Guide · updated 2026-10-27
Courier insurance explained: hire and reward, goods in transit and public liability
A UK van courier normally needs three kinds of cover: hire-and-reward motor insurance (to drive the van for paid deliveries), goods-in-transit insurance (for the items you carry) and public liability insurance (for damage or injury you cause at a customer's property). Ordinary van insurance covers none of the paid-delivery risks, so a driver doing courier work on standard cover is effectively uninsured for that work.
Hire-and-reward motor insurance
This is the motor policy that lets you carry other people's goods for payment. Insurers often sell it as 'courier insurance'. Without it, a claim from an accident during a paid delivery can be refused, even if the van is otherwise insured. Tell the insurer what you carry and roughly how many miles you do; multi-drop parcel work and furniture delivery are often priced differently.
Goods-in-transit insurance
Goods in transit (GIT) covers the items in your van against loss, theft and damage while they're being carried and, depending on the policy, while being loaded and unloaded. The cover limit is the most the policy pays per load. Platforms set a minimum: DropNPickUp requires at least £50,000.
Read the exclusions. Many GIT policies exclude goods left in an unattended van overnight, high-value items such as jewellery and art above a set value, and damage from poor packing. If you carry antiques or pianos, check the policy names them.
Public liability insurance
Public liability covers claims from third parties: a scraped doorframe, a damaged floor, someone tripping over a strap. Two-person furniture work happens inside people's homes, so it's worth having even when a platform doesn't insist. Building sites and trade customers often ask to see a certificate.
What drives the price
Premiums vary widely. The main factors insurers look at:
- Your age, driving record and claims history
- The van's value, weight and where it's kept overnight
- The kind of goods you carry and the GIT limit you choose
- Annual mileage and whether you do multi-drop or single runs
- The excess you're willing to pay on a claim
What DropNPickUp checks
Before an owner driver can take work with us we check their hire-and-reward motor insurance and goods-in-transit cover of at least £50,000, along with their licence, identity and right to work. Expiry dates are tracked, and drivers are asked for the new documents before cover runs out.
Quick answers
Is courier insurance the same as hire and reward?
Usually, yes. 'Courier insurance' is the common name for a motor policy that includes hire-and-reward use. Some insurers bundle goods in transit and public liability into a courier package; others sell them separately, so check what the quote includes.
How much goods-in-transit cover do I need?
Enough to cover the most valuable single load you'll carry, and at least the platform's minimum. For furniture and bulky goods, £50,000 is a common floor; it's DropNPickUp's minimum.
Does a van I hire come with courier insurance?
Only if the hire says so. Many hire vans are insured for the hirer's own use, not hire and reward. If you hire a van for delivery work, get written confirmation that paid deliveries are covered, and check the excess.