How Is Courier Insurance Different From Hire and Reward?
Courier insurance is a bundled policy designed for delivery drivers. Hire and reward is a specific usage classification that only covers your vehicle for carrying goods for payment.
Courier insurance includes hire and reward, but hire and reward on its own does not make you fully covered.
Many new couriers assume that adding hire and reward to a standard van policy gives them everything they need. It does not, and the gap in cover can be costly if something goes wrong.
Hire and reward only covers your vehicle. It doesn’t protect the goods you carry, and it doesn’t cover injuries you cause while delivering on foot. Courier insurance bundles hire and reward with goods in transit and public liability for just a few pounds more a month.
Get the full package when you compare courier insurance quotes rather than just adding hire and reward to a standard policy.
What is hire and reward insurance?
Hire and reward is a vehicle insurance classification that allows you to carry goods or passengers in exchange for payment. It is a legal requirement for any courier.
Why is hire and reward required?
Under Section 143 of the Road Traffic Act 1988, you must have the correct class of insurance for how you use your vehicle. Standard social, domestic, and commuting policies do not cover paid delivery work.
What does hire and reward actually cover?
Hire and reward covers the vehicle and third-party injury or property damage caused by your driving. It does not protect the goods you carry, and it does not cover incidents that happen away from the vehicle, such as injuring someone while making a delivery on foot.
Think of it as the legal entry ticket to do courier work. It keeps you on the right side of the law, but it does not protect you from the financial risks of the job.
What does courier insurance include?
Courier insurance is a package that bundles hire and reward with several other cover types designed for delivery work. The exact combination varies by insurer, but most courier policies include the following.
| Cover Type | Hire and Reward Only | Courier Insurance Package |
| Vehicle cover for paid delivery | Yes | Yes |
| Goods in transit | No | Usually included |
| Public liability | No | Often included or available |
| Employers’ liability | No | Available if you employ staff |
| Breakdown cover | No | Optional add-on |
| Legal expenses | No | Optional add-on |
Our guide to what courier insurance covers explains each of these cover types in detail.
What is the difference between courier insurance and hire and reward?
The simplest way to think about it is that hire and reward is one ingredient, while courier insurance is the full recipe.
Scope of cover
Hire and reward only covers the vehicle and your liability as a driver. Courier insurance also covers the goods you carry, your liability to third parties, and optional extras such as breakdown and legal expenses.
This matters because most claims couriers face are not vehicle claims. They involve lost parcels, damaged goods, or an injury caused while making a delivery.
Claims protection
If a parcel is stolen from your van, hire and reward will not pay out because it does not include goods in transit cover. A full courier insurance policy would cover the loss up to the policy limit.
Our courier insurance vs goods in transit guide explains the differences between these cover types.
Platform requirements
Delivery platforms such as Amazon Flex and food delivery apps typically expect more than just hire and reward. Some require or recommend public liability insurance as part of your cover.
Can you get hire and reward without full courier insurance?
Yes, some insurers offer hire and reward as a standalone add-on to an existing van or car insurance policy. This meets the legal minimum but leaves gaps.
When hire and reward alone may be enough
If you only carry items that belong to your employer and never handle third-party goods, hire and reward on its own may be sufficient. This applies to some employed delivery drivers whose employer provides goods in transit cover.
When you need the full package
If you are a self-employed courier handling third-party parcels, you are personally responsible for those goods. Without goods in transit cover, any loss or damage comes out of your own pocket.
If you employ anyone to help with deliveries, you also need employers’ liability insurance by law. This is never included in a hire and reward add-on.
Which do you need: courier insurance or hire and reward only?
For most couriers, a full courier insurance package is the better choice. The cost difference is often small, and the protection gap without it can be serious.
| Your Situation | Recommended Cover |
| Self-employed, delivering parcels for multiple clients | Full courier insurance |
| Working for one employer who provides goods cover | Hire and reward may be enough |
| Delivering food via apps (Amazon Flex, Deliveroo, Just Eat) | Full courier insurance with public liability |
| Running a small courier business with employees | Full courier insurance plus employers’ liability |
| Occasional delivery work alongside other driving | Full courier insurance (gaps are not worth the saving) |
The cost difference between hire and reward only and a full courier insurance package is often less than you might expect. For the sake of a few pounds a month, you avoid carrying the risk of uninsured goods and liability claims.
If you are unsure what you need, our what is courier insurance guide walks through the basics step by step.
Frequently Asked Questions (FAQs)
No, hire and reward is one component of courier insurance. Courier insurance bundles hire and reward with goods in transit, public liability, and other protections.
If the claim relates to damaged goods or a public liability incident, yes. Hire and reward only covers the vehicle, not the goods or third-party claims.
No, public liability is a separate cover type. You need to add it to your policy or choose a courier insurance package that includes it.
Hire and reward meets the legal minimum, but Amazon Flex also requires public liability cover. A full courier insurance package is the simplest way to meet all platform requirements.
No, hire and reward does not cover the goods you carry. You need goods in transit insurance for that.
Hire and reward as a standalone add-on is usually cheaper, but it leaves serious gaps in cover. Our courier insurance cost guide compares typical premiums for both options.
Yes, hire and reward covers the vehicle for any paid delivery work including furniture, but you should also have goods in transit cover for high-value items. See our van insurance page for vehicle-specific options.