If you carry goods for payment, your normal van insurance almost certainly won't cover you. Paid delivery work needs hire and reward insurance — and getting this wrong can void a claim and stop you working. Here's what it is, what else you might need, and what drives the price.
What is hire and reward insurance?
Hire and reward is the class of motor insurance that covers you to carry other people's goods (or passengers) in return for payment. The moment you're paid to move a parcel, pallet or load — as a courier, multi-drop driver or owner-driver — you need it.
It's different from carriage of own goods, which only covers tools and equipment you carry for your own trade (a plumber's parts, say). Carriage of own goods does not cover delivering goods for a client, so it's not enough for delivery work.
Why standard van insurance isn't enough
A normal "social, domestic and pleasure" (or even commuting/business) van policy is written on the assumption you aren't being paid to carry goods. Use that van for paid deliveries and an insurer can refuse a claim — leaving you personally liable for damage, injury or the value of the load. For self-employed delivery work, hire and reward is the baseline, not an optional extra.
The cover you may need, in plain terms
| Cover | What it protects | Typically needed? |
|---|---|---|
| Hire & reward motor | The vehicle, third parties, and your liability while driving for payment | Yes — the essential one |
| Goods in transit (GIT) | The value of the goods you're carrying if lost or damaged | Often required by clients |
| Public liability | Injury or property damage you cause to others while working | Commonly asked for |
Many courier policies bundle these together. Check the goods in transit limit (the maximum the policy will pay out per load) matches the value of what you'll actually carry — some contracts specify a minimum.
What affects the cost
- Vehicle — value, size and age. A 3.5t van costs more to cover than a small car.
- Your experience — years driving, age, and any no-claims history (including any you've built on a private policy, which some insurers will mirror).
- Where you operate — your area and how far you travel.
- Goods in transit limit — higher cover means a higher premium.
- Claims history — past claims push the price up.
Premiums vary widely, so it pays to compare specialist courier insurers rather than assume your existing broker offers the best rate. Treat the cost as a business expense — it's one of the things you can usually claim against tax. See self-employed driver tax and expenses for how that works.
How to get set up
- Decide whether you're using your own van or a leased/hired one.
- Get quotes for hire and reward cover (add goods in transit and public liability to match what clients ask for).
- Keep your certificate and schedule to hand — agencies and clients will ask to see proof before you start.
This is general information, not insurance advice. Cover names and requirements vary between insurers — always confirm the exact policy wording meets the work you're taking on.
Driving with FlexiDriver
For most self-employed van work with FlexiDriver, you'll need a van insured for hire and reward (and usually goods in transit) — it's part of getting verified. Once your documents are checked, you can start picking up van and multi-drop shifts in your area.
New to self-employed driving? Start with how to become a self-employed delivery driver, or create your driver account with FlexiDriver — it takes under a minute.