Parcel Delivery Insurance

The shift from high street to online shopping has led to a boom in delivery drivers bringing our online purchases to our door. When you’re handling and delivering other people’s packages, you need to be sure that you have parcel delivery insurance that not only protects the items you deliver, but also your livelihood as well.

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For delivery companies, contract drivers, and courier firms, Park Insurance can work to find you the right parcel delivery insurance that suits your business and the risks you face.


What does parcel delivery insurance cover?

Parcel delivery insurance isn’t a single policy. Instead, it can combine several types of insurance to protect different aspects of a delivery business. This type of insurance portfolio usually includes:

  • Commercial vehicle cover – Standard vehicle insurance is not sufficient to cover delivery drivers for business operations. Parcel delivery vehicle insurance protects vehicles and drivers within your delivery business.
  • Goods in transit cover – This protects the items you transport and deliver against claims for loss, damage, or theft
  • Employers’ liability insurance – ELI is required if you hire members of staff within your delivery business, including part-time workers
  • Public liability insurance – PLI financially protects you against the financial cost of any claims for any insured event made by a member of the public, subject to terms.

What isn't covered

Parcel delivery and goods in transit policies can contain exclusions, limits and conditions that vary between insurers. These may include certain prohibited or restricted goods, inadequate packaging, pre-existing damage, unattended vehicle theft, delays or consequential losses, and goods whose value or nature has not been declared to the insurer.

Some types of goods may require specialist cover or specific policy extensions. Your broker can review the policy terms with you to make sure the cover is appropriate for the goods you carry and the way your business operates.

Different types of policies to consider

As well as public liability and employer’s liability, other types of policies are worth considering when you are putting together a parcel delivery insurance package, including:

  • Hire and reward - If you use a vehicle to carry goods or passengers for payment, you need motor insurance that covers the vehicle for the appropriate business use. For many delivery and courier operations, this will involve hire and reward use. Your policy must accurately reflect how the vehicle is being used.
  • Courier business cover – The courier industry is high-pressure and comes with unique challenges. Courier business cover is designed specifically for courier firms, whether you’re a small operation or have a large fleet of different vehicles to carry out your business.
  • Specialist vehicle/fleet cover – If you have specialist vehicles in your fleet, such as refrigerated vehicles, you may need specialist vehicle cover. If you have several vehicles operating within your business, fleet insurance may be more cost-effective than individual hire and reward cover for each. Ensure your fleet insurance covers the transport of goods and deliveries.
  • Business interruption cover – If your delivery company suffers a major business interruption, such as a depot fire or vehicle theft, business interruption cover can help cover everyday bills while you rebuild your business.
  • Loss of earnings – If you are a self-employed delivery driver, illness, an accident, or a breakdown could quickly stop you earning a living. Loss of earnings cover may help you to cover your bills while you wait for repairs or recover from an injury or illness and get back on the road.

What types of cargo or deliveries are covered?

The type of cargo depends on the stipulations in the courier delivery insurance policy. Some items are forbidden under strict guidelines, while others may carry special conditions to comply with the policy terms. Check with your broker to make sure the parcel delivery insurance you choose covers you for the type of packages you carry.

How much does parcel delivery insurance cost?

The cost of your parcel delivery insurance will depend on the type of deliveries you do, your vehicles, your location, and your business model. Park Insurance brokers use their position as preferred brokers to some of the UK’s leading insurance providers to find you competitively priced policies that suit both your needs and your budget.

Can I get insurance as a self-employed delivery driver?

Yes. Not all delivery drivers are provided with an insured company van, so with a self-employed delivery driver policy you can add the vehicle you use to your delivery driver policy. Choose your level of cover, from fully comprehensive, third-party fire and theft or third party only, and consider adding additions such as breakdown and replacement vehicle cover.

Keep moving with Park Insurance

For over 30 years, Park Insurance has provided bespoke insurance packages for delivery drivers, couriers, and parcel delivery companies. Our experience and expertise mean we understand both the insurance industry and your specific business needs. You can talk direct to one of our team to discuss your requirements or use our online Get a Quote function for a no-obligation quote today.

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Give us a call on 0117 955 6835 or click on the button below and we will be happy to contact you to discuss your needs.

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