Imagine driving down the street to deliver food or on your way to pick up someone for rideshare services and find yourself in an accident. Naturally, you’re covered, right? Or are you? That’s an answer many people find out the hard way – when working for these services, you may not be covered in certain instances. It’s important to find out whether the company you’re driving for has car insurance for food delivery. Even if certain companies have this type of policy on hand, it may be possible that your car isn’t covered when it’s not in operation. Know what you have and what you need for your vehicle. Find out more about it below
Employer Coverage for Drivers
Some employers provide limited coverage for their drivers while operating on behalf of the business. These may include:
Delivery driver coverage
This is a Hired & Non-Owned insurance policy obtained by the employer for their delivery drivers. It’s very limited and has certain stipulations attached to it, such as not covering a vehicle when it’s not driving or has food to be delivered. Additionally, this is a liability provision and will not cover any collision damage. It’s an endorsement that only applies when driving for the company.
Rideshare driver coverage
This policy is very similar to the delivery driver coverage provisions but slightly different. They are synonymous in that collision damage is not covered – only liability. You can expect yourself and the riders to be covered during transport, but that’s about it.
Coverage lapses
These policies have significant gaps in them. Who wants to drive for an organization without knowing whether your car will be covered, or when. Working with an insurance agent should provide all the answers about lapses in coverage. Knowing when you need to put your personal policy in front is key. Running the risk of having an employer lapse in insurance can severely compromise your safety and the safety of your vehicle. It’s important to make sure you have a policy that covers everything, even when you are working for another organization. It’s always better to be safe than sorry.
How is carpooling handled?
In most instances, carpooling should be covered by your personal insurance policy unless you are carpooling on behalf of the organization. It’s always a good thing to ask about this with the employer to ensure your car is covered under their standard policy or added as a provision.
Is My Personal Policy Affected by Driving For a Company?
When you’re driving on behalf of another company, they should by default cover you as a provision of their insurance policy. Provisions vary state by state, but you should always have adequate personal coverage to be on the safe side. You should also inquire as to what your state requires when you are performing delivery or rideshare services. If you are doing this in a fulltime capacity, you may be required to have a commercial insurance license. This could put your insurance coverage category in an entirely different scope.
Always Have the Right Insurance
Getting the right insurance means working with your agent to make sure your coverage includes everything you need. They can help you decide what you need based on how you use your vehicle, how often, and if any special conditions need addressing. Your agent will also factor in whether you need a commercial license. They will be able to advise you on the best course of action that works to your benefit while staying within your budget. For more information, call Don Neeley Insurance today.
