Hire And Reward Vs Courier Insurance: What Each Term Means
Not the same thing. The two terms get used as if they mean one product, but one describes how you use the vehicle and the other is a name on a policy.
Hire and reward is the insurance term for getting paid to carry goods or people. Paid parcel and food deliveries are the typical courier example. If you want the full picture of cover for delivery work, this guide on what insurance a courier driver needs sets it out.
Courier insurance is a product name. Providers use it for cover sold to couriers, and it's usually built around hire and reward use. What else sits inside the package varies from one provider to the next.
Business use is a different thing again. It's for driving as part of your job, such as visiting clients or sites, and it isn't the same as being paid to carry goods.
Why The Law Cares About Use, Not Product Names
Because the law ties insurance to how you use the vehicle. By law, you can't drive on a road or in a public place without insurance. And that insurance has to cover the way you're actually using the vehicle. In England, Wales and Scotland that's set out in the Road Traffic Act, and Northern Ireland has the same basic rule in its own law.
What the law says
a person must not use a motor vehicle on a road or other public place unless there is in force in relation to the use of the vehicle by that person such a policy of insurance … as complies with the requirements of this Part of this Act …
In plain English: you need insurance that covers you for the way you're using the vehicle on a road or in a public place.
So the question isn't what the policy is called. It's whether the way you're using the vehicle is a use your policy lists. Policies set out the uses they cover, and not every policy includes hire and reward.
Hire And Reward Vs Courier Insurance
One describes how you use the vehicle. The other is a name for a policy or package.
| Hire and rewardA use a policy covers | Courier insuranceA product name | |
|---|---|---|
| What the term means | Using the vehicle for payment, such as paid deliveries | Cover sold for courier work, usually built around hire and reward |
| Where you see it | The use listed on your policy | How a provider names and bundles its cover |
| Goods you carry | The legal minimum doesn't have to cover them | Depends on the package, so check the terms |
| Paid delivery work | Amazon Flex asks car delivery partners for it | Check the package includes hire and reward use |
A guide to what to check, not advice. Policy terms vary between insurers.
This is why two drivers with policies that sound alike can be in very different positions. One policy may list hire and reward, and the other may only list social, domestic and pleasure use with commuting.
The term also comes up for drivers who carry paying passengers rather than parcels. There's more on what insurance private hire drivers need.
Hire And Reward Vs Goods In Transit: The Vehicle Or The Load?
Different covers. Hire and reward is about how you use the vehicle, while goods cover is about what you carry.
The legal minimum motor cover doesn't have to include damage to goods you're paid to carry. So whether the parcels in the back are protected is a separate question from whether you're insured to drive for pay.
Goods in transit is the usual name for cover for the load itself. Whether you need it depends on what you carry and what your contract or client asks for, so check the terms rather than assume a courier package includes it. Read what the policy leaves out, too.
Your own vehicle is a separate question again. Third party cover is the legal minimum, and GOV.UK says it doesn't pay for repairs to your own vehicle. So check your level of cover as well as the use.
Platforms and clients may also set their own minimums. Amazon Flex says UK delivery partners using a car need hire and reward insurance as well as at least social, domestic and pleasure cover.
Social, domestic and pleasure cover (the standard use for personal driving) sits alongside hire and reward, not instead of it. If a platform asks for both, check your certificate shows both before you upload it, and ask your insurer if it doesn't.
What Happens If Your Policy Doesn't Include Hire And Reward
You may not be insured while you deliver. If your policy doesn't list hire and reward use, paid deliveries may fall outside the use it covers.
In England, Wales and Scotland, driving without insurance for the way you're using the vehicle is an offence. GOV.UK says the police could give you a £300 fixed penalty and six penalty points.
If the case goes to court, GOV.UK says the fine can be unlimited and you can be banned from driving. The police can also seize the vehicle. In Northern Ireland, nidirect lists a fine of up to £5,000 and 6 to 8 penalty points for driving without insurance.
There's a money risk too. If you have an accident during work your policy doesn't cover, your insurer may not pay for your own losses, such as repairs to your vehicle.
Ian's note: Ignore what the policy is called and read the use it lists. If hire and reward isn't there, calling it courier cover doesn't change what it covers.
How To Check Your Policy Covers Courier Work
Read the use on your policy and tell your insurer how you drive. GOV.UK advises van drivers to check the level of cover they need and to tell their insurer whether the van is for social or business use.
Check Before Your First Delivery Shift
Whatever the policy is called, these details decide whether it fits your courier work.
On Your Policy
- Check the use covers hire and reward, not only business use
- Check social, domestic and pleasure use is included
- Read what the policy leaves out for paid deliveries
With Your Insurer
- Tell them how you use the vehicle, including deliveries
- Ask whether the goods you carry are covered
- Ask what other covers the package includes
With The Platform Or Client
- Check which insurance they ask to see
- Keep your certificate ready to upload
A guide to what to check, not advice.
Check that hire and reward use is listed, not just business use. Your certificate of insurance is a quick first check, but read the policy schedule and wording too. If they don't make it clear, ask your insurer or broker to confirm.
Then check what your platform or client asks to see before you start. Some want proof of hire and reward cover as well as your usual personal cover.
If your current policy doesn't cover hire and reward use, you may need a courier insurance policy. You can compare courier insurance quotes when you're ready.
FAQs
Is Hire And Reward Insurance Separate?
Not always. Hire and reward is a use that a motor policy either covers or leaves out. It may be sold as its own policy or built into a courier package, so check the use your policy lists.
What Does Hire And Reward Insurance Cover?
Using your vehicle to carry goods or people for payment, such as parcel and food deliveries. It's a use, not a level of cover, so it doesn't decide whether damage to your own vehicle is covered. The legal minimum also doesn't have to cover the goods you carry.
What Is Courier Insurance And What Does It Cover?
It depends on the package. Courier insurance is a name providers give to cover for delivery work. It's usually built around hire and reward and may add other covers. Read the policy schedule (the document that lists what's covered) to see what's included.
Do I Need Hire And Reward Insurance For Amazon Flex?
Yes, if you deliver by car. Amazon Flex says UK delivery partners using a car need hire and reward insurance as well as at least social, domestic and pleasure cover. Check its current requirements before you upload documents.
What Happens If You Don't Have Hire And Reward Insurance?
You may be driving uninsured while you deliver. In England, Wales and Scotland, driving without insurance for that use is an offence, and GOV.UK lists a £300 fixed penalty and six penalty points. A court can also give an unlimited fine or a driving ban.
Is Hire And Reward Insurance The Same As Goods In Transit?
No. Hire and reward covers you to drive when you're paid to carry goods. The legal minimum motor cover doesn't have to include damage to the goods themselves, so cover for the load is a separate question for your policy or contract.
Sources, checked on 29 September 2026: legislation.gov.uk: Road Traffic Act 1988, section 143, legislation.gov.uk: Road Traffic Act 1988, section 145, Amazon Flex: Frequently Asked Questions, GOV.UK: Driving without insurance, GOV.UK: Driving a van, legislation.gov.uk: Road Traffic (Northern Ireland) Order 1981, article 90, nidirect: Penalties, GOV.UK: Vehicle insurance, ABI: Commercial motor insurance
