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Delivery driver insurance is not a typical car insurance policy, but rather a business vehicle insurance policy. For this specific category, most insurance firms use the term ‘Hire for Reward’ or courier policy or as an add-on to a standard vehicle policy. Without this rider or type of policy, no claims will be honored if the vehicle is involved in any type of accident that occurs during the delivery process.
With today’s on-demand lifestyle in full swing, fast food delivery driver policies are the most popular and numerous. This allows for college students to deliver food in their spare time as a part time driver along with full time drivers who make a living at it.
For those that plan on delivery food for 20 hours a week or less an affordable way to do it is with a pay as you go policy. This is also a good way to keep the premiums down since it is not always active.
Pay as you go requires the driver to already have vehicle insurance. This can be third party, third party fire and theft or comprehensives. Then the add-on of courier insurance is required.
The courier insurance or Hire for reward is just part time and is only active when the vehicle is being used to deliver food. To keep accurate records of when the courier insurance is active a telemetric device is installed in the vehicle. This tracks the following info when the app from the insurance company is activated by the driver.
To have this type of rider on a policy a deposit must be made along with a direct deposit link to the insurance company so when the balance drops below a predetermined limit, more is automatically withdrawn. The rate of insurance will be calculated either by the mile or per hour.
The full time delivery driver should take out a food courier insurance policy. This will include the standard road risk policy of third party, third party fire and theft or comprehensive along with a Hire for Reward add-on for food delivery. This type of policy can have a set premium amount paid monthly, quarterly or annually. It will also include the rider for food courier hire for reward cover.
For both the part time and full time delivery driver the Hire For Reward section is where the public liability cover is present. This is financial protection if a third party claims you caused them harm or damage to their property. It also covers the food being delivered if it is damaged in the delivery process due to a vehicle accident or other problem the courier might have during the delivery process.
If a delivery driver does not have the hire for reward rider or add-on to their vehicle policy and is involved in an accident or incident while making a food delivery, it is like having no insurance at all. No claim will be accepted by the insurance company who holds the vehicle insurance policy.
The reason for this is delivering food is considered a higher risk that just covering a standard vehicle on the road. If a delivery person is caught without the proper insurance they could lose their driver’s license and they will be held accountable financially for all the damage that has occurred.
Most food service delivery companies and those restaurants that hire contract delivery drivers require the proper insurance be held by their drivers. By having the proper fast food delivery driver insurance policy is the path that needs to be taken to help ensure this revenue stream will continue unabated.