Hire and Reward Insurance

Compare Hire and Reward Insurance

What is hire and reward insurance?

Hire and reward insurance provides cover for drivers who work either full-time or part-time delivering parcels or food. Standard motor insurance does not cover this type of activity, so a specialist hire and reward policy is required. Depending on the level of cover purchased, hire and reward insurance for food delivery drivers or parcel delivery drivers can cover the driver, his vehicle, third parties and their property.

Is hire and reward insurance mandatory for courier companies?

It won’t come as a surprise that motor insurance is mandatory in the UK – but your standard car, van or motorbike insurance policy won’t cover you while you’re using that vehicle for courier work. If you were to reply on your standard motor insurance for these courier journeys you would actually be driving without insurance, which means hire and reward insurance is just as mandatory for couriers as standard motor insurance is for private vehicle owners.

Why is hire and reward insurance important for delivery drivers?

Hire and reward insurance is very important for delivery drivers because it provides additional cover for the risks involved with making deliveries. It is crucial for delivery drivers to take the necessary time to clearly understand their risks and needs for insurance. Not having the correct types of cover or insufficient levels of cover has the potential to be financially devastating.

What does hire and reward insurance cover?

Hire and reward insurance is a type of policy designed for businesses or individuals to cover the specific risks relating to courier services, private hire drivers and taxi drivers.

Specific cover can include:

• Business interruption cover that covers loss of income due to an accident.
• Passenger liability covers your passengers for any injuries sustained in an accident.
• Third-party liability would cover any third-party vehicles, property or people who sustain damage or injury as a result of an accident.
• Comprehensive cover provides for protection from damage of your vehicle caused by vandalism, theft or fire.

How much does hire and reward insurance cost?

Hire and reward courier vehicle insurance is for good reason usually more expensive than standard personal car insurance as it covers the additional risk factors such as driving during busy periods to multiple locations in a short timeframe.

How much is hire and reward insurance depends on amongst others the following:

• The hours you work and the location you work in.
• The level of cover you require.
• The size of the excess you are willing to pay.
• Your personal driving history and type of vehicle you want to insure.

Can I take out hire and reward insurance for food delivery?

Yes, you can take out comprehensive hire and reward insurance for food delivery to protect your business if you are operating a business that delivers food for hire and reward. It is important to shop around and look at the details of each insurer’s provisions as types and levels of cover can vary from insurer to insurer.

What factors affect the cost of hire and reward insurance?

There are any number of factors that can affect the hire and reward courier insurance cost:

• Your personal driving record and history including age and experience.
• The number of cars and the type of roads in the area you intend to operate in.
• The delivery types and time frame in which deliveries must take place have an effect on performance so will also affect insurance costs.
• Working hours or length of shifts will also have an influence on costs as longer hours could lead to higher risks due to fatigue and loss of concentration.
• Longer distances traveled will also increase the chances of accidents so annual mileage and the resulting wear and tear will also be a factor in determining costs.
• The value of your excess (the amount of money you pay when claiming) will also affect the cost of your insurance policy.
• The type of car you want to insure will impact the cost, factors like size, age, environmental impact, and condition will also influence the cost.

How do I choose the right hire and reward insurance policy?

To choose the best insurance for hire and reward, you should look for a comprehensive policy that includes:

• Goods in transit insurance for those delivering potentially costly parcels as it covers them against theft, loss or damage.
• Public liability insurance covers you if you accidentally injure or kill a third party or damage their property.
• Personal accident insurance will cover your lost income and medical costs in the event of an accidental injury while working.

Annual, temporary, top-up or pay as you go: which hire and reward option fits?

The right option depends on how often you deliver. Top up hire and reward insurance, for example, only works if you already have a private policy. Here is how the main types compare.

Hire and reward on your own car or van versus a company vehicle

If you deliver in a vehicle you own or lease yourself, arranging hire and reward cover is your job. That applies to cars, vans and motorbikes alike.

If the delivery firm supplies the vehicle, the firm normally insures it. You will usually be a named driver or covered by an any driver policy. Ask for written confirmation before you start your first round.

Running several vans yourself? A fleet policy can put every vehicle on one renewal date.

Your checklist for a hire and reward insurance quote

• Licence number and the date you passed your test
• Registration of the vehicle you will deliver in
• The platforms or firms you deliver for
• Average hours a week, and whether you work nights
• Whether you need personal use on the same policy
• Claims and convictions from the last five years

Hire and reward for goods versus hire and reward for passengers

Hire and reward is a class of use for both paid goods and paid passengers. That is why taxi and private hire policies use the term too, and why passenger liability appears in some cover lists.

A delivery policy is written for goods such as parcels and food, so it will not cover a passenger fare. Taxi and private hire work needs taxi insurance, so pick the one that matches your work.

Delivering into Europe with a van over 2,500kg

Most UK couriers stay at home, but cross-border work brings extra rules. You need a standard international operator’s licence to carry other people’s goods for hire or reward in Europe in a van over 2,500kg maximum authorised mass (GOV.UK).

Your insurer also needs to know, as some hire and reward policies cover UK work only.

The comparison behind Tiger.co.uk is run by Seopa Ltd, FCA number 313860, and only FCA-authorised insurers sit on its panel. More than three million people compare cover this way, and one form lines up quotes for delivery work.

Ian Wilson, Managing Director at Tiger.co.uk, says: “Read the certificate, not the sales page. If the class of use does not mention hire and reward, or carriage of goods for payment, you are not covered to deliver.”

Two neighbours worth a look: goods in transit insurance for the load and breakdown cover for the vehicle. Back to the courier insurance hub.

Does hire and reward work the same way on a van as on a car?

The class of use is the same: it covers carrying goods for payment. Van policies are more likely to offer extras such as goods in transit or any driver cover, so compare those if you deliver in a van.

Is top-up hire and reward the same as a full policy?

No. A top-up covers only your delivery work and usually needs a private policy running alongside it. A full policy covers both under one certificate. Check which one a quote is before you buy.

Get hire and reward quotes on Tiger.co.uk in a few minutes. Policies differ in what they include, so read the class of use and excess before you choose.