Courier work needs two covers and people usually buy one. The motor policy has to be rated for hire and reward, because you are carrying other people's goods for payment, and a policy rated for own goods does not cover that work at all. The parcels themselves are not in the motor policy either: damage or loss of a customer's consignment is goods in transit cover, and clients frequently require it at a stated limit before they will give you work.
Hire and reward is a use class, not an extra
Motor insurance is compulsory under Part VI of the Road Traffic Act 1988 for any vehicle used on a road, and the class has to match the use. Carrying other people's goods for payment is hire and reward whether the work comes from a platform, a broker or a direct client, and whether it is a full time round or a few evenings. A policy in the wrong class leaves the work uninsured and, in law, the vehicle uninsured for that use.
Goods in transit, and the limit clients ask for
Goods in transit answers for loss of or damage to the consignment while you carry it, with a limit per load rather than per parcel and conditions about unattended vehicles, overnight parking and security. Clients and networks state the limit they require, commonly a few thousand pounds per load and much more for high value work, and evidence of it is often part of onboarding.
Platform work, and the periods nobody asks about
Work that moves between logged in, job accepted and logged out is priced differently by different insurers, and some policies cover only part of that cycle. A driver who does multi drop between other work needs to know whether the cover runs for the whole shift or only while a job is live. Asking at quote is cheaper than establishing it after an accident between drops.
Where operator licensing starts
Carrying goods for hire and reward in heavier vehicles brings goods vehicle operator licensing, with thresholds by weight and some international van work included since 2022. It is not insurance and it is a condition of doing the work lawfully, which an insurer will expect to have been met before it answers a claim.
Questions people ask about courier insurance
What insurance do couriers need?
Motor cover in the hire and reward class for the work itself, goods in transit for the consignments, public liability where clients or sites require it, and employers' liability once anybody is employed.
Is hire and reward the same as goods in transit?
No. Hire and reward is the motor use class that permits carrying other people's goods for payment. Goods in transit covers the goods themselves against loss or damage. Most couriers need both.
Does courier insurance cover the parcels?
Not the motor policy. Parcels are covered by goods in transit, which carries a limit per load and conditions about unattended vehicles and overnight security.
Do I need it for occasional delivery work?
Yes. The use class follows the work rather than its frequency: carrying other people's goods for payment is hire and reward even for a few shifts a week.