What Income Protection Insurance Won’t Cover as an Independent Courier

Workplace injuries are a significant risk, with over 50,000 Australians in transport, postal and warehousing roles injured on the job each year. And for independent couriers, just one incident can mean weeks—or even months—without income.

That’s why income protection is absolutely essential for independent couriers. But while it’s a valuable safety net, it’s not a catch-all solution. There are key exclusions that could leave you without cover when you need it most.

Keep reading for a full breakdown of what income protection does not cover, why those gaps matter for independent couriers, and how you can ensure you’ve got the right level of protection in place.

What is income protection insurance?

If an injury or illness keeps you from working, income insurance replaces a portion of your income while you recover. For independent couriers, this means you can continue to pay your living expenses even if you’re temporarily out of action.

Typically, income protection covers a percentage of your usual earnings, providing ongoing payments to help ease the financial strain during your recovery. However, it’s important to note that income protection only covers your lost income. It doesn’t address other financial concerns like vehicle damage or goods damaged in transit. To protect against these types of risks, you’ll need additional coverage, such as Courier Insurance or Business Insurance.

What income protection does not cover

Although income protection insurance can be a lifeline in the event of an injury or illness, there are some common exclusions that independent couriers should be aware of. Here are the most common gaps you may encounter in your cover:

1. Pre-existing conditions

Many income protection policies won’t cover conditions that existed before you took out the policy. If you have a pre-existing injury—a back injury from years of lifting, for example—it may not be covered unless you specifically disclose it during your application.

2. Workplace accidents or injuries

Income protection insurance can cover you if you’re injured while working—but only under certain conditions. In most cases, if you’re doing your regular courier work and following the rules of the road, you should be covered.

However, there are situations where your policy may not cover you. For example, if you’re injured while driving without a valid licence, operating a vehicle under the influence of alcohol or drugs, or engaging in other forms of reckless or illegal behaviour, your claim may be denied.

3. Self-inflicted injuries or intentional harm

If you intentionally injure yourself or act recklessly—like ignoring road safety rules—your income protection may not cover the loss of income during your recovery. Most policies don’t cover situations where the injury could have been avoided with reasonable care.

4. Inability to work due to business interruption

Income protection insurance typically doesn’t cover losses from business interruptions that are unrelated to health or injury. For example, if a courier business suffers financially due to road closures or disruptions in the shipping supply chain, this won’t be covered under your income protection policy.

5. Limited mental health coverage

While some policies do include coverage for mental health conditions such as depression or anxiety, many only provide partial coverage or impose waiting periods before claims can be made. The mental health conditions must also be severe enough to impact your ability to work full-time—and some policies may not offer the level of cover you need.

6. Short-term disabilities

Income protection insurance usually requires you to be unable to work for a certain period before payments begin. For example, if you’re only off work for a couple of weeks due to a minor injury, this may not be covered, as most policies have waiting periods of around 30 days or more.

Other types of insurance for couriers to consider

Income protection insurance is essential, but it may not cover everything you need as an independent courier. To make sure you have complete financial protection, consider these additional policies:

• Personal Accident Insurance: This can cover specific injuries that occur while you’re working. For example, if you fall off your bike or have an accident while loading goods, this policy will help cover the costs of treatment and loss of income while you recover.
• Business Interruption Insurance: This policy covers loss of income due to factors beyond your control, such as equipment breakdown or transportation issues that prevent you from working.
• Critical Illness Insurance: If you’re diagnosed with a serious condition—cancer, heart disease or stroke, for example—Critical Illness Insurance provides a lump sum payout to help cover your recovery or any ongoing costs. This can supplement income protection insurance and provide extra peace of mind.
• Accidental Death Insurance: If the worst happens and you’re involved in a fatal accident, this policy will pay out a lump sum to your beneficiaries. It makes sure that your loved ones won’t face financial hardship if you’re no longer around to provide for them.

Don’t let gaps in your policy catch you out

Income protection can be a lifeline when you’re unable to work. But if your policy doesn’t cover the specific risks you face as a courier, it could leave you exposed.

That’s where GSK Insurance Brokers can help. With decades of experience working with couriers, freight carriers and self-employed drivers, we know the challenges you face and the coverage that makes a real difference when it counts.

Our expert team will work with you to identify any gaps in your protection and recommend tailored insurance solutions that fit your business, budget and lifestyle. Get in touch today for a free quote and make sure your income—and your future—are fully protected.