Growth in UK Food Delivery Insurance
The food delivery service business in the UK has grown rapidly in the past few of years and is expected to continue. It is part of the ‘on demand’ services the public is now requiring from businesses. To stay competitive in this business sector, a business must provide what their clients need while still protecting their business. This is why the right food delivery insurance is required. By using this website as a reference you will know what you need so you can be protected with the right coverage and pay for only what you need.
What is Food Delivery Insurance?
Food Delivery Insurance falls under the category of courier insurance. This type of insurance is required when transporting items from a third party establishment to a third party client. This type of insurance covers the delivery vehicle and the contents or items being transported.
Can you deliver food with car business insurance?
It is important to note that standard car insurance will not cover for delivery food or takeaways, even if you have “business use” in your policy. For proper cover within the law you need a form of hire and reward insurance which can be referred to as hot food delivery insurance. Why? Because providing a delivery service particularly one that is time dependent increases your risk profile in the eyes of the underwriter. This extra risk is not covered by standard car insurance.
The types of vehicles that are used in the food delivery industry include;
Does my business need food courier insurance?
The answer is yes if your business is making food deliveries. This can be the restaurant itself that owns a fleet of delivery vehicles or a third party business that operates the delivery vehicle fleet.
The answer is no if you are a restaurant owner and a third party business delivers your food to your customers.
The easiest way to determine if you need courier insurance is to ask one question. Who owns the vehicles making the deliveries? The business that owns the vehicles is the one who needs to have the courier insurance. This includes private Hire and Reward drivers who use their vehicle to make food deliveries.
What are the types of food delivery vehicle Insurance?
All motorised vehicles are required to have at a minimum of Third Party Insurance to operate legally on the road in the UK. For food delivery vehicles the minimum is Third Party Courier Insurance. This covers the vehicle along with the food items being transported. The types of vehicles that require this minimum cover include cars, vans, motorcycles and scooters.
With third party courier insurance, the vehicle repairs are not covered if it is involved in an accident. Because of that many businesses cover their vehicles with comprehensive courier Insurance with a Collision add-on. This makes it possible to have minimum bills from repairs to bring the vehicle back to being roadworthy so it can continue to make deliveries after it has been involved in an accident.
With courier insurance not only are the food items being transported included in the policy, but also protection with public liability coverage. The liability coverage protects the business if a third party makes a claim that you or your employee damages their property or cause them to be injured.
For those that use a bicycle, courier Insurance is advisable. This allows for the food to be covered along with being protected with Public Liability Insurance.
What Reduces the Cost of Food Delivery Insurance?
What is the average price of food delivery insuranc in the UK?
The range for a commercial vehicle insurance policy is from £700 to £1200 annually. Courier Food Delivery Vehicles are considered commercial vehicles and will typically fall into this range. Add-on to the policy will cost an additional £75 to £250 per extra added.
These prices are national averages that include London with the highest rates and smaller rural villages with the lowest rates.
The vehicles with the lowest rates are Scooter and Motorbike.
We can arrange other food-based insurance
A huge demand exists for insurance associated with the UK food industry. We can provide multi comparative quotes for the following:
What is Pay As You Go Courier Food Delivery Insurance?
This is food delivery courier insurance that costs according to the hours the driver operates the vehicle making deliveries. This is an add-on to a regular vehicle policy when permitted by your insurance company. The biggest limit is that the driver can only make deliveries for 20 hours a week or less.
The costs of pay as you go food delivery insurance can vary. A current rough estimate would be between from £0.80 to £3.00 an hour.
For those drivers that operate more than 20 hours a week, there is 30 hours per day pay as you go courier food delivery insurance. This type of policy costs from £122 to £350 a month
What is Takeaway Delivery Driver Insurance?
This is similar to pay as you go food delivery insurance, but is at a set price annually. It is also not offered as an add-on with all insurance companies. This type is best suited for the part time delivery driver who will work less than 20 hours a week. The cost varies depending on your driving record and type of vehicle you will be operating along with what level of insurance you have.
What Insurance do Delivery Drivers need?
All food delivery drivers need to either have a commercial courier vehicle insurance policy or have an add-on to their social vehicle policy to be covered. Without either of these, the driver will not be covered if they are involved in an accident when making deliveries.
No matter what type of food you are delivery, which can be gourmet meals to fast food, courier food Insurance is required. Many businesses that hire drivers and provide the vehicles also provide insurance. If you use your vehicle to deliver the food, then you are responsible for notifying your insurance company and taking out a fast food delivery insurance policy.
Fast Food Delivery Insurance UK
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.
Fast Food Delivery Methods
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 takeaway may employ one of the following methods or a mix.
Food Delivery Business Options
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.
Hire and Reward
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 food courier insurance costs more than a standard policy
Reasons to have the correct level of Insurance
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 delivery 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.