The types of insurance a courier business needs most include commercial auto, cargo, general liability and workers' compensation. We've summarized courier business insurance needs below along with recommended coverage amounts for each type.
What Insurance Do You Need For a Courier Business?
Courier businesses need commercial auto, cargo, general liability and workers' compensation coverage to operate legally and protect their finances.
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Updated: November 25, 2025
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Courier Business Insurance Requirements: Key Takeaways
Commercial auto insurance ranks as the top priority for courier businesses since drivers face constant road exposure and vehicle accidents generate the largest claims. (Read More)
State law and shipper contracts require courier businesses to carry workers' compensation, commercial auto and general liability coverage. (Read More)
Cargo insurance, hired and non-owned auto and professional liability aren't legally required but provide essential financial protection for delivery operations.
Stay compliant by requesting COIs immediately, confirming coverage meets platform requirements and updating all active clients before policy renewals. (Read More)
What Insurance Types Are Needed For a Courier Business?
Pays for vehicle damage, driver injuries and liability when courier vehicles are involved in accidents during deliveries. Also covers repairs to your vehicle, medical bills and damage you cause to other vehicles or property. | A $1 million combined single limit for liability with comprehensive and collision coverage suits most courier operations. High-volume fleets may need $2 million limits. | A courier driver ran a stop sign while rushing a delivery, colliding with another vehicle. The accident caused $28,000 in damage to both vehicles, $35,000 in medical bills for the other driver and $12,000 in injuries to the courier. Commercial auto covered the full $75,000 with a $1,000 deductible. | |
Cargo Insurance | Protects customer packages and goods from loss, theft or damage while in your possession during transport. Reimburses customers for shipments damaged in accidents, stolen from vehicles or destroyed by weather. | Most courier businesses need $25,000 to $50,000 in cargo coverage. Operations handling high-value items like electronics or medical supplies may need $100,000 or more. | A courier's van was broken into overnight, and thieves stole $18,000 worth of electronics shipments awaiting morning delivery. The customer demanded full reimbursement, and the courier faced contract termination. Cargo insurance covered the $18,000 loss and preserved the client relationship. |
Handles third-party bodily injury and property damage claims that occur outside vehicle accidents, such as injuries at pickup or delivery locations. Pays medical bills and legal costs when someone is hurt or property is damaged during courier operations. | A $1 million per occurrence and $2 million aggregate policy meets most contract requirements. High-volume commercial clients may require $3 million in total coverage. | A courier knocked over a display case while picking up packages from a retail store, causing $8,500 in merchandise damage and $4,200 in fixture repairs. The store owner demanded payment before allowing future pickups. General liability covered the $12,700 in damages. | |
Pays medical costs and lost wages when courier drivers suffer work-related injuries from vehicle accidents, lifting heavy packages or slip-and-falls during deliveries. Applies regardless of fault and protects your business from employee lawsuits. | Coverage minimums are set by your state based on payroll and employee count. Most states require coverage once you hire your first employee. | While loading packages, a driver herniated a disc lifting a 70-pound package into a delivery van. Surgery, physical therapy and 6 weeks off work totaled $52,000 in medical bills and $9,600 in lost wages. Workers' comp covered all $61,600, protecting both driver and business. | |
Hired and Non-Owned Auto Insurance | Fills gaps when employees or contractors use personal vehicles for courier deliveries. Your commercial auto policy won't cover accidents in vehicles you don't own, leaving exposure when drivers use their own cars. | A $1 million liability limit aligns with standard commercial auto coverage. Expect to pay $300 to $600 annually for small courier operations. | A contractor using their personal car for deliveries rear-ended another vehicle, causing $22,000 in damage and $15,000 in medical bills. The contractor's personal auto policy denied the claim because they were working. Hired and non-owned auto covered the $37,000 in damages. |
Reimburses financial losses your clients suffer due to late, failed or mishandled deliveries. Pays breach of contract claims when time-sensitive shipments don't arrive as promised. | A $500,000 to $1 million policy covers most small courier operations. Couriers handling legal documents or medical specimens may need higher limits. | Legal documents went to the wrong address, causing a client to miss a court filing deadline. The client sued for $45,000 in damages from the missed deadline plus $8,000 in legal fees to refile. Professional liability covered the $53,000 claim. | |
Courier Business Insurance Requirements
The table below summarizes business insurance requirements for courier companies by state law and client contracts. Requirements vary by state, the types of clients you serve and the contracts you sign. Review your specific contracts and state regulations to confirm which coverages apply to your operation.
Workers' Compensation Insurance | Required by law in most states once you hire your first employee. Penalties for non-compliance include fines up to $10,000 per employee, criminal charges, business license suspension and personal liability for all injury costs. | Coverage minimums are set by your state based on payroll and number of employees. |
Commercial Auto Insurance | 49 states require commercial auto insurance for all business-owned vehicles, and personal auto policies don't satisfy state law for commercial use. Vehicles over 10,001 pounds or those crossing state lines must also meet Federal Motor Carrier Safety Administration minimums. | State minimums range from 25/50/10 to 30/60/25 liability limits. FMCSA requirements range from $300,000 to $750,000 depending on vehicle weight and cargo type. |
General Liability Insurance | E-commerce platforms, retailers and commercial shippers require this coverage before allowing couriers to handle their packages. Some municipalities also require general liability for business licensing. | The industry standard requirement is $1 million per occurrence and $2 million aggregate. Enterprise clients and large retailers may require $3 million to $5 million in total coverage. |
Cargo Insurance | Most shipper contracts require couriers to carry cargo coverage protecting goods in transit. Contracts specify minimum coverage amounts based on the value of shipments you'll handle. | Standard requirements range from $25,000 to $50,000 for general deliveries. Couriers handling electronics, pharmaceuticals or high-value goods may need $100,000 or more per contract terms. |
Large retailers, logistics companies and enterprise clients often require umbrella coverage as an add-on to your existing liability limits. This protects shippers from catastrophic losses exceeding your primary policy limits. | High-value commercial clients require $1 million to $3 million in umbrella coverage. Premium logistics contracts may require $5 million or more. | |
How To Ensure Courier Business Insurance Requirements Are Met
Below is a step-by-step guide to satisfying courier business insurance requirements and maintaining required coverage over time after buying your policy.
- 1Request Certificates of Insurance from your provider
After purchasing your courier insurance policies, immediately request a Certificate of Insurance from each provider showing your commercial auto, cargo and liability coverage. Most insurers deliver COIs within minutes through online portals, which lets you onboard with delivery platforms or respond to shipper requests the same day.
- 2Confirm your policy details match contract requirements
Review your issued policy against each platform's and shipper's specific requirements, checking that liability limits, cargo coverage amounts and vehicle counts match what contracts demand. Amazon Delivery Service Partners require $1 million auto liability, while retail chains may require $2 million general liability. Confirm your policy meets or exceeds each client's minimums before submitting proof.
- 3Add shippers as additional insureds when contracts require
Many retail chains and enterprise shippers require being listed as additional insured on your general liability policy before you can handle their packages. Contact your insurer to add this endorsement, which typically costs $25 to $50 per addition and takes 1 to 3 business days to process.
- 4Submit proof of insurance to platforms, shippers and licensing authorities
Upload COIs to delivery platform portals like Amazon Flex, Uber Freight or retail vendor management systems where automated verification checks coverage status. For enterprise clients, submit directly to logistics coordinators or risk management departments, and provide copies to your state's Department of Motor Vehicles if required for commercial vehicle registration.
- 5Set renewal reminders and update documentation proactively
Create calendar alerts 45 to 60 days before each policy expires to allow time for renewal, updated COIs and resubmission to all active clients. Delivery platforms automatically deactivate courier accounts when coverage lapses. Even a 1-day gap can cost you active contracts and require re-onboarding.
Get Business Insurance You Need For Your Courier Business
Use our matching tool below to find insurers experienced in courier business insurance. We recommend comparing quotes from multiple providers and evaluating their cargo limits, commercial auto options and claims handling reputation to find the right fit for your delivery operation.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.