In this era of technology, where everything is done with ease at the press of a button, it isn’t surprising that even the food we eat can be bought through online websites and delivered right to our doorstep.
This has become a lucrative opportunity for companies that now provide auto services, such as Uber, which initially started out as a ride-sharing company before taking on food delivery services. However, some of those truly affected by these new food delivery business ideas are the delivery drivers who now wonder about the type of insurance they need to be fully protected.
Are Delivery Drivers Covered by a Personal Insurance Policy?
The answer to this question is no. This is because food delivery is considered a business and so can’t be covered by a personal insurance policy. Since the cars driven by them are used for commercial purposes and spend more time on the road, there is a higher risk of accidents, car damage, traffic jams, etc. For these reasons, insurance companies do not classify them as personal.
Ways in Which Delivery Drivers Can Stay Insured
There are still options provided to delivery drivers so that they can stay protected and insured on the road. These are as follows:
- Hired and Non-Owned Vehicle Liability Insurance: Some employers may provide this coverage for their drivers if they’re making use of their own personal vehicles for delivery or other work-related activities.
- Commercial Auto Insurance: This is another great option that offers coverage for liability and physical damage of vehicles used for business purposes. Unlike the above-mentioned insurance, commercial auto insurance is for business-owned vehicles and not personal ones.
These two insurance options are great for delivery drivers, but since many food delivery workers make use of their own personal vehicle, the Hired and Non-Owned Vehicle Liability Insurance is the most appropriate one to purchase, as it makes the employer responsible for any damage or accident that occurs during the employees’ work.
You, as an employer, must shield your company from liabilities by protecting your employee with the right kind of insurance for their delivery errands. Also, commercial auto insurance is only designed for company cars and not the employee’s personal car. However, if the employee’s personal car is being used for other business errands or even delivery, the car must be listed in the insurance policy.
Finally, getting the Hired and Non-Owned Auto Liability Insurance policy will protect your business as a business owner if your employee regularly makes use of their own personal car for work-related purposes or deliveries. Failure to do this can result in you being held responsible for whatever damages, loss, or medical expenses incurred due to the employee’s endeavors.
For more details on insurance for delivery drivers, you can contact your local insurance agent or any insurance company around you. At Advanced Insurance Group, you can speak to our experienced agents who are committed to providing you with the best possible insurance services at all times. To get started, contact us today!