Courier & Delivery Coverage Guide
High-frequency auto exposure (multiple stops/day in congested areas), 1099 driver gig-economy reclassification risk, and cargo theft drive courier insurance pricing. Many fleets need hired/non-owned auto for contractor drivers.
Critical Coverage
General Liability
Covers third-party bodily injury and property damage claims
What it covers
Slip/fall by recipients, property damage during delivery (door damage), advertising injury.
Common misconception
Couriers think auto covers everything. GL covers customer property damage at delivery (door, fence, landscaping).
What it does NOT cover
Auto-related claims. Cargo. Employment.
The gap — what happens without it
Driver damages garage door while reversing — $4K repair. GL pays.
What drives your premium
Revenue, vehicle count, claims
Endorsements to ask about
Care/custody/control rider. Hired/non-owned auto.
Workers' Compensation
Covers employee injuries and illnesses on the job
What it covers
Driver injuries, lifting injuries from packages, slip/fall during deliveries.
Common misconception
1099 driver classification is a hot enforcement area — state labor commissioners reclassify drivers as employees regularly, triggering WC back-premium and penalties.
What it does NOT cover
Owner exemption. Drug/alcohol.
The gap — what happens without it
Driver back injury lifting a heavy package — $24K. WC pays.
What drives your premium
Payroll, class code 7219, state, claims
Endorsements to ask about
All-states. 1099 reclassification rider where available.
Commercial Auto
Covers vehicles used for business purposes
What it covers
Liability and physical damage on delivery vehicles. Couriers have the highest auto-loss frequency in commercial transportation due to multiple stops/day in congested areas.
Common misconception
Single-vehicle couriers think personal auto suffices. Personal auto excludes 'delivery' as a class of business use.
What it does NOT cover
Off-policy vehicles. Cargo (need motor truck cargo). 1099 driver personal vehicles.
The gap — what happens without it
Driver runs red light, T-bones a vehicle — $185K injury. Commercial auto pays. Personal auto would have denied.
What drives your premium
Vehicle count, MVRs, radius, claims
Endorsements to ask about
Hired/non-owned auto. Cargo coverage. Rental reimbursement.
Important Coverage
Commercial Umbrella
Extends limits above your primary policies
What it covers
Excess over auto/GL/EL. Severe auto claims regularly exceed $1M.
Common misconception
Couriers think $1M is enough. Multi-vehicle accidents push past quickly.
What it does NOT cover
Punitive (some).
The gap — what happens without it
Accident causes $3M in injuries — $1M auto + $2M umbrella pays.
What drives your premium
Underlying, fleet, claims
Endorsements to ask about
Follow-form.
Inland Marine (Tools & Equipment)
Covers tools, equipment, and materials in transit or at job sites
What it covers
Cargo/motor truck cargo coverage for packages and goods in transit.
Common misconception
Auto policy doesn't cover cargo. Motor truck cargo or inland marine is required.
What it does NOT cover
Mysterious disappearance. High-value items not declared.
The gap — what happens without it
Theft from a parked van: $14K of customer goods. Cargo coverage pays.
What drives your premium
Cargo value, type, claims
Endorsements to ask about
Refrigerated cargo if applicable. High-value goods.
Not sure what you need?
Text us your trade and state — we'll tell you exactly what coverages apply to your business and shop the market for the best rate.