Does your Car insurance cover you if you decide to work in food delivery?
With so many of you, your friends, family or neighbors being sent home with or without pay more than likely you may know someone that is thinking about working for a food delivery business
There was a time when we only had pizza delivery but now you can get items delivered from national and local stores such as CVS, Langenstein’s, Office Depot, Petco, Rouses, Target, Winn Dixie and others by using an app
and the food delivery companies are now hiring such as Instacart, Shipt and Waitr
Before you sign up and start working you need to know do you even have coverage?
Your personal car insurance policy will exclude food delivery, business use or any type of ride sharing
Get into an accident delivering food for a company “business use” and it is possible you are paying all claims out of pocket unless you purchase the endorsement or add on coverage for your personal auto insurance policy
You need to purchase a Rideshare Insurance Endorsement
What is Rideshare coverage?
Two types of business use…Rideshare or Delivery
TIP: If the business uses an app and does not have a physical location this is the endorsement you need
VEHICLE USED FOR DELIVERY
The pick-up or delivery of goods (newspapers, pizza, other food/items, etc.), or the transportation of people (limousine, taxi, etc.)
TIP: If you work for a company that does not use an app (uber, lyft, instacart, waitr) and they have a physical location in your city
RIDESHARE ENDORSEMENT vs COMMERCIAL AUTO POLICY
An example here is the local poboy restaurant now wants to offer lunch delivery and they send the employee out in their own car to make a delivery
The restaurant owner would need hired and non owned auto insurance to protect their business from an auto insurance claim and the employee driver would need a commercial auto insurance policy as the add on coverage on a personal auto policy would provide no coverage
Here are a few companies that offer the add on coverage to your personal auto policy
These companies can offer an add on endorsement to your personal auto policy which can range from 5%-25% a month increase