Hire and reward insurance is vehicle insurance whose cover includes carrying other people’s goods, or passengers, for payment. Man and van drivers, couriers and delivery drivers need a policy that covers that use, because a standard van or car policy only covers the uses listed on it.
You’ll also see it written as hire or reward. That’s the wording the law itself uses, and it means the same thing.
Who needs hire and reward insurance?
Anyone who is paid to carry goods or people that aren’t their own. In practice that includes:
- man and van drivers and removals firms
- couriers and multi-drop parcel drivers
- takeaway and grocery delivery drivers
- taxi and private hire drivers carrying paying passengers
Carrying your own tools or stock to a job is a different thing. That’s business use, not hire and reward, because nobody is paying you to move it.
Is hire and reward insurance a legal requirement?
The law requires insurance that covers the way the vehicle is being used. Under section 143 of the Road Traffic Act 1988, you must not use a vehicle on a road unless there’s a policy in force for that use. So if you’re paid to carry someone else’s things, the policy has to include it.
Driving without the right cover counts as driving uninsured. GOV.UK says that can mean a £300 fixed penalty and 6 penalty points, or an unlimited fine and disqualification if it goes to court, and the police can seize the vehicle.
How is it different from other van insurance?
Insurers sell cover by class of use. Social, domestic and pleasure covers personal trips. Commuting and business use add travel to work and driving as part of your job. Hire and reward is for when carrying goods or passengers is the paid job itself, which is what a man and van does.
Hire and reward car insurance
The same rule applies to cars. If a car is used to carry paying passengers or to make paid deliveries, the policy has to cover that use, just as it would for a van. A car insured only for social, domestic and pleasure use isn’t covered while it’s doing paid work, so delivery and private hire drivers need cover that names it.
What doesn’t it cover?
Hire and reward cover is about the vehicle and liability on the road. It isn’t cover for the load: section 145 of the Road Traffic Act says compulsory motor insurance doesn’t have to cover damage to goods carried for hire or reward. That’s the job of goods in transit insurance, and damage to property at either end is covered by public liability insurance. Neither of those is a legal requirement, but both matter to a customer.
Does a man and van need an operator licence too?
Not usually. GOV.UK says you need a goods vehicle operator licence for vehicles over 3,500kg gross plated weight, so most man and van work in the UK doesn’t need one. Our guide to the operator’s licence has more detail.
If you already run a van with hire and reward cover and want more local jobs, you can become a driver with The Van Man Co.
Checking a driver’s cover
With The Van Man Co, drivers are independent and insurance cover varies from driver to driver. If cover matters for what you’re moving, ask the driver what they hold. Our guide on whether a man and van is insured explains what to look for, and you can get an estimate for a driver in Bournemouth, or wherever you’re moving.
Frequently asked questions
Do man and van drivers need hire and reward insurance?
Yes. A man and van driver is paid to carry other people’s belongings, so the van’s policy has to cover hire and reward use. Without it, the driver is treated as uninsured for that job.
Does hire and reward insurance cover the goods being moved?
No. It covers the vehicle and liability on the road. Damage to the load is covered by goods in transit insurance, which is a separate policy.
Is hire and reward the same as business use?
No. Business use covers driving as part of your work, such as visiting clients or carrying your own tools. Hire and reward is for when carrying goods or passengers is the paid job itself.