Business Use vs Hire & Reward Insurance
Choosing the correct class of use is one of the most critical steps in setting up commercial vehicle cover. Getting it wrong is a leading cause of claim rejection. This comparison details the differences between standard Business Use and Hire and Reward cover.
| Feature | Business Use Cover | Hire and Reward Cover |
|---|---|---|
| Definition | Using a vehicle for tasks relating to your own trade or job. | Carrying goods or passengers belonging to third parties for payment. |
| Example Tasks | A builder carrying tools, or an engineer traveling to service clients. | A courier delivering parcels, or a taxi driver carrying a fare. |
| Cost Factor | Standard commercial rates (lower risk profile). | Higher rates due to high mileage and multiple delivery drops. |
| Goods Carried | Your own tools, stock, or business equipment. | Goods belonging to others (requires Goods in Transit extension). |
If you take on delivery tasks or carry third-party cargo for money, standard business use is legally invalid. You must declare this and select Hire and Reward cover. You can read more details in our Hire and Reward Guide.