The food courier service industry is one of the fastest growing business sectors today and their need for proper insurance coverage of the vehicle, driver and food items is now in demand. This is where we can help you with the right coverage at the right price to help you protect your business.
Today it is fairly common to be able to order a hit food from the local restaurant for a special occasion or fast food from a nearby chippy, Chinese or Pizza parlor. Making sure the delivery is still hot is a major requirement for the business to be successful. To help achieve this aim the takwaaye may employ one of the following methods or a mix.
This is the type of coverage where an employee drives a company owned vehicle to deliver food to the customers. This is a policy the business owner takes out on their vehicle then hires a driver to make the deliveries with it.
The business owner can cover the vehicle with standard courier liability insurance. This is basically third party coverage along with coverage for the items being transported if they are lost, stolen or damaged during transport.
If a business owner desired more coverage for their vehicle, then a comprehensive courier insurance policy will be required. This includes the same type of coverage a liability policy but with the addition of covering the cost of repairs of the company owned vehicle and the medical costs of the driver.
For delivery drivers that will be using their own vehicle to make the deliver, more than the standard liability vehicle insurance policy is required to be covered while working. Along with the standard third party liability coverage the driver must also notify their insurance company they are making delivers for business use.
Unless that declaration is made, any accident or incident that might occur while working, the owner of the vehicle will be liable for all cost because all claims will be rejected.
With a hire and reward amendment added your third party liability insurance; third party liability food courier coverage is in place. This type of policy also covers the items being transported in case they are lost, stolen or damaged.
Why courier insurance costs more than a standard policy
When a vehicle is involved in an accident during a delivery for a business without a courier amendment to their personal third party liability insurance policy, the claim will be rejected by the insurance company. In monetary terms this means the employee is responsible for all the associated costs of the accident.
The employer is in no way obligated to assist in terms of monetary payments to help in covering the costs of the accident. The fact that the employer asked the employee to make the delivery is not relevant.
If you are hired as a delivery driver and use your own vehicle, you need to contact your insurance agent and add food courier insurance to your existing policy.
Some employees do provide hire and reward coverage for their drivers. Before being hired know the facts and if your new employer will cover your vehicle while you are working for them.