Hire and Reward Insurance: What You Need to Know

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Written by Michael Foote, Insurance and Finance Expert

Michael Foote is the founder of Quote Goat and has over 13 years experience working in the finance, insurance and currency sectors. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city for a number of firms including HSBC.

If you’re a courier, chauffeur, taxi driver or anyone else who uses a vehicle to transport passengers or their property in return for payment, then it’s a legal requirement for you to have hire and reward insurance.

Depending on the type of service you provide, you may need a specific type of additional cover. For instance, there are specialist taxi insurance and courier insurance policies and in many cases it’s a legal requirement to have this cover, so it’s essential you know the type of policy you need.

To help you make an informed decision on your insurance policy and to make sure you get the correct cover, here are the main things you need to know about hire and reward insurance.

Who needs hire and reward insurance?

There are specific circumstances where you’ll need to have hire and reward insurance. These include carrying paying customers (taxi services), couriering goods between business sites (haulage), transporting goods to customers (food delivery, couriers) and taking goods from customers to a business site. If your work falls under any of these categories, then you will need hire and reward insurance.

Why you need hire and reward insurance

If you’re transporting people or goods in your vehicle, in the event of an accident you won’t be covered unless you have hire and reward insurance. This is why it’s a legal requirement. If you’re working as a courier or a hauler, you could be prosecuted and fined if you don’t have hire and reward insurance, so always make sure you have adequate cover or you could end up in hot water with the authorities.

Different types of policies

As we’ve already pointed out, the type of cover you get could differ depending on the nature of your work. For instance, if you’re a long-haul lorry driver then the day-to-day duties of your profession will be vastly different to those of say a minicab driver, so naturally your insurance policy will reflect that.

If you work in the removals industry, you’ll need to make sure you’re covered in case any damage occurs to your customers’ belongings, otherwise you could end up with a large bill or legal action being taken against you. Having hire and reward insurance doesn’t mean you’re covered for the possessions you’re transporting – for that you’ll need an additional cover.

How hire and reward insurance works

When you compare hire and reward insurance, you’ll be asked a range of questions that will determine the type of cover you require. Among others, these questions will include the nature of your work, how many miles you cover and what areas of the country you operate in. Once you’ve submitted your details, the insurance companies will offer you a choice of policies that meet your requirements.

With Quote Goat, you can compare hire and reward insurance quotes from many of the industry’s leading providers. To see if you could save, head over to our comparison page now.