Courier van insurance – sometimes referred to as ‘hire and reward’ insurance – is a specialist cover, which is usually put together as a package. You’ll need it if you’re paid to make regular deliveries like parcel deliveries, letters, or boxed items.

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Courier van insurance is different to haulers’ insurance, which covers LGV drivers making long trips that mostly involve just one or two deliveries.

 

Please note, that courier insurance won’t cover you for removals, house clearances, or for transporting high-risk or hazardous goods.

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Courier Insurance Optional Extras

Goods in Transit

Goods in transit insurance protects the goods you transport as a courier against damage or destruction, loss, theft, delayed delivery, and consequential losses for items not delivered correctly.

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Whilst a courier van insurance policy protects the driver and the vehicle, goods in transit cover the cargo on board (goods and products).

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Additionally, goods in transit cover often come with £10m of public liability insurance and £5m of employers’ liability insurance – handy protection against the risks you and any employees face while delivering goods.

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Typical items covered for couriers under a goods-in-transit policy include parcels, packages, newspapers, and letters.

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Cover for up to £25,000 per load is available, with individually listed items also covered up to £1,000. The driver’s personal effects can also be covered up to £200.

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Public Liability

Whilst in many instances your business motor insurance policy will cover damage or injury to third parties whilst using the vehicle, there are many instances where your business will bring you into contact with the public outside the everyday use of the vehicle.

 

For instance, whilst loading or unloading, making a delivery to premises and access by the public to your business premises.

In such circumstances, Public Liability cover will protect you against injury to persons or damage to property caused by you whilst carrying out your business activities.

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A Public Liability policy will protect you against the costs of compensation to be paid out as well as the legal expenses incurred during the claims process.

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Employers Liability

If you are unsure whether you are required to carry Employers’ Liability cover you should seek professional advice. Further information can be found at http://www.hse.gov.uk/pubns/hse40.pdf.

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If you are an employer, you are legally obliged to have employer liability insurance. You can be fined up to £2,500 for every day you do not have appropriate insurance.

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Employers’ liability insurance covers the cost of compensation and any associated legal fees.

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Is it required as a contractor?

Some of the larger networks such as DHL, TNT, and Parcelforce may require you to have this cover in place before you can commence work. You should seek advice on whether you need this cover with your employer.

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How much employer liability cover do I need?

Under the terms of the Employers’ Liability (Compulsory Insurance) Act 1969, you are required to have a minimum indemnity limit of £5million.