Self-Employed Courier Insurance: Solo Operator Coverage

Introduction

Being self-employed as a courier gives you freedom: you choose your hours, your routes, and often the platforms you work with. But it also means you carry the risk personally. One accident, one stolen van, or one allegation of damaged goods can stop your income overnight.

Self-employed courier insurance is designed to protect your vehicle, your livelihood, and your legal position when you’re delivering parcels, food, documents, or specialist items. This guide explains the key covers solo operators typically need, how insurers assess risk, and how to avoid gaps that can invalidate a claim.

What is self-employed courier insurance?

“Courier insurance” usually refers to a combination of covers built around hire and reward vehicle use. Standard social, domestic and pleasure (SDP) or even “business use” motor insurance often does not cover carrying goods for payment.

A typical courier insurance package can include:

• Courier vehicle insurance (hire and reward)

• Goods in Transit (GIT)

• Public liability

• Employers’ liability (only if you employ staff)

• Personal accident / income protection

• Legal expenses

• Breakdown cover

The right mix depends on what you deliver, your vehicle type, and whether you work via an app/platform, subcontract to a larger firm, or contract directly with businesses.

Why “hire and reward” matters (and where people get caught out)

If you’re paid to deliver goods, you’re using your vehicle for hire and reward. This can apply whether you:

• Deliver parcels for an online marketplace

• Deliver food for a restaurant or app

• Carry documents between offices

• Provide same-day delivery services

A common problem for new couriers is assuming “business use” is enough. In many cases, it isn’t. If your policy doesn’t include hire and reward, a claim following an accident while delivering could be declined.

Who needs solo courier cover?

If you’re a one-person operation, you still face the same risks as a larger fleet—sometimes more, because there’s no backup vehicle and no spare driver.

Solo courier insurance is relevant if you are:

• A self-employed van driver delivering parcels

• A car courier doing multi-drop deliveries

• A motorcycle/scooter courier

• A same-day courier doing urgent deliveries

• A specialist courier (medical samples, high-value items, fragile goods)

Even if a platform provides some limited cover, it may not fully protect you (or may have strict conditions). Always check what you’re responsible for contractually.

Core cover 1: Courier vehicle insurance (motor)

Your motor policy is the foundation. For a self-employed courier, the key is ensuring it includes:

• Correct use class: hire and reward / courier use

• Correct vehicle details: modifications, signwriting, security

• Correct driver details: convictions, claims, mileage, experience

Third party, third party fire & theft, or comprehensive?

• Third party only: legal minimum, but no cover for your vehicle.

• Third party fire & theft: adds cover if the vehicle is stolen or damaged by fire.

• Comprehensive: typically the broadest protection, and can be cost-effective when you factor in vehicle value and downtime.

For many couriers, comprehensive cover is worth considering because your vehicle is your income.

Courtesy vehicle and downtime

A “courtesy vehicle” after an accident is not always suitable for courier work, and may not be insured for hire and reward. If downtime would hit you hard, ask specifically about:

• Replacement vehicle options

• Whether replacement is insured for courier use

• Timescales and limits

Core cover 2: Goods in Transit (GIT)

Goods in Transit insurance covers loss or damage to items you carry while delivering. This is crucial if:

• You’re contractually liable for the goods

• You carry high volumes or higher-value items

• You do multi-drop routes where parcels are handled frequently

What GIT typically covers

• Accidental damage during transit

• Theft following forcible entry

• Loss in certain circumstances (policy wording varies)

Common GIT exclusions to watch

• Unattended vehicle exclusions (especially if doors unlocked or keys left)

• Theft without visible forced entry

• Inadequate packaging

• High-value items over a single-item limit

• Certain goods (cash, jewellery, phones, alcohol, tobacco, temperature-controlled goods)

If you deliver specialist goods (medical devices, pharmaceuticals, fragile electronics), you may need tailored wording.

Core cover 3: Public liability insurance

Public liability covers claims if you injure someone or damage property while working. For couriers, this could include:

• Knocking over a customer in a hallway

• Damaging a client’s door, flooring, or reception area

• Causing damage while loading/unloading at a site

Some platforms and commercial clients require proof of public liability before they’ll onboard you.

Do self-employed couriers need employers’ liability?

If it’s just you, typically no. But you may need employers’ liability if you:

• Employ someone (even part-time)

• Use labour-only subcontractors in a way that creates an employment relationship

• Have a mate helping load/unload regularly

This is a legal requirement in most cases where you have employees. If you’re unsure, get advice—getting this wrong can be expensive.

Optional but valuable covers for solo operators

Personal accident

If you’re injured and can’t work, personal accident cover can pay a lump sum or weekly benefit (depending on policy). For solo couriers, this can be the difference between staying afloat and falling behind.

Income protection

Income protection can provide ongoing payments if illness or injury stops you working. It’s not always packaged with courier policies, but it’s worth exploring.

Legal expenses

Motor legal expenses can help recover uninsured losses (excess, loss of earnings) after a non-fault accident. Some policies also include contract disputes or HMRC-related legal helplines.

Breakdown cover (courier-friendly)

Standard breakdown cover may exclude commercial use or multi-drop work. Look for:

• Cover for business use/hire and reward

• National recovery

• Home start

• Key replacement

What affects the cost of self-employed courier insurance?

Insurers price courier insurance based on risk. Common rating factors include:

• Vehicle type (car, van, scooter) and value

• Engine size and performance

• Your age and driving experience

• Claims and convictions

• Postcode (theft and accident frequency)

• Annual mileage and typical routes

• Type of deliveries (food vs parcels vs high-value)

• Overnight parking and security (garage, driveway, trackers)

• Multi-drop frequency and time pressure

Why food delivery can be rated differently

Food delivery often involves short trips, frequent stops, and busy urban areas. Parcel delivery can involve longer routes and higher load values. The risk profile differs, so make sure your insurer knows exactly what you do.

Common mistakes that cause claim problems

Avoid these common pitfalls:

• Not declaring hire and reward use

• Using the wrong vehicle type (e.g., insured as “private car” when used for courier work)

• Understating mileage

• Not declaring modifications (roof racks, racking, remaps)

• Leaving keys in the vehicle (even briefly)

• Assuming platform cover is enough

• Not matching GIT limits to your real exposure

If you’re ever unsure, it’s better to disclose and get it endorsed than to gamble.

How much Goods in Transit cover do you need?

Start with your worst-case scenario:

• What’s the maximum value you could carry at once?

• Do you carry multiple high-value items?

• Are you liable for the full value, or only up to a capped amount under your contract?

Many solo couriers choose limits like £5,000–£10,000, but the right number depends on your work. If you do same-day business deliveries or specialist items, you may need more.

Contract considerations: what your client/platform expects

Before buying cover, review your contract or onboarding documents. Look for requirements around:

• Minimum motor cover level (often comprehensive)

• Minimum public liability limit (commonly £1m–£5m)

• Goods in transit limits and conditions

• Security requirements (alarms, trackers)

• Proof of insurance and renewal dates

If you can share those requirements with your broker, they can help ensure your policy meets them.

Risk management tips that can reduce claims (and sometimes premiums)

Insurers like couriers who take security seriously. Practical steps include:

• Use a steering wheel lock and visible deterrents

• Fit a tracker for higher-value vans

• Park in well-lit areas and avoid leaving goods overnight

• Keep doors locked during drops (even “quick” ones)

• Photograph loads and delivery condition where appropriate

• Use proper racking and load restraints

Even if these don’t always reduce premiums immediately, they reduce the chance of a claim and protect your reputation.

How to choose the right insurer or broker

Courier insurance isn’t one-size-fits-all. A good broker will:

• Confirm your vehicle use is correctly insured for hire and reward

• Ask what you deliver and where you operate

• Help you choose realistic GIT and liability limits

• Explain exclusions clearly (especially unattended vehicle terms)

• Offer options for young drivers, new ventures, and high-mileage work

Be wary of buying on price alone if the wording doesn’t match your day-to-day work.

Claims: what to do after an accident or theft

If something happens:

1. Make the scene safe and call emergency services if needed.

2. Document everything: photos, dashcam footage, witness details.

3. Report theft to the police and get a crime reference number.

4. Notify your insurer promptly (delays can cause issues).

5. Inform your client/platform in line with your contract.

For goods claims, keep delivery notes, manifests, and proof of value where possible.

FAQs: Self-employed courier insurance

Do I need courier insurance if I only deliver part-time?

Yes—if you’re delivering goods for payment, even occasionally, you typically need hire and reward cover for those journeys.

Is “business use” the same as courier insurance?

Usually not. Business use often covers travel to different places for work (e.g., visiting clients), but not carrying goods for payment. Courier work generally needs hire and reward.

Does my platform provide insurance?

Some platforms provide limited cover, but it may not cover your vehicle, may have excesses, and may only apply while logged into the app. Always check the details.

Can I insure a car for courier work?

Often yes, depending on the insurer and the type of courier work. However, some insurers restrict hire and reward to certain vehicle types or delivery categories.

Do I need goods in transit insurance?

If you could be held responsible for lost or damaged goods, or your contract requires it, GIT is strongly recommended.

What public liability limit should I choose?

Many couriers choose £1m–£5m depending on client requirements and the environments they deliver into (shops, offices, construction sites).

What if I carry high-value items?

You may need higher GIT limits, higher single-item limits, and specific wording for the goods you carry. Tell your broker exactly what you transport.

Will insurance cover parcels stolen from an unattended van?

Sometimes, but policies often have strict conditions (locked vehicle, forced entry, goods out of sight, time limits). Always check the unattended vehicle clause.

Can I get cover if I have points or previous claims?

In many cases, yes. It may cost more, and some insurers may impose restrictions, but specialist markets can often help.

Does courier insurance cover me abroad?

Some policies include limited European cover, but courier work abroad may need specific extension. If you do cross-border deliveries, mention it upfront.

How can I reduce my premium?

Choose the right vehicle, improve security, keep a clean driving record, consider higher voluntary excess (if affordable), and make sure your declared mileage and use are accurate.

Conclusion

As a self-employed courier, your vehicle and your ability to work are your business. The right courier insurance should do more than tick a box—it should protect your income when things go wrong.

If you’re unsure whether your current policy includes hire and reward, or you want to check your goods in transit and liability limits match your real exposure, it’s worth getting your cover reviewed before you’re on the road.

Need a quote or advice? Speak to a specialist commercial broker who understands courier risks, multi-drop work, and the common gaps that catch solo operators out.