About $236 a month
Commercial auto, couriers
MoneyGeek 2026 estimate, couriers with 1–4 employees, September 2026
Trucking and transportation
Last-mile delivery insurance
For courier and last-mile operators running cargo vans, step vans and small box trucks on parcel, same-day and contracted shipper routes: coverage, costs and minimums.
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What similar businesses pay
- Commercial auto, couriers
- About $236 a month
- Workers’ comp, couriers
- About $463 a month
- General liability, couriers
- About $73 a month
Published benchmarks, not quotes. Your price depends on underwriting.
Cost
What last-mile delivery insurance costs
About $463 a month
Workers’ comp, couriers
MoneyGeek 2026 estimate, couriers with 1–4 employees, September 2026
About $73 a month
General liability, couriers
MoneyGeek 2026 estimate, $1M/$2M limits, couriers with 1–4 employees
$276 a month
New business auto policy
Progressive average for new business auto policies, 2025
Published prices for delivery businesses are thinner than for trucking, so compare several sources. MoneyGeek’s 2026 report modeled quotes from 10 insurers for courier businesses with one to four employees and limits of $1 million per occurrence and $2 million aggregate. Insureon reports that small businesses buying commercial auto through it pay an average of $245 a month (updated March 2026). Workers’ comp is often the largest bill once drivers are employees: Idaho’s 2026 rate for class 7231, parcel delivery and courier companies, is $5.716 per $100 of payroll, so $400,000 of driver payroll starts near $22,900 a year before any experience modification, as an illustration.
What moves your price
- Number of vans, their weight ratings and values
- Driver motor vehicle records, experience and turnover
- Limits and deductibles, often set by shipper or platform contracts
- Claims history, including cargo and misdelivery claims
- Where vans are garaged and the areas you deliver
- Driver payroll, which drives workers’ comp far more than office payroll
- Whether you cross state lines or carry high-value goods
Risks
The risks insurers price for
A low-speed crash on a residential route
A van clips a parked car or a mailbox while turning in a cul-de-sac, or scrapes a garage door while reversing. Route drivers make dozens or hundreds of stops a day, so small liability claims are frequent.
A driver hurt lifting at the 120th stop
BLS reports that couriers and messengers had 8.0 recordable injury and illness cases per 100 full-time workers in 2024, against 2.3 for private industry as a whole. Back strains, falls on steps and injuries climbing in and out of the cab are workers’ comp claims.
A serious crash on the road
BLS counted 950 deaths among driver/sales workers and truck drivers in 2024, a rate of 25.7 per 100,000 full-time workers against 3.3 for all workers. The courier industry recorded 56 fatal injuries that year.
Parcels stolen from an open van
A tote of electronics disappears from a van left open at a stop. Whether cargo coverage pays depends on the form; some cargo legal liability covers only fire, collision or striking of load.
A shipper charges back a misdelivery
Parcels left at the wrong address, late deliveries and missing items lead to chargebacks and claims. Insureon lists these among the claims errors and omissions coverage answers for delivery businesses.
A personal auto claim denied
Progressive notes that personal auto insurance typically doesn’t cover business use, and Insureon warns that a personal insurer may deny a claim from an accident on the way to pick up an order.
Coverage
Coverage to consider
Commercial auto liability
Pays for injuries and property damage your vans cause, from intersection crashes to a scraped garage door in reverse. Federal, state and shipper rules set the minimum.
How commercial auto works →Physical damage
Collision and comprehensive on the vans themselves, including theft and vandalism of a parked delivery vehicle.
How commercial auto works →Cargo or inland marine
Pays for parcels in your care. Marsh’s Amazon DSP program includes cargo legal liability of up to $25,000 for loss from fire, collision or striking of load, and Progressive points delivery businesses to inland marine for property in their care, custody and control.
Hired and non-owned auto
Covers a rented replacement van when a regular one is out of service, and your liability when drivers use personal cars for business. It does not repair the driver’s own car.
How commercial auto works →General liability
Covers injuries and damage at a customer’s premises that do not involve driving, such as a hand truck cracking a lobby floor. Amazon’s Hub Delivery program asks for $1 million per occurrence and $2 million aggregate.
How general liability works →Workers’ compensation
Covers drivers and helpers hurt lifting, falling on steps or getting in and out of the cab. Amazon’s Hub Delivery program asks for statutory workers’ comp where state law requires it plus $1 million employers liability.
How workers’ compensation works →Errors and omissions
Insureon lists claims over late or undelivered packages, items left at the wrong address and missing items among the risks this covers for delivery businesses.
How professional liability works →Rules
Requirements and filings
Federal minimums depend on vehicle weight and apply to for-hire carriers in interstate commerce, which must file proof of insurance with FMCSA under 49 CFR 387.301. A courier that never crosses a state line follows state rules, and shipper contracts usually set the real limits.
| Requirement | Applies to | What it means |
|---|---|---|
| 49 CFR 387.303 | For-hire interstate fleets made up only of vehicles under 10,001 lb | $300,000 minimum liability |
| 49 CFR 387.303 | For-hire interstate freight vehicles of 10,001 lb or more, general goods | $750,000 minimum liability |
| California Motor Carrier Permit (DMV MC 500 M) | For-hire property, including delivery services, in vehicles of 10,000 lb or less | Permit required and $300,000 minimum liability |
| California Motor Carrier Permit (DMV MC 500 M) | Property in vehicles of 10,001 lb or more | $750,000 minimum liability |
| Amazon Hub Delivery partner requirements | Hub Delivery partners | General liability of $1 million per occurrence and $2 million aggregate, statutory workers’ comp where state law requires it and $1 million employers liability |
| FedEx service provider agreements | FedEx contracted service providers | Auto and workers’ comp coverage consistent with the minimums in the provider’s agreement |
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Pay less
How to lower the cost
- Pull every driver’s motor vehicle record before they take a route and again each year; Insureon lists driving records among the main auto rating factors.
- Fit backup cameras and plan routes that reduce reversing in driveways and alleys.
- Keep your vehicle schedule current, adding and removing vans as they change so you do not pay for idle vehicles.
- Report payroll by class: Idaho rates clerical class 8810 at $0.117 per $100 of payroll against $5.716 for courier class 7231, so dispatch staff should not be rated as drivers.
- Lock vans at every stop and keep delivery photos to defend cargo and misdelivery claims.
- Raise physical damage deductibles on older vans you could afford to repair.
Before you start
What underwriters ask for
- Vehicle schedule with VINs, gross vehicle weight ratings, values and garaging addresses
- Driver list with license numbers, dates of birth, years of experience and annual turnover
- Shipper or platform contracts with their required limits and additional insured wording
- Stops per day, operating radius and any state lines you cross
- Whether you carry high-value or hazardous goods
- Payroll split between drivers, helpers, warehouse and office staff
- Loss runs from current and prior insurers
- Any USDOT number or state permit you hold
Common questions
Last-mile delivery insurance: questions
Does my personal auto policy cover package deliveries?
Usually not. Progressive says personal auto insurance typically doesn’t cover business use, and Insureon warns that a personal insurer may deny a claim from an accident while you are picking up an order.
Do cargo vans under 10,001 pounds need a federal insurance filing?
Only if you are a for-hire carrier in interstate commerce, in which case 49 CFR 387.303 sets a $300,000 minimum for a fleet of vehicles under 10,001 pounds. A courier that stays in one state follows state rules, such as California’s Motor Carrier Permit.
Does Amazon provide insurance for delivery partners?
For Hub Delivery partners, Amazon provides commercial auto with $1,000,000 per accident and general liability where state rules allow, though New York drivers are excluded from the auto coverage. Delivery Service Partners carry their own required coverages, and Marsh runs a program built around them.
Does cargo insurance cover packages stolen from my van?
It depends on the policy form. Marsh’s DSP cargo legal liability pays up to $25,000 for loss from fire, collision or striking of load, so confirm whether theft from an unattended vehicle is covered before relying on it.
Is workers’ comp required for delivery drivers?
Most states require it once you have employees, but the threshold and exemptions vary by state, so check with your state’s workers’ comp agency. Shipper contracts such as Amazon Hub Delivery also require it where state law does.
How do I cover drivers who use their own cars?
Hired and non-owned auto insurance covers your business’s liability when employees drive personal, leased or rented vehicles for work, according to Insureon. It does not repair the driver’s own car.
Who can compare delivery insurance quotes?
An independent broker that compares options from several insurers, such as Florin, can line up auto, cargo, general liability and workers’ comp quotes against the limits your shipper contract requires.
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Tell us about your business once. We compare options and a licensed agent follows up, usually the same day.
Sources (16)
- MoneyGeek: average courier business insurance cost (2026 report)
- Insureon: commercial auto insurance cost (updated March 2026)
- Progressive Commercial: how much is commercial auto insurance (2025 data)
- Idaho Industrial Commission: workers’ compensation rates effective January 1, 2026
- BLS: Couriers and messengers (NAICS 492), industry at a glance
- BLS: Employer-reported workplace injuries and illnesses, 2023–2024 (January 2026)
- BLS: Rate and number of fatal work injuries in selected occupations, 2024
- Progressive Commercial: delivery and courier insurance
- Insureon: delivery service and courier insurance
- Insureon: commercial auto insurance for delivery
- Marsh: Amazon DSP insurance program highlights (2026)
- eCFR: 49 CFR 387.301, surety bond, certificate of insurance or other securities
- eCFR: 49 CFR 387.303, minimum limits
- California DMV: Motor Carrier Permit handbook (MC 500 M)
- Amazon Hub Delivery: insurance requirements
- FedEx contracting: frequently asked questions
Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.