Hire and Reward Insurance

Hire and reward insurance, sometimes referred to as ‘class 3 business insurance’ or  ‘carriage of goods for hire and reward’ is a type of courier insurance. It’s a specific type of insurance that covers you if you transport items or make a number of deliveries to different people within a particular area – for instance if you’re a furniture remover or courier. Hire and reward delivery insurance isn’t the same as haulage insurance although it’s easy to confuse the two. Haulage insurance is only suitable if you’re covering long distances making one or two deliveries, like HGV driver insurance travelling across the UK or Europe. With trends showing the demand for various forms of delivery drivers continuing to increase in the wake of the pandemic, thousands of motorists across the UK are seeking to cash in on the trend. With all these additional drivers looking to make a side hustle out of delivering merchandise and passengers, there is naturally an increase in invalid insurance claims. The reason for this is that unfortunately, many drivers assume their standard vehicle insurance for day-to-day driving is sufficient coverage for making deliveries for payment. These drivers are stung by insurance invalidations when their vehicles are damaged or cause damage in the event of an accident due to not disclosing their new part-time job. Many drivers do not realise that their current insurance policy will only cover them for personal use and not business-related activities, leaving them uninsured in the event of an accident. Due to this it is paramount that you secure the correct insurance before getting behind the wheel for any business-related activities.

In short – yes, there are forms of hire and reward insurance for food delivery, since you will be making food deliveries for payment this brings it under the criteria for hire and reward insurance. If you are planning on becoming a food delivery driver in the UK you will need to have some form of specialised coverage for the time you are making deliveries. This coverage will need to specifically insure deliveries and cannot just simply be your standard insurance policy which you use for your regular day-to-day driving. With this said you’ll also need to retain your standard insurance policy for when you aren’t making deliveries, this is to cover you for when you are driving whilst not working. Like with all road vehicles in the UK, this will need to be a minimum of third-party coverage to meet the legal requirements. However, remember that insurers set their own terms and conditions so it’s a good idea to double-check that fast food or takeaway delivery is covered under their specific hire and reward policy. Some providers don’t automatically cover food deliveries which could be down to the perceived increased risk of driving, mainly at night. If you’re in any doubt over a hire and reward policy will offer you the necessary protection, it’s always best to ask the insurer just to be on the safe side.

Yes, although hire and reward car insurance is one of the most popular types, you can take out this type of policy for other vehicles too. Motorbike couriers can take out motorbike hire and reward insurance, for instance, while delivery drivers who use a van can take out van hire and reward insurance. Essentially the vehicle you use will not change the type of insurance coverage you need but it will impact your risk profile with the insurer. For example an electric van would be more costly to repair than a standard delivery scooter, so you can expect to pay more for a hire and reward policy covering an electric van.

When it comes to comparing quotes, it’s vital that any policy you choose covers your needs. If it doesn’t, you could find yourself footing the bill for expensive repairs and covering the cost of damaged goods. While price is undoubtedly an important part of choosing a policy, it shouldn’t necessarily be the overriding factor when you’re trying to compare hire and reward insurance. Cheaper policies may have more exclusions or limitations which could mean you need to add on the protection you need – increasing the cost. On the other hand, more expensive policies might already include everything you need, in which case, they could represent better value for money.

As with other forms of insurance, you will need to enter some basic details about yourself, your delivery vehicle and the type of cover you wish to take out. This can be done in a few moments and will give you a wide variety of policies, removing the need to manually search between individual provider sites. You should also ensure that all the relevant information given on your policy is up to date and correct. Failing to provide this could lead to your insurance being made invalid when you need to make a claim, leaving you out of pocket. Always check the documentation of a policy before buying to ensure you are getting the correct level of coverage for your needs. Compare hire and reward insurance

The best way to make sure you have the cheapest insurance policy, whether it be for a taxi, food courier or parcel delivery, is to compare multiple insurers and not let your policy auto-renew when possible. By allowing for auto-renewals you may be missing out on cheaper alternatives on the market and so limiting your savings potential.