Hire and Reward Insurance—Who Needs it in Massachusetts?

I’m thinking of becoming a self-employed delivery driver. What insurance do I need?

There are ample opportunities for delivery drivers in the Newton, Wellesley, Needham, and Brookline areas. With a large urban area like Boston nearby, the potential for delivery drivers is vast. You don’t need a large vehicle or a pick-up to get started, many drivers start out with only a driver’s license and a medium-sized family car. But, whatever the goods, the vehicle, or the locale, if you are driving for financial reward, you will need appropriate insurance.

Commercial auto insurance is a legal requirement for self-employed delivery drivers in Massachusetts. Any commercial driver needs general liability insurance, but delivery drivers specifically need Hire and Reward Insurance. Hire and Reward Insurance, also known as H&R insurance, offers commercial auto insurance and public liability.

I use my car for commercial deliveries in the Boston area and for personal use around Wellesley, Newton, and Needham. Does my Hire and Reward Insurance have me covered?

In Massachusetts, Hire and Reward insurance does not extend to personal use, so if you use your car in both capacities, you will need both Hire and Reward Insurance and Social, Domestic and Pleasure (SD&P) insurance. Some insurance companies offer bundled insurance packages that combine both Hire and Reward and Social, Domestic and Pleasure insurance, but most require you to hold two distinct policies. Learn more about our Massachusetts commercial insurance coverage.

I only drive from one depot to one delivery destination. Do I still need Hire and Reward Insurance?

Business Class or Class 3 Insurance is similar to Hire and Reward Insurance. For example, a driver has a regular route picking up goods from a warehouse in Newton, MA, and delivering them to a business in Needham, MA. They make no other deliveries on the route, and the vehicle is used for no other types of delivery on other occasions. In this instance, Business Class insurance will provide appropriate coverage. But if the driver makes any other deliveries along the way, then Hire and Reward insurance will be necessary.

What affects the cost of Hire and Reward insurance?

Many elements that impact the Hire and Reward insurance cost are the same as for Social, Domestic and Pleasure Insurance or Business Class insurance. Most immediately impactful are the type of vehicle being used for the deliveries, the location in which the deliveries are being made, the type of goods being delivered, and the driver’s driving history.

Where should I get my business insurance?

‍
No aspect of your business should be treated without due diligence. You wouldn’t shop for your specialized vehicle without taking expert advice, so why would you shop for your insurance without the same level of caution? The Kovalev Insurance Agency has the best independent insurance agents in the Newton, Needham, Wellesley, and Brookline areas. We have experience in local H & R Insurance and Transportation Insurance and our team finds unbeatable tailor-made insurance packages for all types of Newton, Needham, and Wellesley businesses, including independent-contractor self-employed delivery drivers across southern MA and throughout the Boston area.

Contact Kovalev Insurance Agency for the best Massachusetts Hire and Reward insurance coverage and options.