The delivery service sector in the UK continues to grow rapidly, driven in part by increasing consumer demand for fast and reliable parcel delivery.1 As the industry grows, it brings a variety of operational risks, which can occasionally lead to insurance claims.
Reflecting on 2025, we assisted clients with 743 claims − which is a 42% reduction in the number of claims made in 2024. In the period between 2023 and 2025, three types of insurance claims stood out as the most common challenges faced by DSPs we arrange cover for:
- Damage caused to vehicles when manoeuvring
- Road risks
- Third party fault claims
Understanding these claims and implementing risk management strategies can help you to avoid them, helping to protect your business, reduce costs and maintain a positive reputation.
1. Damage caused to vehicles when manoeuvring
In the period between 2023 and 2025, 65% of insurance claims were for damage caused by manoeuvring − such as hitting parked vehicles, and damage caused while reversing and hitting property. We understand delivery vehicles may have significant blind spots and often operate in tight areas, congested residential streets and busy loading bays. This can increase the risk of collisions with stationary objects, other vehicles or buildings when reversing, turning or parking.
Practical steps to take:
- Use of technology: Many vehicles are equipped with reversing cameras, proximity sensors and blind spot detection systems to improve driver visibility, therefore, drivers use of these aides are paramount to reducing incidents.
- Safe operating procedures: Enforce clear protocols for manoeuvring, where possible using spotters in tight spaces can be an effective tactic. As this is a football World Cup year, why not use a simple metaphor and ask your drivers to “Drive for GOAL” – so they “Get Out and Look” before reversing or manoeuvring into tight spaces.
- Maintain vehicles: Regularly inspect and maintain safety equipment such as mirrors and sensors.
2. Road risks
Road risks include collisions with other vehicles, such as driving into the back of another vehicle or pulling out in front of a vehicle. Delivery drivers are often under pressure from tight schedules, which can lead to rushed or distracted driving. Fatigue and adverse weather conditions can also increase accident risk.
Practical steps to take:
- Promote a safe driving culture: Encourage drivers to prioritise safety over speed. Try to avoid unrealistic targets that can lead to risky behaviour. Manage driver hours and encourage people to take breaks, which can help avoid employees driving when tired.
- Monitor drivers: Use telematics and GPS tracking to monitor driving behaviour, identify risky patterns and provide relevant training when required.
- Provide awareness training: Provide relevant training including useful information such as sharing the road safely with cyclists and pedestrians, understanding blind spots and safe overtaking distances.
- Vehicle safety features: Where possible, use vehicles fitted with advanced safety technologies such as automatic emergency braking, lane departure warnings and pedestrian detection systems.
3. Third party fault claims
Not all claims are the delivery driver’s fault. In the period between 2023 and 2025, 16% of the claims we handled were the fault of someone else. Third party claims can include negligence, such as other drivers causing accidents, false or exaggerated claims, and injuries or property damage caused by parcels left in unsafe places.
Practical steps to take:
- Document incidents: Educate drivers to document incidents thoroughly, including photos, witness details and police reports where applicable, to support your case in third-party claims.
- Check insurance cover: Ensure your insurances cover third-party liability, including public liability and goods in transit.
- Fraud prevention measures: Work with insurers to identify and challenge fraudulent claims promptly.
Comprehensive DSP insurance
Although managing operational processes are crucial to maximise efficiency, securing appropriate insurance is just as essential. DSPs need to consistently assess their insurance policies to confirm they adequately protect against a wide range of risks, such as vehicle damage, third-party liability, and public liability. Taking a proactive approach to risk management by integrating technology, establishing clear procedures, and following strong insurance advice helps to decrease both the number and impact of claims. This approach not only helps to lower insurance risk and hopefully reduce your premiums over time but also safeguards your business and its reputation.
Talk to an insurance expert today
Find out more about the insurance solutions we can offer DSPs by speaking to someone in our dedicated team. Simply call 0330 912 5023, email UKDSP@marsh.com, or get in touch using our contact form.
Source
1. store.mintel.com/report/uk-courier-express-delivery-market-report
