Hire And Reward Insurance

If you deliver goods for other people, and get paid for it, you will need Hire and Reward insurance, whether you deliver the odd pizza in your car for a local takeaway, or a full load of refrigerators, washing machines or dishwashers for a major manufacturer.

However, are you unsure about which policy to buy? Looking for a cheap quotation? Don't worry, a whole panel of specialist insurers are available to help you!

Can hire and reward insurance really be cheap?

'Cheap' is a matter of opinion; but there are certainly ways of reducing the cost. It is an essential business expense but experts may help you not only save money, but also get you the right cover to comply with the law and keep you properly protected.

What is this type of insurance?

It is a type of insurance that covers delivery drivers or transport companies who are paid to deliver goods that they don't own themselves, including hot or cold food, parcels, household goods, car spares, or even industrial items, in exchange for payment. It is an addition to a standard car or van insurance policy, and it is a legal essential for these drivers.

There are many forms of hire and reward insurance, which is why it is vital that you get the right cover.

Why are there so many different types?

Hire and reward policies are usually created for specific business uses. A policy covering fast food deliveries to customers' homes is different from one for a driver working for a company like Currys delivering TV sets, which is different from a removals firm taking furniture to a new home. From an insurer's point of view they all face different risks, so what type of goods can be carried, and where to, when, and by whom is usually strictly specified. This is why many taxi drivers would refuse to pick up a curry from the takeaway for you; it is likely that it would breach the conditions of their insurance.

Many of these policies are used by drivers delivering parcels, groceries, or fast food. Rather than make a single delivery a day to a location that they may be quite familiar with, they may make lots of them to addresses they have never been to before, by van, car, scooter or motorbike.

On the other hand a driver may collect a single large consignment from the same warehouse every day, and deliver it to the same, familiar distribution depot. Each of them has a different risk profile in the eyes of the insurers.

What is food delivery insurance?

Food delivery insurance is just another name for hire and reward insurance. This usually usually covers a courier for delivering pre-prepared food; but nothing else. It probably would not, for instance, provide cover for delivering mixed parcels, groceries or any other kind of goods.

What is the difference between courier, delivery, and haulage insurance?

Not a lot; they are all forms of hire and reward cover. However insurers like to know, for instance, how many deliveries a day a driver is likely to make, what kind of goods are to be delivered, and over what area. This is why there are so many different types of cover.

Why is food delivery insurance often so expensive?

The claims record for food delivery drivers is higher than the average, for several reasons. For example: someone delivering takeaway food would possibly do most work during the evening or late at night; so there are more risks of accidents, particularly when they are trying to navigate in the darkness using a satnav or similar. They are expected to go out in bad weather bacause the worse it is, the more customers are tempted to stay warm and comfy at home whilst someone else gets wet bringing a meal to them. And not least of all freshly cooked food needs to be delivered quickly whilst it's at it's best.

This all adds up to a more risky scenario for the insurers to consider, with drivers tempted to drive less carefully than they should do in order to get the hot food delivered in time. This is why it can be so difficult to get quotes for this type of insurance.

On the other hand, a DHL delivery driver may have multiple deliveries to make but these are made largely during daylight hours, and if a delivery is late it may upset the customer but it wouldn't normally be a disaster.

Where does this leave me?

All this means that having a hire and reward policy doesn't mean that you are automatically covered for delivering particular products. It is vital that you buy the right insurance policy that covers you for the type of work you are doing. Luckily though you can have access to a whole panel of insurance providers who are highly experienced in getting quotes for delivery drivers all all kinds to compare, so why not get quotes now!