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.
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.
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.
Checking a driver’s cover
With The Van Man Co, drivers are independent and insurance cover varies from driver to driver. You can check a specific driver’s cover after you’ve made a booking request and before the deposit is charged. Our guide on whether a man and van is insured explains what to look for, and you can get an estimate on our Bristol man and van page.