Haulage Insurance vs Courier Insurance: Coverage Comparison

Introduction

If you run vehicles for a living, you already know one thing: not all “commercial vehicle insurance” is created equal. A business moving palletised freight across the UK faces very different risks to a same-day courier delivering parcels in city centres. That’s why haulage insurance and courier insurance exist as distinct solutions.

In this guide, we’ll break down the key differences in coverage, who each policy is designed for, what insurers look for, and how to avoid the most common (and expensive) gaps.

Quick definitions (what each policy is really for)

What is haulage insurance?

Haulage insurance is designed for businesses that transport goods—often heavier, higher-value, or bulk loads—typically using HGVs, articulated lorries, rigid trucks, and fleets. It often sits alongside (or includes) specialist covers such as goods in transit, public liability, employers’ liability, and sometimes marine cargo style extensions for international movements.

Common haulage operations include:

• General haulage (pallets, FMCG, building materials)

• Refrigerated haulage (chilled/frozen goods)

• Tankers (liquids, chemicals)

• Abnormal loads and plant movement

• Container transport (ports and intermodal)

What is courier insurance?

Courier insurance is built for businesses delivering items quickly, frequently, and often in high-traffic areas—using vans, cars, motorcycles, or bicycles (depending on the operation). It’s especially relevant if you’re working for courier networks, gig-economy platforms, or running a local delivery service.

Common courier operations include:

• Same-day and multi-drop parcel delivery

• Food delivery and takeaway delivery

• Pharmacy and medical deliveries

• Document and legal courier work

• B2B local deliveries

The core difference: risk profile and how insurers rate you

Insurers price and structure these policies based on exposure. The biggest drivers are:

• Vehicle type and weight (van vs HGV)

• Mileage and routes (motorways vs city centres)

• Load type and value (pallets vs parcels; controlled goods)

• Stop frequency (multi-drop increases theft and accident risk)

• Driver profile (age, experience, claims history)

• Security and storage (overnight parking, trackers, immobilisers)

In simple terms:

• Haulage tends to involve higher third-party severity (bigger vehicles) and higher cargo values.

• Courier tends to involve higher frequency of incidents (more stops, more reversing, more urban driving) and higher theft exposure.

Coverage comparison: haulage vs courier (side-by-side)

1) Vehicle insurance (the base policy)

Both haulage and courier insurance start with commercial motor cover:

• Third Party Only

• Third Party, Fire & Theft

• Comprehensive

Where they differ:

• Courier policies must explicitly allow carriage of goods for hire and reward and often multi-drop.

• Haulage policies must reflect HGV use, sometimes including trailers, swap bodies, and specialist equipment.

Watch-out: If you buy standard van insurance and then do paid deliveries, you may not be covered.

2) Goods in Transit (GIT)

This is where the difference becomes obvious.

Courier GIT typically focuses on:

• Parcels, documents, small packages

• High stop frequency theft risk

• Loading/unloading damage

Haulage GIT often needs:

• Higher single-load limits

• Palletised freight, bulk goods, machinery

• Temperature-controlled goods (if refrigerated)

• International transit extensions (if applicable)

Key questions to check:

• What is the single item limit?

• What is the vehicle limit (max per vehicle)?

• Is theft covered if the vehicle is left unattended?

• Are there conditions around forced entry, alarms, or secure compounds?

3) Public Liability (PL)

Both courier and haulage businesses can cause third-party property damage or injury away from the vehicle itself.

Examples:

• A courier drops a heavy parcel and injures a customer.

• A haulage operator damages a client’s loading bay or racking.

PL is often essential if you:

• Deliver to commercial premises

• Enter customer sites

• Use tail lifts, pallet trucks, or handling equipment

4) Employers’ Liability (EL)

If you employ staff (including drivers, warehouse staff, admin), Employers’ Liability is usually a legal requirement in the UK.

Haulage firms often need EL due to:

• Multiple drivers

• Yard staff and mechanics

• Loading operations

Courier businesses may also need EL if they employ drivers (not genuine self-employed subcontractors).

5) Trailer and equipment cover

More common in haulage:

• Trailer insurance (owned, hired-in, or attached)

• Cover for curtains, tail lifts, cranes, Moffett mounts

• Plant and equipment used for loading/unloading

Courier operations may need:

• Cover for handheld scanners, PDA devices, and delivery equipment

• Personal possessions and tools

6) Breakdown and recovery

Both need it, but the requirements differ.

Courier breakdown cover should consider:

• Rapid roadside assistance

• Replacement vehicle options

Haulage breakdown cover should consider:

• HGV recovery complexity

• Specialist recovery for articulated vehicles

• Load recovery and onward transport

7) Legal expenses and claims support

Often overlooked, but valuable:

• Motor legal expenses (uninsured losses)

• Contract disputes (especially for haulage contracts)

• Employment disputes (if you employ staff)

Typical exclusions and conditions (where claims go wrong)

Common courier pitfalls

• No “hire and reward” use declared

• Unattended vehicle theft conditions not met

• High-value items excluded (phones, laptops, jewellery)

• No cover for food delivery if not specified

Common haulage pitfalls

• Incorrect load description (e.g., “general haulage” but actually carrying hazardous goods)

• No cover for international transit when crossing borders

• Temperature-control claims denied due to lack of maintenance records

• Trailer not declared or wrong basis of cover (owned vs hired)

What does each policy usually cost?

Pricing varies heavily, but these factors matter most:

Courier insurance cost drivers

• Multi-drop volume and postcode areas

• Vehicle type (van vs car)

• Overnight parking and security

• Driver age and experience

• Claims history

Haulage insurance cost drivers

• HGV type and weight

• Fleet size and annual mileage

• Driver CPC compliance and training

• Load type and value

• Operating radius (local vs national vs international)

A good broker will help you present the risk properly—especially if you’ve invested in driver training, telematics, trackers, and secure parking.

Which one do you need? (simple decision guide)

Choose courier insurance if:

• You do multi-drop parcel delivery

• You work for courier networks/platforms

• You deliver food, documents, or small packages

• You operate mainly in towns/cities

Choose haulage insurance if:

• You move palletised freight or bulk loads

• You operate HGVs or articulated lorries

• You carry higher-value or specialist goods

• You do long-distance trunking or international work

You may need a hybrid approach if you:

• Run a mixed fleet (vans + HGVs)

• Do both parcel delivery and pallet freight

• Subcontract across different contracts

Real-world scenarios (what the right cover looks like)

Scenario A: Same-day courier in Cardiff and Bristol

• Van insurance with hire & reward

• Goods in transit for parcels and documents

• Public liability (deliveries to offices and homes)

• Optional: tool/equipment cover for scanners

Scenario B: General haulage firm moving pallets nationwide

• HGV motor fleet policy

• Goods in transit with higher vehicle limits

• Trailer cover (owned and hired-in)

• Public liability and employers’ liability

• Optional: breakdown/recovery and legal expenses

Scenario C: Refrigerated haulage for food manufacturers

• HGV motor policy

• GIT including deterioration of stock (subject to conditions)

• Temperature-control extensions

• Strong maintenance and monitoring requirements

What information insurers will ask for (get this ready)

To quote accurately (and avoid delays), expect to provide:

• Vehicle details (make/model, weight, security)

• Driver details (licences, experience, claims)

• Use and radius (local/national/international)

• Goods carried (type, max value, any exclusions)

• Overnight parking arrangements

• Risk management (telematics, trackers, training)

How to avoid underinsurance and coverage gaps

• Don’t guess your maximum load value—check invoices and contracts.

• Make sure your policy matches your contract terms (some contracts require specific GIT limits).

• Confirm whether you need cover for subcontractors or hired-in vehicles.

• If you carry high-risk items, ask about specified items and special conditions.

FAQs

Is courier insurance the same as van insurance?

Not usually. Courier insurance is commercial vehicle insurance that specifically includes hire and reward and often multi-drop use.

Can an HGV be insured on a courier policy?

Typically no. HGV operations are usually rated and insured under haulage or HGV-specific motor policies.

Do I need goods in transit insurance?

If you carry other people’s goods, it’s strongly recommended. Motor insurance covers the vehicle and third-party liabilities, not the customer’s goods.

What if I use my van for both business and deliveries?

You must declare all uses. If you do deliveries for payment, you need hire and reward cover.

Does public liability cover accidents while driving?

No. Road traffic incidents are handled under motor insurance. Public liability is for incidents arising from your business activities away from the vehicle policy.

Are high-value parcels covered automatically?

Often not. Many policies have single-item limits and exclude certain high-theft items unless specifically agreed.

What’s the difference between “carriage of own goods” and “hire and reward”?

Carriage of own goods means you’re transporting items your business owns (e.g., tools, stock). Hire and reward means you’re paid to transport goods belonging to others.

Conclusion: choose the policy that matches your operation

Haulage insurance and courier insurance might sound similar, but they’re built for different realities. Couriers need cover that reflects high-frequency stops, urban driving, and parcel theft risks. Hauliers need cover that reflects heavy vehicles, higher-severity incidents, and larger cargo values—often with trailers and specialist operations.

If you’re unsure, the safest move is to review your actual day-to-day work: vehicle type, goods carried, routes, and contract requirements. Then structure the policy around that reality—so you’re protected when it matters.

Need a quote or a quick coverage check? Speak to a specialist commercial insurance broker who understands courier and haulage risks and can tailor the cover to your contracts and operating model.