Are you considering becoming a self-employed delivery driver but wondering what type of insurance you will need? Working on your own schedule can be appealing as you can base your work around your life, which gives you more time to do the things you love.
It is easier than you might think, as there are plenty of options available to you, including working for some of the bigger courier companies such as Hermes or Amazon. Here is what you need to know regarding finding the correct insurance if you want to work as a self-employed delivery driver for Hermes or Amazon.
Insurance Requirements for Hermes
You can become a self employed courier for Hermes, which means you can work to your own route and schedule. Hermes states that their pay rates are negotiated, but you can earn between £10 and £15 an hour. You can even work for Hermes if you have no delivery driving experience, as they provide training.
Hermes also states that it is your responsibility to purchase your own appropriate vehicle insurance, if you do not find your own insurance, Hermes automatically opt you in to their own top-up courier insurance that will be charged on top of your usual car insurance, and they will charge you every day that you work.
Their own top up insurance is third party only, so there is a good chance you would be better off arranging your own insurance. If you are seeking your own insurance you will specifically need a courier policy, as your standard vehicle insurance will not be enough, which means you would be driving illegally if you started delivering parcels without the correct insurance.
A courier policy is different to a standard policy due to the higher risks that courier work entails. There is more mileage involved, as well as making multiple stops a day and potentially carrying valuable cargo. As well as covering your vehicle for courier work, you can also opt to purchase goods in transit insurance. This type of policy will also cover all of the goods and parcels in your vehicle for loss, theft and damage.
Insurance Requirements for Amazon
You can become a self employed courier driver for Amazon, which is referred to as Amazon Flex. The job is similar to Hermes as you can work to your own schedule and they state you can earn between £13 – £15 an hour. Amazon Flex will provide the hire and reward insurance top up for you, but you will need to have business class 3 insurance which you will need to acquire yourself.
This would mean you have unlimited long-distance travel, and your vehicle can be used for commercial purposes. This is the same type of insurance required by Hermes. When looking for insurance, you need to make sure your policy covers you for courier use. You will be required to sort out this insurance before you can start working for Amazon Flex.
The difference between insurance for employed and self-employed delivery drivers
Essentially, there is no difference. Whether you work as an employed or a self-employed delivery driver, you will still require the same type of insurance. The only difference will be your working experience, but when it comes to seeking out an insurance policy, you will still need the same type of insurance to be legally allowed to do courier work. The use of ‘top up’ insurance policies will be less frequent amongst the employed delivery drivers due to the set hours of work, but it may be more useful to a self employed driver who only works a limited amount of hours.