Which courier insurance do you need?

As a courier, you need the right courier insurance. It protects you, your vehicle, and your cargo.  

In this guide, we’ll cover the key types of insurance every courier needs. 

Hire and Reward Insurance 

Hire and Reward insurance is a basic legal requirement. This courier insurance covers you when you transport goods for payment and is different from regular car insurance, which does not cover business use. 

Why is this insurance so important? First, it protects you. If you have an accident while delivering goods, Hire and Reward insurance will cover the costs, including damage to your vehicle, other vehicles, and any medical expenses.  

Second, getting caught without this insurance can result in heavy fines. It can also mean losing your license.  

In short, Hire and Reward insurance is not just a good idea, but a must for every courier. 

Goods in Transit Insurance 

Goods in Transit insurance is another necessary type of coverage. This courier insurance protects the goods you are carrying in case of theft, loss or damage. If something happens to the goods you are transporting, Goods in Transit insurance will cover the costs. 

As a courier, you are responsible for the goods you carry. An accident with a large claim can be ruinous for your business if you don’t have the right level of coverage. To prevent this, CX requires all couriers on the platform to have at least £5,000 in Goods in Transit insurance coverage.  

This courier insurance is especially important if you carry high-value items. But even if you transport everyday goods, you’ll still need it. Accidents and theft can happen at any time, but with Goods in Transit insurance, you have peace of mind.  

If you want to work in Europe, you’ll need additional cover. CMR insurance covers you for international transport, and is a legal requirement in many European countries. CMR insurance covers you for loss, damage, and delay of goods during international transport. Without it, you cannot legally transport goods across borders in Europe. 

Operator Licence 

If you plan to operate in Europe using a van with a maximum authorised mass (MAM) over 2.5 tonnes, you’ll need an Operator Licence.  

This licence is required for vehicles that carry goods for hire and reward. It shows that you meet the requirements for operating commercial vehicles according to EU standards.  

Getting an Operator Licence involves several steps.  

  • First, you need to prove you have the financial means to run a courier business. This means having enough funds to maintain your vehicles.  
  • Second, you need to show you have a good safety record. This includes regular vehicle checks and proper maintenance.  
  • Third, you must prove that you have the necessary professional competence. This usually involves passing a transport manager exam, hiring a certified transport manager for your business, or contracting an external certified transport manager. 

Once you have your Operator Licence, you need to keep it up to date. This involves regular checks, audits, and keeping accurate records of your operations. 

Choosing the courier insurance right provider 

Finding the right insurance can be a challenge. That’s where our recommended insurance partner, Business Choice Direct (BCD), comes in. They offer comprehensive insurance solutions for couriers, including Hire and Reward and Goods in Transit insurance.  

Our partnership with BCD means that all Courier Exchange members have access to their exclusive insurance products at competitive prices. BCD not only price-match on any like-for-like van policy, but also ensure that your cover is tailored to the specific needs of your business. 


As a courier, you need to protect yourself, your vehicle, and your cargo. Hire and Reward and Goods in Transit insurance are both essential for working in the UK. Couriers operating in and out of Europe also need CMR insurance and an Operator Licence. Having these protects you from financial loss and ensures you comply with legal requirements. 

For the best deals on courier insurance, get in touch with Business Choice Direct and get an exclusive rate for CX members. 

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