In short
- Paid deliveries need hire and reward use.
- Occasional paid jobs need the right cover too.
- Goods in transit cover is usually separate.
- Check platform requirements before accepting delivery work.
What is courier van insurance?
Courier van insurance is motor insurance that includes hire and reward use for carrying other people's goods for payment. This includes parcel rounds and paid food deliveries.
Carrier van insurance is another term you may see. Names vary between insurers, so check the permitted use rather than relying on the policy's title.
How hire and reward differs from business use
Business use, also called carriage of own goods, lets you use your van for work such as travelling between sites and carrying your own tools or stock. Carrying other people's goods for payment needs hire and reward use.
These everyday examples show why the distinction matters:
A plumber
Customer visits with your own tools need business use.
A florist
Ask which use covers deliveries of your own bouquets.
A parcel courier
Paid parcel work needs hire and reward, even for one job.
How do these examples work?
A plumber visiting customers carries their own tools and fittings. That is carriage of own goods use. The class of use does not itself insure the tools.
A florist selling and delivering their own stock needs to check the class of use. Explain how you charge for deliveries and ask the insurer which use applies.
A parcel courier collecting from a depot carries other people’s goods for payment. That needs hire and reward, including a one-off paid job.
Our guide to van insurance classes of use explains the categories.
You can also read about carriage of own goods insurance if you carry your own business supplies.
Multi-drop and single-drop deliveries
Multi-drop work means making several deliveries on a round. Single-drop work means taking a load to one destination. Both can involve hire and reward. The number of stops doesn't turn paid delivery work into ordinary business use.
Describe your actual work when requesting a quote. Explain what you carry and how often you make deliveries. Ask whether the permitted use includes collections and return journeys, as well as both delivery patterns if you do them.
Include delivery routes and travel to depots in your annual mileage estimate. Tell your insurer if your work changes.
Hire and reward and your level of cover
Hire and reward is the use your motor insurance must allow for paid deliveries. The level of cover is a separate choice.
Third party is the legal minimum for driving on UK roads. See GOV.UK’s motor insurance guidance.
What does each level include?
| Level of cover | What it covers | Your van |
|---|---|---|
| Third party only | Damage or injury to other people, vehicles, animals or property. | Does not pay to repair your own van. |
| Third party, fire and theft | Third party cover, plus fire and theft protection for your van. | Fire and theft cover is subject to the policy terms. |
| Comprehensive | Third party, fire and theft cover, plus cover for damage to your van. | Check the policy terms and exclusions. |
Comprehensive can sometimes cost less than lower levels. Ask to see a price for more than one level, then check the cover and exclusions.
Check the compulsory excess and any voluntary excess together. This is the amount you may have to pay towards a claim. Read the exclusions alongside the level of cover.
Use the van insurance quote form at Vancova. A van insurance specialist will get in touch with your quote and explain the cover.
Goods in transit and public liability
| Type of cover | What it addresses |
|---|---|
| Courier motor insurance | Use of the van for hire and reward. |
| Goods in transit | The goods you carry. Usually separate from courier motor insurance. |
| Public liability | Claims for injury or property damage arising from work, subject to terms. |
| Employers’ liability | Employee illness or injury arising from work. Legally required with some exceptions. |
Hire and reward describes how you use the van. Goods in transit cover insures the goods you carry and is usually separate from courier van insurance.
Ask what goods the policy accepts and what limits apply. Check what it says about theft from an unattended van and damage during loading. If a contractor sets insurance requirements, check them against the policy wording.
Public liability may cover claims for injury or property damage arising from your work, subject to the policy terms. Ask how it applies to deliveries, including carrying parcels onto a customer's premises.
Neither public liability nor goods in transit is part of a standard van policy.
If you employ staff, employers' liability insurance is a legal requirement, with some exceptions. It is also separate from standard van cover.
A delivery booking does not confirm that your van is insured for the work.
Working for platforms or delivery contractors
A delivery booking or platform account doesn't confirm that your van is insured for the work. Before accepting jobs, check the contract's insurance requirements and ask who provides each type of cover.
If insurance is provided through a platform or contractor, ask:
- Does it apply to you and the van you're using?
- Which journeys does it include, and when does it start and end?
- Does it permit work from other platforms or customers?
- What insurance documents can you check?
Your certificate of motor insurance shows the uses you're covered for. Check it allows the paid deliveries you plan to make. Using your van differently from the use stated on the policy can make the insurance invalid.
Check personal journeys too. Many business policies include social use, but not all.
Explore the factors that can affect a van insurance premium.
Drivers' hours and operator licences
If you drive a van for business for more than four hours a day, Great Britain domestic drivers' hours rules apply. Check the rules before agreeing to a delivery schedule.
GOV.UK's guidance on driving a van explains drivers' hours and links to the detailed rules.
Vans over 3,500kg, and some van and trailer combinations, can need a goods vehicle operator licence. Check the requirements before changing your vehicle or adding a trailer.
For hire and reward deliveries into the EU, Iceland, Liechtenstein, Norway or Switzerland, check the standard international operator licence requirements before taking the job.
Motor insurance and operator licensing are separate checks.
What to have ready for an insurance enquiry
- Identify your van. Have the registration ready.
- Gather driver details. Include licences, test dates, other drivers, claims and convictions.
- Describe your driving. Give annual mileage and overnight parking details.
- Find your documents. Have any no claims proof ready.
Give the date you want cover to start. Before driving, check the policy documents show the correct registration, driver details and permitted use.
If you're buying for your business, you must make a fair presentation of the risk. A sole trader buying for the business is usually treated as a business customer.
Describe all the work your van does, including other jobs alongside delivery rounds.
Explain your trade and delivery work accurately. Declare changes from the van's original specification, including racking, roof bars and signwriting.
When you start your van insurance enquiry at Vancova, a van insurance specialist will get in touch with your quote.
The FCA-authorised specialist explains the cover, gives any advice and arranges any policy you choose. This guide gives general information.
Sending an enquiry does not start cover. Insurance only starts when a policy is in place and its start date and time have been reached.
Courier van insurance questions
Does business use include courier deliveries?
Carriage of own goods is for carrying your own work items. Carrying other people's goods for payment needs hire and reward. Check the permitted use on your certificate.
Are the parcels covered by courier van insurance?
Goods in transit cover insures the goods you carry. It's usually separate from courier motor insurance. Check the goods accepted and the policy limits.
Do occasional paid deliveries need hire and reward?
Yes. Carrying other people's goods for payment needs hire and reward even if the work is occasional. Check your insurance before taking the job.
This guide is general information. Ask the specialist to explain your cover and check the policy terms.
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