Your guide to public liability insurance for couriers

In today's busy and increasingly interconnected world, courier businesses are more in demand than ever before. As more and more people and businesses depend on courier services to transport their goods quickly, the risk of accidents happening during delivery operations is ever increasing.

That’s why public liability insurance is a crucial safeguard for both self-employed couriers and larger courier businesses alike. It provides essential protection against claims from third parties for injuries or property damage caused by business activities.

This guide will walk you through everything you need to know about public liability insurance for couriers, including what it covers, why it’s important, and how to find the right insurance policy for your business. Let’s get started!

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Do couriers need public liability insurance?

While public liability cover isn't a legal requirement for businesses in the UK, it is highly recommended for all couriers and courier businesses.

Couriers are constantly on the go, delivering to homes, businesses, and public spaces - given their frequent interaction with clients and the public, whether on their premises or elsewhere, it is crucial to have public liability cover in place should an unforeseen accident happen.

Public liability insurance is strongly recommended for:

• Self-employed couriers / freelance drivers: such as delivery drivers working for platforms like Uber Eats, Deliveroo and Amazon Flex.

• Employed couriers: for example, if you earn a salary as a takeaway driver for a restaurant, or as a delivery driver for companies like DHL or Hermes.

• Part-time or 'lifestyle' couriers: even if you work part-time as a delivery driver, public liability cover is strongly recommended.

• Courier businesses (of any size).

• Businesses that deliver their own goods.

Let's take a look at some scenarios for couriers where having public liability in place is essential:

• Accidental bodily injury: a delivery driver carrying a heavy parcel accidentally drops it on the customers' foot, breaking their toe. Public liability insurance would cover medical costs and potential compensation.

• Accidental damage to a customer's property: a courier is in a rush to get to their next delivery, and while backing out of a tight driveway, they accidentally scratch a parked car belonging to a customer or neighbour. Public liability insurance would cover the costs associated with repairing the vehicle.

What does couriers' public liability insurance cover?

Public liability cover protects your courier business by covering legal fees and compensation costs if a claim is made against your business involving injury or death caused by your business activities, as well as damage to third-party property. This includes:

• Accidental bodily injury 

• Accidental death 

• Accidental damage to property 

• Total loss of property 

What does public liability insurance for couriers not cover?

Public liability insurance won't cover every type of claim. Below are five common exclusions:

1. Employee injuries

If an employee becomes ill or sustains an injury while working for your courier business, public liability insurance does not cover compensation claims or legal fees.

You'll need employers liability insurance for this, which is a legal requirement in the UK if you employ staff

2. Loss or damage to goods being delivered

If the parcels or items a courier's transporting are lost, stolen, or damaged, this falls under goods in transit (GIT) insurance, not public liability.

3. Damage to your own delivery vehicle:

If a courier's van or bike is involved in an accident or damaged in any way, this is covered by hire and reward insurance, not public liability.

4. Theft of your own personal belongings

If a courier's personal items (e.g., phone or wallet) are stolen from their vehicle or while on a delivery, this would generally require personal belongings cover.

5. Criminal acts

Public liability insurance won't cover any damage or injuries that occur while you're breaking UK laws or committing a crime.

What insurance do I need to become a courier?

Without a doubt, the first business insurance policy couriers need is hire and reward insurance (also known as courier van insurance). This is the absolute legal requirement for any individual or business using a vehicle to transport goods in exchange for payment. Standard personal motor insurance policies are invalid for this commercial use.

Couriers might also want to consider several other key types of insurance to protect their business in the worst-case scenario. As well as public liability insurance, goods in transit cover is also important for couriers (which we will detail below).

Many insurance providers offer tailored couriers' insurance policies. These typically combine a range of individual cover types (almost always including public liability, hire and reward & goods in transit), into one policy specifically designed for couriers.

Couriers' insurance policies may include some or all of these cover options - if they aren't included, you can add them on as extras. Always check with your insurer first to see what's included.

Hire and reward insurance

Also known as courier van insurance, this type of cover is legally required if you earn money by transporting goods that aren't your own (e.g., fast food delivery drivers). This covers you in case your vehicle is damaged or causes damage to another vehicle while you’re out running deliveries.

Hire and reward insurance is typically available for wide range of vehicles used for delivery, including cars, vans, motorbikes and scooters.

Employers' liability insurance

Employers liability insurance protects your business financially should an employee make a claim against you for an incident that causes personal injury or property damage.

This type of insurance is legally required in the UK if you employ staff for your courier business.

Goods in transit insurance

A must-have for couriers, goods in transit (GIT) insurance protects the items a courier is transporting against loss, theft, or damage while they are on the move. There is usually a maximum value per item, and a maximum value for the entire delivery. It does not cover the vehicle being used for delivery.

Breakdown cover

Breakdown cover offers assistance in case your vehicle breaks down while on the road. Breakdown cover can range from simply Assistance, Recovery, or extend to Home start and EU breakdown.

Fleet insurance

Fleet insurance is designed for larger courier businesses, typically covering five or more vehicles. It allows you to insure all your vans and drivers under a single policy, simplifying your insurance and potentially saving you money.

Legal expenses cover

Legal expenses insurance covers legal costs like solicitor fees and court expenses for business-related legal action taken against you.

Personal accident cover

Personal accident insurance protects you financially until you recover from any injury or illness that leaves you unable to work.

Cyber and data insurance

Cyber and data insurance protects you against the consequences of a cyber attack or data breach, offering technical, legal, and PR assistance.

Tools and equipment cover

If a courier uses specific tools or equipment (e.g., trolleys, hand-held scanners, specialised packaging) for their job, this type of insurance covers them against theft, damage or loss.

Commercial property insurance

Also known as business buildings insurance, it covers the cost of repairing or rebuilding your business premises (for example, if your courier company operates from a physical office or warehouse) if they are damaged or destroyed by events like fire, flood, or storms. It typically covers the physical structure of the building and its permanent fixtures.

How much does public liability insurance for couriers cost?

There's no 'one size fits all' cost for couriers' public liability insurance, and it depends on the insurance provider. However, generally, insurance premiums are calculated based on the following factors:

• The level and types of cover you choose: Public liability policies typically offer limits like £1 million, £2 million, or £5 million. The higher the limit you choose, the more expensive the premium will be. Also, any optional covers you choose to add to your policy will increase the cost

• Size of business: larger courier businesses or those with more staff generally face higher insurance costs. This is because more people and vehicles increase the overall risk of incidents.

• Nature of business: the type of delivery work significantly impacts premiums. If couriers frequently enter private homes, handle hazardous items, or operate in busy public areas, the risk of causing injury or damage is higher, leading to increased costs.

• Your excess: choosing a higher excess may reduce your premium, but make sure you have the budget for it.

• Your claims history: A history of previous public liability claims will likely increase your insurance premium, while a clean record can help keep it lower.