Why should I need insurance?
A lot of people don't realise that their car insurance almost certainly only covers them for domestic usage - going on holiday, visiting people, shopping, etc. Even using the car to drive to work is usually allowed by the insurer if a commuting addon is bought - and that usually covers for driving to just one regular place of employment.
For instance; if a motorist drives to more than one factory or office as part of a job, insurers class that as business use. Failing to have this type of insurance cover can leave a driver uninsured, and subject to prosecution and even impounding of the car that is used. Perhaps worse, it could result in an insurance claim being refused, which may be financially ruinous.
Why do I need hire and reward insurance in particular?
This type of insurance is designed for those who deliver just about anything by motorised transport, in exchange for payment. This could be people: taxi insurance is a form of hire and reward cover; animals, parcels, furniture - you name it. Insurers usually want to know just what is being carried, and what sort of deliveries are made. Those who make single deliveries to one destination can have an entirely different policy from someone taking the same products to multiple destinations during a single journey.
Varieties of hire and reward cover include removals insurance, havy haulage and courier cover. Courier insurance is designed for people making multiple deliveries to different destinations; think fast food delivery people, or drivers working for companies like Amazon.
Is this kind of insurance expensive?
Insurance premium calculations are based on the risk of an insured person making a claim, and how much that claim is likely to cost. The cost of a policy depends on the usual factors: age of driver, experience, claim or conviction history, etc; plus a number of factors relating to the work that person does.
Someone carrying goods, and being paid for it, is, according to the insurers, statistically more liely to have an accident that someone else just nipping to the shops. The paid person may have delivery schedules to keep to, which could mean driving more quickly or taking extra risks, and might have to drive regularly on unfamiliar roads. Insurers have masses of statistics to work with which, they claim, allow them to calculate realistic premiums for all the different types of delivery driver.
Why should I pay extra insurance just for delivering a kitten to someone?
If you were being paid for delivering that kitten then technically you would need hire and reward insurance cover. This would mean that you might well be uninsured without it. Whether or not a police officer would charge you for driving without insurance for being caught with a kitten in a basket is debateable; but it is possible.
If you was going to give it away instead then you probably wouldn't need this kind of insurance. looking at the cost of hire and reward insurance you may be better giving that litter away after all!