Courier Insurance Calculator

What insurance does a courier need?

Courier cover, like tradesman cover, is a bundle rather than a single policy – and the biggest mistake is assuming your normal car or van insurance already covers deliveries. It does not. This tool asks four quick questions and shows the three covers that apply to you, which one is a legal requirement, and how big your goods-in-transit sum insured should be. It is built for UK self-employed couriers – multi-drop parcel drivers, same-day couriers, app food-delivery riders and small haulage operators – who want to know exactly what to ask an insurer for. It does not quote a price; it sizes the cover.

The three covers, in plain terms

• Hire & reward motor insurance – the legal must. Carrying goods or people for payment is “hire and reward” use, which standard and even ordinary business-use policies exclude. Without it you are driving uninsured, which is a criminal offence and can lead to your vehicle being seized.
• Goods in transit (GIT) – covers the parcels you carry against loss, theft or damage. You pick a sum insured for the maximum value on board at once, and watch the separate single-item limit.
• Public liability – covers injury or property damage you cause while delivering, such as knocking something over at a customer’s door. It is not part of motor or GIT cover, so add it separately – usually £1m to £5m.

Worked example

A self-employed van courier runs a multi-drop parcel round and can have up to £10,000 of parcels on board at peak. The calculator returns: hire & reward motor cover as a legal requirement (a normal van policy would be void on the first claim); a goods-in-transit sum insured of £10,000, with a reminder to check the single-item limit and overnight cover; and £1 million public liability for doorstep damage. If a depot contract later demands £5m public liability, only that one figure changes. That is the shopping list to give an insurer.

Frequently asked questions

Do couriers need special insurance?

Yes. Carrying goods or parcels for payment is ‘hire and reward’ use, which a standard car policy and even ordinary business-use cover exclude. You need hire and reward (courier) motor insurance, or you are driving uninsured and can have your vehicle seized.

What is goods in transit insurance?

Goods in transit (GIT) covers the parcels and goods you are carrying against loss, theft or damage. You choose a sum insured for the maximum value on the vehicle at any one time, and there is usually a lower single-item limit, so check it if you carry high-value items.

How much goods in transit cover do I need?

Set the sum insured to the highest total value of goods you would ever have on board at once, not the value of a single parcel. Multi-drop parcel couriers often insure £5,000 to £25,000, while same-day and high-value work can need much more. Under-insuring means claims are cut back.

Do food delivery drivers need courier insurance?

Yes. Delivering takeaways for apps like Uber Eats, Just Eat or Deliveroo is hire and reward use, so a car or motorbike needs fast-food or food-delivery hire and reward cover. Standard social, domestic and pleasure insurance does not cover it and would be void on a claim.

Is public liability included in courier insurance?

Not automatically. Hire and reward motor cover deals with the vehicle, and goods in transit covers the load, but public liability – for injury or damage you cause while delivering, such as at a customer’s door – is a separate add-on that most couriers should carry at £1m to £5m.

Does courier insurance cover multiple drivers or vehicles?

It can. A fleet courier policy covers several vehicles and named drivers under one schedule, and if you employ drivers you also need employers’ liability by law. Tell your insurer every vehicle and driver so cover is not invalidated.

Source: “hire and reward” use and the requirement for valid insurance to carry goods for payment follow UK motor-insurance law – see GOV.UK – Vehicle insurance. Goods-in-transit and public-liability limits reflect standard UK courier-insurance conventions.