3 Things to Know About Food Delivery Business Insurance
Insurance protects us from the risks that we are facing in our daily existence. The expenses obtain from these risks will be covered safely making it an important part of our financial planning. Whether it is personal or on the business side, one cannot underestimate the importance of having insurance for protection.
As mentioned by myfoodsubscriptions in this article https://myfoodsubscriptions.com/food-delivery-service/sun-basket-review-promo/, With the increasing demand for delivery in the Food and Business sector, the risks of all delivery drivers have increased tremendously. These on-the-go drivers face threats such as accidents, injuries, thefts, and other risks while doing their job. That is why business owners need to get an adequate insurance coverage for their delivery team for their protection. For more information, please find below important things to know about food delivery business insurance.
Personal Auto Insurance does not cover damage to the personal vehicle used for delivery.
Those engaged in home meal delivery services often have this wrong impression that a personal vehicle used in delivery services is covered by their personal auto insurance policy. Every insurance company has this special clause in every personal auto insurance policy that specifically prohibits the car from commercial use including deliveries. This clause automatically cancels the insurance coverage if the vehicle is used in the same manner.
In the simplest term, a personal insurance policy is simply personal and not for business. Delivering foods is definitely not classified as personal. These insurance companies know that using a vehicle for commercial purposes increase the risk of accidents and injuries.
Drivers are accountable for damage and injuries when using personal vehicle for delivery.
Using your personal vehicle will make you accountable financially when an accident happens during delivery. This means that the expense in replacing damaged goods and properties will be shouldered by your own personal money. It also means that you will shoulder all the medical bills to the person that sustain an injury during the accident. Again, the use of your personal vehicle during delivery nullifies your personal auto insurance policy.
There is a special type of insurance coverage available for delivery drivers.
Yes, there is an insurance policy that is intended for delivery drivers. This type of policy depends on who owns the vehicle, the driver, or the employer.
For those drivers that use their personal vehicle for delivery, he can purchase a non-owned vehicle liability insurance. This type of insurance policy covers all drivers that use their personal vehicle when delivering foods and other services. It serves as a special addition to the driver’s personal auto policy and will become primary once an accident happens.
A company owner that delivers the goods personally can use another type of policy called a commercial auto insurance policy. This insurance coverage is similar to the personal auto insurance but is taken out by the business instead of the delivery driver. The company owner who happens to be the delivery driver will be the named driver of the insurance policy.
By using the proper insurance policy, it will help ensure the safety of all delivery drivers while doing their job. A safe employee means more profit and revenue to the business owners.