We are finding more and more clients are considering taking on work from companies like:
DoorDash
Uber Eats
Instacart
Amazon Flex/Amazon Fresh
Lyft
Uber
Pizza delivery jobs
And many others that require you to deliver people, food, or products using your personal vehicle.
There is a significant potential risk you should be aware of. First, many personal auto insurance carriers do not cover you and your auto when you are working. Why? Because many insurance carriers consider deliveries to be a commercial or business risk. So, what happens if you are driving for one of these companies and you get into an accident? Very likely the accident will not be covered. In addition, the carrier may drop your policy for not following the guidelines of a personal auto policy leaving you uninsured going forward.
What if the employer provides the insurance?
We strongly recommend that you ask to review the coverage that they provide in detail, as the information on their website may not be comprehensive. For instance, some of them only cover you when you are transporting their products. This means you may not be covered when you are driving to get the products or returning back after the delivery. As a result of this scenario, you’d be uninsured for significant portions of the job leaving you at a greater risk.
What can you do if the employer does not provide insurance?
Talk to your insurance agent before starting the job. They can review if your current policy offers any relevant coverages. There are a small number of carriers that may offer add-on coverage for these driving services. Your agent can help clarify if your carrier is one of those few. Next, they can see if they offer any other carriers that provide coverage on a personal policy.
The best option may be to get a business auto policy for this type of work. It may be more expensive but will be more appropriate for the situation. It may be a good solution if this is going to be your main source of income. Also, know that typical personal umbrella policies may not extend coverage for the use of your personal vehicle for business.
If you have any additional questions, please feel free to visit our website at keslarinsurance.com or give us a call at (603) 273-0953. We are always happy to be a resource for you.
