Hire & Reward vs Goods in Transit: What is the Difference?

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Last updated: 28 Oct 2025

If you drive a van for work, you’ve probably heard of Hire & Reward and Goods in Transit insurance. They sound similar, but they cover completely different risks. One protects how you use your van, while the other protects what you carry inside it. Confusing them could leave you uninsured even if you think you’re covered. This guide explains the difference, who needs which type of cover, and why many tradesmen and couriers need both.

What Is Hire & Reward Insurance?

Hire & Reward (often called “carriage of goods for hire or reward”) is the cover you need when you are paid to transport goods that do not belong to you.

Examples include:

• Couriers delivering parcels for companies or online marketplaces
• Delivery drivers carrying items for customers
• Tradesmen transporting products they have sold

Why it matters:

If you deliver goods for payment without Hire & Reward cover, you are classed as driving uninsured. Standard business-use or social-use insurance will not protect you.

Hire & Reward is a legal requirement under the Road Traffic Act for anyone carrying goods or passengers for payment (see GOV.UK operator licence guidance).

What Is Goods in Transit Insurance?

Goods in Transit (GIT) insurance protects the items you carry against theft, loss, or damage while they are being moved from one place to another.

That could be:

• A tradesman’s tools
• A courier’s parcels
• A removal firm’s customer property

If the goods are stolen, damaged, or destroyed during loading, transport, or unloading, GIT covers the cost up to the insured limit.

Even if your van itself is insured, that does not mean your cargo is covered. GIT is vital for anyone whose livelihood depends on the goods they transport (read more about Goods in Transit here)

Key Difference Between Hire & Reward and Goods in Transit

Why You Might Need Both

Many drivers need both policies.

• Hire & Reward keeps you legal to operate.
• Goods in Transit protects what you carry.

Example:

A self-employed courier delivering items for online retailers needs Hire & Reward to operate legally, and Goods in Transit to protect the parcels if they are lost or damaged.

If you combine both into one specialist policy, you can often secure cheaper overall premiums than buying them separately. Brokers can help compare combined cover options designed for couriers and tradesmen.

Common Mistakes to Avoid

• Assuming one policy includes the other.
• Using standard business-use insurance for paid deliveries.
• Underinsuring the value of goods or tools.
• Forgetting to declare changes in job type or van use.

For more on underinsurance, see the Aviva's new guide to underinsurance.

FAQs

Do I legally need Hire & Reward insurance?

Yes. If you are being paid to transport goods or passengers, Hire & Reward is required by law. Without it, you could be fined or have your vehicle seized (GOV.UK hire & reward licence guidance).

Is Goods in Transit cover mandatory?

No, but it is strongly recommended. Many courier contracts, trade networks, or e-commerce platforms require proof of GIT cover before they will work with you

Can I get both in one policy?

Yes. Many insurers or brokers offer combined policies that include both Hire & Reward and Goods in Transit under one premium.

What happens if I do not have Hire & Reward but still deliver goods?

Your insurance will be invalid, any claim may be rejected, and you could face penalties for uninsured driving.

Bottom Line

Hire & Reward and Goods in Transit insurance cover different things but often work together.

• Hire & Reward covers what you do: carrying goods for payment.
• Goods in Transit covers what you carry: the items themselves.

Without the right combination, you are exposed legally and financially. Combined policies can often reduce premiums while keeping both risks covered. Always check your policy with an FCA-authorised broker or a trusted trade-specialist intermediary.