Hire and Reward Fleet Insurance

Hire and reward means your vehicles are generating income by carrying passengers or someone else's goods. Standard motor fleet policies exclude this use entirely. Getting the right specialist cover is not optional - it is a legal requirement and the difference between a valid policy and a declined claim.

✓ Hire and reward cover included
✓ High mileage accepted
✓ Any driver options available
✓ UK-based advisors
✓ FCA regulated
✓ 24/7 claims support
✓ Same day cover available

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What is Hire and Reward Fleet Insurance?

Why choose Fleet Brokers?

Do I need this cover?

Cover levels available

Who is it for?

Main features of a policy

Optional add-ons

Payment options

Frequently asked questions

What is Hire and Reward Fleet Insurance?

Hire and Reward Fleet Insurance is specialist motor cover for businesses that earn money by transporting goods on behalf of third parties. As soon as a vehicle is used to carry someone else's goods for payment, it is operating under hire and reward conditions. Standard commercial van policies specifically exclude this, meaning any claim made while on a delivery run could be declined outright.

This cover is used by parcel carriers, same-day operators, food delivery businesses and any fleet contracted to move goods for customers. Unlike a standard van fleet policy, Hire and Reward Fleet Insurance is rated to reflect the realities of delivery work: urban driving all day, multiple stops, high annual mileage and the near-constant use that comes with running a commercial delivery operation.

A single fleet contract covers all your vehicles under one renewal date, making it easier to manage and reducing the risk of individual policies lapsing or being incorrectly classified.

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Why choose Fleet Brokers for your Hire and Reward Fleet Insurance?

Hire and reward insurance is a specialist market that not all fleet insurers are willing or well-equipped to write. The classification itself - carrying passengers or third-party goods for commercial gain - changes the risk assessment in ways that standard fleet underwriting is not designed to handle. Knowing which insurers have genuine appetite for this category, and how to present an operation to them, is where specialist broking adds real value.

Fleet Brokers by Quote Me Today places cover for hire and reward operators across passenger transport and delivery sectors. We understand the operator licensing framework, the driver qualification requirements and the difference between a taxi fleet, a courier operation and a chauffeur business - because the insurance for each is structured differently.

iRevolution Claims is available 24 hours a day. Hire and reward vehicles are often operating late at night, early in the morning and throughout weekends. When an incident happens, the ability to report it immediately and get the management process started without waiting for office hours is a practical necessity for this sector.Get a Quote Call 01227 285462

Hire and reward fleet insurance is a selective market. We know which insurers are actively writing this category of risk for different types of operation - taxis, PHVs, chauffeur fleets, courier businesses - and approach the right market for each rather than applying a one-size approach.

Hire and reward fleets often involve a mix of employed drivers, licensed owner-operators, self-employed drivers and vehicles working across multiple platforms. We help structure cover that reflects the actual arrangement rather than assuming a straightforward employed-driver model that may not match how your operation works.

Fleet Brokers is a trading name of Quote Me Today, which is authorised and regulated by the Financial Conduct Authority (FCA No. 786619). Regulatory standards govern every aspect of the advice and service we provide, including how we handle any conflicts between cost and coverage quality.

Hire and reward operations change with licensing, contract wins and seasonal demand. We make mid-term fleet adjustments straightforward so your cover reflects the vehicles actually in operation, including any changes to licensed vehicle numbers or driver arrangements that affect your policy position.

Annual, two-instalment or monthly direct debit through our third-party finance provider. Useful for hire and reward operators managing variable income patterns where spreading the annual premium across twelve months aligns better with how the business generates revenue.

Business type	Why Hire and Reward Fleet Insurance is relevant
Licensed taxi and hackney carriage operators	Operators licensed by their local authority to carry fare-paying passengers from ranks or by immediate hire, where hire and reward cover is both a legal and licensing requirement
Private hire vehicle operators	PHV businesses operating under local authority licence for pre-booked passenger transport, including app-based platforms and traditional telephone-booking operations
Chauffeur and executive car businesses	Premium transport operators providing corporate, VIP, wedding and event transport where presentation and reliability are the core commercial proposition
Courier and parcel delivery fleets	Businesses transporting parcels, documents and small consignments on behalf of senders in exchange for a delivery fee, where hire and reward classification applies to every journey
Non-emergency patient transport	Businesses providing pre-booked transport for NHS patients, care home residents and individuals with mobility needs, operating under healthcare commissioning contracts
Airport transfer and shuttle services	Businesses providing scheduled or on-demand transport between airports, hotels and other destinations for paying passengers, where every journey is a hire and reward transaction

Do I need Hire and Reward Fleet Insurance?

If any of your vehicles carry passengers for a fare or transport goods belonging to third parties in exchange for payment, hire and reward cover is a legal requirement. Operating without it is a criminal offence, not just a civil one. Any claim made under a standard fleet policy while a vehicle is being used for hire and reward will almost certainly be declined, leaving the business fully exposed.

For many operators the critical question is whether their activities constitute hire and reward or standard business use. A delivery driver taking your own products to your own customers is business use. A driver collecting and delivering parcels on behalf of a logistics network is hire and reward. The distinction matters enormously to insurers and to the law, and getting it wrong has serious consequences.

The table alongside outlines the types of operators that commonly require Hire and Reward Fleet Insurance.Get a Quote

Levels of cover available for Hire and Reward Fleet Insurance

Hire and Reward Fleet Insurance is available at three levels. Given the high daily mileage and near-constant use of vehicles in this sector, the level of cover you choose has a direct financial impact when something goes wrong.

Policy terms and the features included at each level vary between insurers. Always review the full wording before taking out cover to confirm it suits your operation.

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Third Party Only

The legal minimum. Covers third-party injury and property damage only. Your own vehicles are unprotected and there is no specific passenger liability cover beyond the mandatory third-party element. For commercial operators where vehicles are generating revenue on every journey, the financial gap this leaves is very significant.

Third Party, Fire and Theft

Adds fire and theft cover for your own vehicles. More appropriate than the minimum for licensed vehicles parked on public streets overnight, but accidental damage - the most common claim type for high-frequency hire and reward operations - is still excluded.

Comprehensive

The most complete level. Covers accidental damage to your own vehicles regardless of fault. For vehicles making multiple journeys every day in urban traffic, minor incidents are a statistical certainty over the course of a year. Comprehensive cover means those incidents do not come directly out of the business.

Who is Hire and Reward Fleet Insurance for?

Hire and Reward Fleet Insurance is for businesses where the vehicles are generating revenue by carrying other people's goods. If every journey your drivers make is a hire and reward journey, you need a policy that acknowledges that fact rather than one that ignores it.

Below is an overview of the types of businesses that commonly use this cover:

✓ Licensed taxi and hackney carriage operators
✓ Private hire and app-based ride-hailing fleets
✓ Chauffeur and executive car businesses
✓ Courier and parcel delivery fleets
✓ Non-emergency patient transport providers
✓ Airport transfer and shuttle operators
✓ Any business running two or more vehicles under hire and reward conditions

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Quote Me Today is a UK based, proudly independent insurance broker.

Taxi operators, private hire businesses and courier fleets have reviewed their experience with us on Trustpilot. Read what they say before deciding who to trust with your hire and reward fleet.

What are the main features of a Hire and Reward Fleet Insurance policy?

A Hire and Reward Fleet Insurance policy is structured around the realities of delivery and distribution work. Standard fleet policies are not. The features below reflect what operators in this sector need their cover to actually do.

Main features

Hire and reward use covered as standard - the policy is built around the commercial carriage of passengers or third-party goods for payment, which standard fleet policies specifically exclude
Passenger liability cover for passenger transport operations - claims involving injured passengers are a distinct and potentially high-value exposure; the policy reflects this rather than relying solely on third-party motor liability
Compatibility with operator licensing conditions - structured to meet the insurance requirements of taxi, PHV, PSV and O-licences where applicable
Any driver and named driver options - flexibility for rotating drivers, licensed owner-operators and self-employed driver arrangements, subject to insurer conditions
High journey frequency rated - hire and reward vehicles make far more journeys per year than standard commercial vehicles; the policy is rated to reflect this intensity rather than assuming average use
Mid-term vehicle changes - add or remove vehicles as licensed numbers change, with premium adjusted pro-rata
24/7 claims via iRevolution Claims - incidents reported and managed at any hour for fleets operating evenings, nights and weekends
Flexible payment terms - annual, two-instalment or monthly direct debit through our third-party finance provider

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Optional add-ons and additional cover

Hire and Reward Fleet Insurance is the motor cover foundation. Running a delivery operation involves risks beyond the vehicles themselves: the goods in transit, your liability to the public during loading and unloading, and your obligations as an employer all need separate consideration.

We can help you explore the full range of commercial covers relevant to a hire and reward operation so that everything from the vehicles to the passengers to the employees is properly protected.

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Hire and reward motor fleet cover does not extend to the passengers themselves in the event of accidental death or serious injury. Passenger Personal Accident Insurance provides a fixed-sum payment for these events, separate from the liability element of the motor policy. Particularly relevant for operators regularly carrying vulnerable passengers or under contracts that specify this cover. Subject to policy terms.

A breakdown during a hire and reward journey has immediate revenue consequences and can damage customer relationships quickly. UK or UK/EU roadside assistance and recovery is available as a fleet add-on. For taxi and PHV operators particularly, where vehicle availability directly determines daily income, breakdown cover is worth serious consideration.

Hire and reward vehicles make a very high number of journeys compared to standard commercial fleets. The statistical frequency of fault claims is correspondingly higher, and policy excesses accumulate quickly across a busy fleet. Excess Protection reimburses the excess paid following a fault claim, converting an unpredictable cost into a manageable one. Subject to policy terms.

Covers claims from third parties for injury or property damage arising from your business activities outside the vehicle itself, for example during passenger boarding and alighting or at premises where your drivers collect or deliver. Our team can help you explore appropriate limits for a commercial transport operation.

Required by law for any hire and reward operator employing drivers, controllers or other staff. Covers injury and illness claims made by your employees. Separate from your fleet motor cover and required regardless of employment pattern.

The commercial intensity of hire and reward operations means more journeys and statistically more exposure to disputes, prosecution and uninsured loss recovery situations. Motor Legal Expenses Insurance covers the legal costs of these events. Subject to policy terms and conditions.

Flexible payment options

Hire and reward fleet premiums reflect the commercial intensity of the use and the additional liability that comes with passenger or cargo operations. We offer three payment structures to help manage the cost in a way that works for your business.

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Pay in full

Pay the full annual premium at the start of the policy. No finance charges apply, cover is locked in for the year and there is no ongoing payment administration to manage.

Two instalments

Pay 50% at inception and the remaining balance 28 days later. A practical option for operators who want to spread the initial outlay without committing to a monthly direct debit arrangement.

Monthly direct debit

Monthly instalments through our third-party premium finance provider. Useful for hire and reward operators managing variable income patterns - particularly taxi, PHV and courier businesses where daily revenue fluctuates with demand.

Frequently asked questions

Hire and reward fleet insurance raises questions about licensing, driver classification and the legal distinction between business use and commercial carriage that standard fleet insurance never has to address. The most common ones are answered below. Call 01227 285462 for anything specific to your operation.

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Standard commercial motor policies cover vehicles for business use but specifically exclude hire and reward, which means carrying third-party goods for payment. If you use a standard fleet policy for courier work and make a claim, the insurer is entitled to decline it on the basis that the vehicle was being used for a purpose not covered by the policy. Specialist courier cover is a legal requirement, not an optional upgrade.

No. The fleet policy covers the vehicles and your motor liability. It does not extend to the cargo. If you are contractually or legally responsible for goods while they are in your possession, a separate Goods in Transit policy is required. Many courier contracts make this a condition of engagement.

This varies between insurers. Some will include self-employed drivers under the fleet policy, others require them to hold their own policy with an extension to cover your vehicles. Your broker will help identify an approach that reflects your driver model and complies with any contractual obligations you have to the businesses you work for.

Yes. Electric vans can be included on a courier fleet policy. Insurers will consider factors such as battery value, charging arrangements and the availability of specialist repair facilities when assessing the risk. Flag any electric or hybrid vehicles when requesting a quote so they can be rated correctly.

Report the incident to iRevolution Claims as soon as possible. They are available 24 hours a day and will guide you through the notification process, manage the immediate aftermath and liaise with your insurer. Prompt reporting is important - delays can complicate the claims process.

Courier fleets typically cost more to insure than equivalent standard commercial fleets because of the hire and reward classification, high daily mileage and urban operating environment. Cost is influenced by fleet size, vehicle values, driver profiles, your claims history and the nature of your delivery work. Submit a quote request for an accurate indication based on your specific operation.

Get your Hire and Reward Fleet Insurance quote today

Tell us about your hire and reward operation and the vehicles you use. We will find specialist cover that matches your actual activities and licensing position.

Get a Quote Call 01227 285462