Hire and reward is a type of insurance policy which is a must have for many businesses that have fleets.
At FleetCover, we cover a wide range of different fleets, tailoring specific policies to suit a variety of different needs.
What is hire and reward insurance for fleets?
Hire and reward insurance is a type of insurance that allows you to carry passengers, parcels or goods in return for payment.
Hire and reward insurance policies for fleets are built for businesses with three or more vehicles.
What does hire and reward insurance cover?
This type of insurance is known as class 3 insurance and it covers drivers operating as:
- Delivery drivers
- Courier drivers
- Taxis and chauffeurs
- Funeral cars
- Anyone else who carries people or property for a fee
Instances when you will be covered by hire and reward insurance include being involved in an accident, having your vehicle stolen and any personal injuries.
Hire and reward premiums may reflect the additional risks drivers may face, such as long driving hours, unfamiliar roads, and time critical deliveries.
How does hire and reward insurance work?
Hire and reward insurance covers your vehicle while you’re using it. Like traditional insurance policies, it will protect your vehicle in the event of an accident. It also comes in the usual three levels of insurance:
- Third party fire and theft
- Third party only
If you opt for a hire and reward policy, you should be covered by that policy at all times, whether you’re driving for work or not, providing the policy covers Social, Domestic and Pleasure use too.
This type of policy will usually cover your last mile work driving, as well as your personal driving.
Do I legally need hire and reward insurance?
Yes, hire and reward insurance is a legal requirement for anyone who carries passengers or other peoples goods in return for payment.
If you only carry your own goods as part of your business, you are unlikely to need hire and reward insurance even if you deliver your own goods to your clients. It is worth checking with your broker though.
Hire and reward cover for vans
To use your van for delivery and courier purposes, you must have hire and reward insurance in place. This is sometimes referred to as haulage insurance or courier insurance.
Hire and reward on your vans that are used for transporting goods will cover them for travelling from A to B for a fee. However, there are many different types of companies operating within this field, from those that do just a few drop offs a day to those who will carry out hundreds of drop offs a day.
Do couriers need hire and reward insurance?
Hire and reward is a vital insurance policy for a variety of different professions, including couriers, removal companies and taxi drivers.
Without the right level of courier insurance in place, it could cost thousands of pounds to replace your vehicles if an accident was to happen.
At FleetCover, we have years of experience tailoring hire and reward insurance to meet the needs and demands for a variety of different fleets.
We take the time to get to know your hire and reward policy needs, providing you with an insurance policy that suits you.
FAQs about Hire and Reward Insurance for Fleets
Can I get hire and reward insurance if I’m under 21?
Yes, there are some insurance companies out there who will provide hire and reward insurance policies for under 21 year olds. FleetCover specialise in providing young fleet drivers with the best policies and cover we can.
The premium prices of your insurance however, may be higher and come with greater restrictions due to your age and reduced amount of driving experience.
What is hire and reward insurance vs goods in transit insurance?
Where hire and reward insurance allows you to carry passengers or goods, goods in transit insurance protects the actual goods that you are carrying.
Goods in transit is an additional level of insurance used by couriers and haulage companies to protect the vehicle contents while it is being delivered from one site to another.
It does not replace the actual vehicle’s insurance policy and cover for your goods will not be covered as standard on your motor insurance policy. A separate policy would be arranged for the goods.
Is taxi insurance the same as hire and reward insurance?
While taxi insurance and hire and reward insurance do cover professional drivers who carry passengers, there is a slight difference between the two.
Depending on which kind of taxi you drive, either public or private taxi hires, you will need a specific type of insurance.
Hire and reward will then be a part of this insurance policy, covering you from the specific way you receive payment, either upfront or after you have arrived at your passengers destination.
Does hire and reward insurance cover food delivery?
Yes, hire and reward does cover food delivery. You will need fast food delivery insurance, which is simply a subcategory of hire and reward insurance.