As we discussed in our last blog, 5 Ways To Cut Costs Or Make Money While Social Distancing, there are many people who have picked up the mantle of side hustles and second or event third jobs in order to make ends meet amidst the furloughs and closures of the coronavirus pandemic. One such job is delivery services.
However, before starting this type of job, it is important to check if your new employer will be providing you with commercial car insurance coverage or if that is something you will be required to get on your own. You should verify if your car insurance covers commercial use; some carriers are have extended personal coverages for those who are recently employed as delivery drivers and personal shoppers.
Common Delivery Service Employers & Potential Commercial Car Insurance Coverage
Drivers under Amazon Flex are required to keep their own car insurance coverage, but they are also provided with an Amazon Commercial Auto Insurance Policy—except those in New York, who have to purchase their own commercial. Amazon’s commercial auto insurance policy includes liability and uninsured driver insurance. It can also include collision and comprehensive coverages, but this coverage offer is contingent upon you having the same coverages.
National pizza companies are individually franchised, so commercial coverage may vary from owner to owner. It is common for these types of businesses to elect non-owner car liability insurance, if any coverage is elected. While this provides some coverage, drivers may want to contact their insurance agent to see if they should update their policy for commercial use coverage.
Food/Grocery/Prepared Meal Delivery
A commercial auto insurance policy is included for drivers with employment. Drivers are covered up to $1 million in property damage liability and bodily insurance; however, for coverage to take effect, you have to be in “active delivery”. This means if you have completed the delivery, there is no coverage. Other exclusion to their policy includes if you borrow a car to make deliveries, you are not covered. Also, the DoorDash commercial auto insurance policy only takes effect after your own personal coverage has first been exhausted.
Drivers under GrubHub are required to have their own commercial car insurance policy.
InstaCart shoppers and delivery drivers are considered independent contractors and are required to have their own car insurance as required by law.
Similar to Amazon’s commercial car insurance policy—it covers up to $1 million in property damage liability and bodily injury, but also only after your own policy is first exhausted.
Drivers in all states except for New York, are provided with $1 million in liability coverage during delivery—including the time you accept the delivery assignment until you complete the delivery. The UberEats commercial auto insurance includes collision and comprehensive cover (if you have this yourself as well) with a $1k deductible. As an added bonus, if your own insurance policy does not cover you between your deliveries then Uber’s will—$ 50,000 in bodily injury for one person or $100,000 for multiple people per accident and $25,000 in property damage.
If you are considering taking on delivery services as a side job or as full-time employment, be sure to fully investigate the commercial insurance policies provided to you as an employee or contractor. Then, contact your insurance agent at Magruder Agency to see if you need additional car insurance coverage to close the gap in what you have and what is being offered.