lower premiums. Avoid high performance or modified vehicles and accurately estimate your mileage.

Limit drivers & choose wisely

Named driver policies are typically more affordable than “Any Driver” cover, as insurers can more accurately assess risk when specific individuals are listed on the policy. To keep premiums manageable, avoid including young or inexperienced drivers unless essential and prioritise thorough driver recruitment and training processes.

Consider a Fleet

If you have multiple delivery vehicles, a fleet policy may unlock bulk discounts and simplify admin.

Anything that reduces your level or risk (and in turn, claims) can have a bearing on the premium. Some insurers offer discounts for:

• Telematics: A device that monitors driver behaviour
• Alarms and immobilisers
• Dash cams
• GPS tracking systems
• Secure overnight parking (e.g. locked compound)

In addition to potentially lowering your premium, this technology can enhance driver behaviour and provide vital evidence in the event of a claim – helping to speed up the process and minimise costs.

Courier Insurance is generally more expensive than Private Car Insurance and here’s why:

• Higher risk profile: Courier drivers typically operate under demanding conditions – extended hours, frequent stops, tight delivery schedules, urban traffic and high-mileage routes – all of which elevate accident risk. Insurers factor these heightened exposures into the cost of cover.
• Commercial use: Private Car Insurance is designed for personal use – commuting, social trips, etc. It doesn’t cover hire and reward, meaning you’re not insured if you’re delivering goods for payment.

We understand that managing cash flow is important, which is why we offer flexible ways to pay for your Courier Insurance policy. If you’d prefer not to pay the full amount in full, you can opt for a 50% deposit, with the remaining balance due 28 days after your policy begins – giving you time to spread the cost.

Alternatively, if monthly budgeting works better for your business, our third-party premium finance provider can offer convenient direct debit payments, allowing you to split the cost into manageable instalments (interest rates apply, please speak with our team for details).

The easiest way to get started is by calling our friendly commercial insurance advisors. They’ll walk you through the details our panel of insurers need to provide a quote and answer any questions you may have along the way.

Call Us:

• Head Office: 01227 285 540
• Ashford Branch: 01233 222 562

Prefer to start by email? No problem – just drop us a message at quotes@quotemetoday.co.uk and we’ll get back to you promptly.