Food delivery drivers often use their cars to make deliveries. That can cause insurance problems when they get in an accident and their insurance doesn’t apply. Keep reading to learn how a hired and non-owned insurance policy can help solve this problem.
What’s a Hired and Non-Owned Insurance Policy?
A hired and non-owned insurance policy covers cars that you don’t own. Hired means cars that you rent. Non-owned means cars owned by people working for you.
This type of coverage allows you to be insured without having to worry about if someone else’s policy will cover you or buying expensive short-term insurance for rentals. It typically provides liability protection for both you and the driver. If your delivery driver causes an accident, you don’t have to worry about being sued if their insurance doesn’t cover the accident. If you’re the delivery driver, you can receive protection even when your insurance may not apply.
Property damage coverage is also often included. If your business equipment is stolen from an employee’s car, it will generally be covered.
The one thing that generally isn’t included as a standard option is damage to the vehicle. The reason is that this coverage is typically sold to businesses to guard against lawsuits rather than drivers to protect their cars.
Why Doesn’t Personal Insurance Apply?
Personal car insurance policies generally exclude business activities. Delivery driving is a business activity. This is different from commuting to a job in a restaurant because instead of one trip home and one trip back, the delivery driver is driving around all day. This increases the chances of an accident and creates a different risk for the insurance company than a car that’s only used for commuting.
Under most personal insurance policies, if you’re engaged in an excluded activity, such as delivery driving when you’re involved in an accident, your coverage does not apply. You wouldn’t receive any money to fix or replace your car, pay your medical bills, or cover any lawsuits filed against you.
Some insurance companies will go even farther and cancel your insurance policy if they find out you’re driving for business purposes even without an accident. This is because people will sometimes try to falsify a claim by saying they were driving for personal rather than business reasons at the time of the accident.
Can a Delivery Driver Get Coverage if Their Employer Doesn’t?
If you’re a delivery driver and your employer doesn’t provide insurance coverage or has gaps in their coverage, you may be able to get coverage on your own. If you’re working through an app, check to see if they have supplemental coverage that’s included with the app or available for purchase that would cover you when your insurance won’t. Your insurance company may also allow you to purchase an add-on that covers your business activities. Finally, you can purchase a commercial car insurance policy for your business driving.
To learn more about your options, talk to Great Lakes Insurance. We’ll help make sure you’re fully covered without paying for extra coverage you don’t need.