Hire and reward insurance is a class of van insurance that legally permits a vehicle to be used to carry other people’s goods for payment. It’s the policy that any UK man-and-van driver, courier, or removals operator must carry on their vehicle. Standard “social, domestic and pleasure” or “business use” insurance is not sufficient for paid haulage work, and using it for that purpose voids the cover entirely. Part VI of the Road Traffic Act 1988 sets out the compulsory vehicle-insurance requirements that apply to drivers in the UK.
What separates hire and reward from standard van insurance:
- The activity is recognised by the insurer. The policy explicitly allows carrying third-party goods for payment.
- The premiums are higher. Insurers price for the increased risk of frequent loading and unloading, varied destinations, and the legal exposure of carrying someone else’s possessions.
- Vehicle requirements may be stricter. Some insurers require alarms, immobilisers, specific overnight parking, or geographical limits.
Important: hire and reward only covers the vehicle, not the cargo. The driver also needs goods in transit insurance to cover the items being moved, and ideally public liability insurance for damage at either end. The three together form the legal-and-practical insurance baseline for legitimate UK man-and-van work.
How to verify a driver has hire and reward cover:
- Ask directly. A legitimate operator will confirm without hesitation.
- Request a copy of the certificate. Reputable drivers expect this and have it ready.
- Check the certificate covers the date of your move. Policies are annual. An out-of-date one is no cover at all.
Drivers operating without hire and reward cover are not insured for the work they’re doing, regardless of what they tell the customer. In the event of a road accident en route, the insurer will refuse to pay, leaving both the driver and the customer’s goods unprotected. It’s one of the clearest dividing lines between legitimate operators and rogue traders.