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Does your Car insurance cover you if you decide to work in food delivery?

With so many of you, your friends, family or neighbors being sent home with or without pay more than likely you may know someone that is thinking about working for a food delivery business

There was a time when we only had pizza delivery but now you can get items delivered from national and local stores such as CVS, Langenstein’s, Office Depot, Petco, Rouses, Target, Winn Dixie and others by using an app

and the food delivery companies are now hiring such as Instacart, Shipt and Waitr

CVS just released an article of hiring 50,000 workers

Before you sign up and start working you need to know do you even have coverage?

Your personal car insurance policy will exclude food delivery, business use or any type of ride sharing

Get into an accident delivering food for a company “business use” and it is possible you are paying all claims out of pocket unless you purchase the endorsement or add on coverage for your personal auto insurance policy

You need to purchase a Rideshare Insurance Endorsement

What is Rideshare coverage?

Two types of business use…Rideshare or Delivery

VEHICLE USED FOR RIDESHARE
The transportation (for compensation) of goods or people through Uber, Lyft or other drive-for-hire services

TIP: If the business uses an app and does not have a physical location this is the endorsement you need

VEHICLE USED FOR DELIVERY
The pick-up or delivery of goods (newspapers, pizza, other food/items, etc.), or the transportation of people (limousine, taxi, etc.)

TIP: If you work for a company that does not use an app (uber, lyft, instacart, waitr) and they have a physical location in your city

RIDESHARE ENDORSEMENT vs COMMERCIAL AUTO POLICY

An example here is the local poboy restaurant now wants to offer lunch delivery and they send the employee out in their own car to make a delivery

The restaurant owner would need hired and non owned auto insurance to protect their business from an auto insurance claim and the employee driver would need a commercial auto insurance policy as the add on coverage on a personal auto policy would provide no coverage

Here are a few companies that offer the add on coverage to your personal auto policy

  • Allstate
  • Geico
  • Progressive
  • State Farm

These companies can offer an add on endorsement to your personal auto policy which can range from 5%-25% a month increase

About the Author: Steven Elkins
Steven Elkins is the vice president of CTG Insurance.

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