Do I need special insurance to become a delivery driver?

Are you thinking about setting up your own courier business? If so, then one of the first things you’ll need to do is get yourself a van that will be used to transport your customers’ goods from A to B and back again!
 
But before you can get your van on the road and start delivering, you need to take out specialist courier insurance, which is a type of commercial van insurance. This handy guide contains everything you need to know about this type of policy.
 

How is courier insurance different from normal insurance?

Courier insurance is similar to typical insurance policies in that it provides financial protection in the event you’re involved in an accident that results in damage to property or injury.

Third party costs are always covered, but only comprehensive policies protect you if you’re injured or your van is damaged in the accident and needs repairing or replacing.

Depending on the policy, insurance may also include cover against fire and theft.
 
But here’s where courier insurance is different: unlike standard policies, courier insurance provides protection for your cargo – i.e. the goods you’re carrying in your van.

This policy can cover goods if they're lost, damaged or stolen while in your van and during transit.
 

Courier insurance: covering unique risks

Ultimately, couriers face unique risks that need to be covered with specialist insurance.

They make multiple stops, they’re on the road for long periods of time, plus they could have cargo in their van worth thousands of pounds at any one time.
 
Because couriers are on the road for much of the day, constantly stopping and starting and often driving through small, local areas, insurance providers consider them to be at a higher risk of having an accident and making a claim.

That’s why you might find that the cost of courier insurance is a little bit more than your car insurance premium – but companies like Insurance Factory work hard to get courier drivers great cover for a price that won’t break the bank.
A man using a forklift to load parcels into a courier van

Courier or haulage?

Courier insurance is suitable if you make lots of drop-offs every day to different addresses usually in a smaller local area.

If you make one or two bigger drop-offs per day, usually to the same address, then you’re likely to need haulage insurance.
 

Levels of courier van insurance

As we’ve mentioned, there are different levels of courier insurance to choose from, just like there are different levels of can or van insurance. To recap:
 
  • Third party only cover will protect the third party if they are injured or their property is damaged in the event of an accident. You, or your van, won’t be covered – meaning any associated costs will come from your back pocket.
  • Third party fire and theft has all the benefits of a third party policy, but you’ll also be able to claim if your van was stolen or it caught fire.
  • Comprehensive insurance provides you with the highest level of cover for you and your van. As well as third party costs being covered, you’ll be able to claim for costs to repair or replace your van in an incident.
 
Many couriers choose to take out comprehensive insurance as it offers them the most protection when they’re out on the road.

Just think: if you were involved in an accident, could you afford to fork out to repair or replace your van? With a third party policy, you’d be expected to cover the costs, but comprehensive policies will make sure you get that money back.
 
Paying a slightly higher premium for greater, all-round protection could possibly save you thousands of pounds in the long run, if you ever needed to claim.

This should bring you peace of mind as you deliver the goods to your happy customers!
 
When your van is your livelihood, you need to be confident your insurance policy will help you to get your business back up and running as soon as possible if anything were to happen.

Insurance Factory can arrange bespoke courier policies tailored exactly to your needs, and will be on hand to support you if and when you need us.
Two couriers unloading large boxes from the back of their van on a delivery

Goods in transit cover

Goods in transit cover is an essential type of insurance under your courier policy.

As a courier, you’re responsible for your customers’ goods whilst they’re in transit – if they were to be damaged or go missing, no doubt they’ll hold you accountable. And you don’t want to be left facing a hefty bill to repair or replace these items.
 
Goods in transit insurance may make it possible to claim back losses if you goods are lost, stolen or damaged during transit.

Depending on the policy, you might even be able to claim if items in your locked van are stolen, damaged or lost overnight, as well as any losses resulting from delays to delivery.
 
What’s important is that you estimate the value of the items in transit as accurately as possible, to make sure you’ve got enough cover for them. Bear in mind that policies have different maximum values for single items and total load.
 

Get covered with Insurance Factory

Insurance Factory offers a wide range of services for trades, including:
 
  • Goods in transit cover
  • Hire and reward insurance
  • Delivery insurance
  • Light haulage insurance
  • Vehicle and goods cover
  • Van courier insurance
 
Even if you don’t feel like one of the above applies to you, the specialists at Insurance Factory are more than happy to speak with you about your requirements and see if they have a suitable solution.
 
We can also provide policies with features and benefits tailored to your business and delivery vehicle, such as:
 
  • Cover for vehicles up to 7.5 tonnes
  • Goods in transit cover up to £10,000
  • Liability insurance up to £2 million, with the option to increase to £5 million
  • Cover for carriage of goods, hire and reward
 
Get your courier business off to a great start with cover from Insurance Factory. Get a quote today!