Insurances for delivery apps?
December 2, 2021 9:49 PM Subscribe
A friend is seeking advice for delivery apps like Uber eats or door dash or even cannabis delivery (friendly state). There is a lot of conflicting information online, anything from, "no one purchases commercial insurance." To, "occasional business usage," coverage, to, "you absolutely need it." Any insight?
It's for part time delivery. Assumably, total commercial coverage is overkill, while completely omitting information may not be best either. No human beings are being transported, aside the driver. Help!
It's for part time delivery. Assumably, total commercial coverage is overkill, while completely omitting information may not be best either. No human beings are being transported, aside the driver. Help!
The last couple times I have had to use my normal car insurance, the agent asked me 3-4 different ways if I was driving for Uber or whatever. Unless the service you are driving for provides coverage, or you buy your own commercial insurance, you are driving uninsured.
I don’t know that the current status of Uber insurance is, but many of the apps only cover you when you have people or food in your car- if you are deadheading, that doesn’t count, as far as Uber or whatever are concerned. Your regular car insurance may not see it this way.
posted by rockindata at 3:49 AM on December 3, 2021
I don’t know that the current status of Uber insurance is, but many of the apps only cover you when you have people or food in your car- if you are deadheading, that doesn’t count, as far as Uber or whatever are concerned. Your regular car insurance may not see it this way.
posted by rockindata at 3:49 AM on December 3, 2021
Some of this is going to be location dependent, it may help to share where your friend is.
For example in NYC car services like UBER are all insured and licensed by the taxi commission and carry commercial insurance.
posted by SpaceWarp13 at 4:08 AM on December 3, 2021
For example in NYC car services like UBER are all insured and licensed by the taxi commission and carry commercial insurance.
posted by SpaceWarp13 at 4:08 AM on December 3, 2021
I used to work in personal auto insurance.
If you do not have commercial insurance (either by yourself or through the delivery app or something like that), and you have an incident, your personal auto insurance carrier will not just refuse to cover the incident, but will also use this as grounds to cancel your entire coverage. And an insurance carrier cancelling coverage can make it harder to get new coverage (due to insurance reports that are industry-specific and shared).
posted by Ms Vegetable at 6:38 AM on December 3, 2021 [1 favorite]
If you do not have commercial insurance (either by yourself or through the delivery app or something like that), and you have an incident, your personal auto insurance carrier will not just refuse to cover the incident, but will also use this as grounds to cancel your entire coverage. And an insurance carrier cancelling coverage can make it harder to get new coverage (due to insurance reports that are industry-specific and shared).
posted by Ms Vegetable at 6:38 AM on December 3, 2021 [1 favorite]
Best answer: I am an attorney who has dealt with various drivers of various services. This is not legal advice, nor is it necessarily applicable to your jurisdiction, but merely an idea of what may happen in the situations you describe.
Back when Uber and Lyft were just starting, everyone thought you could just use your regular personal insurance, and it would be just fine. Then, drivers were finding their personal policies voided, and that they may or may not have coverage under Uber or Lyft (or DoorDash or whatever). Depending on the accident and the damages, they were now potentially facing bankruptcy, or paying a significant sum to pay off a judgment because they were operating a business without the proper insurance.
Now, everyone knows or should know (and the driver should be told by whomever they are contracting with) that they need their own insurance to cover deliveries. I understand that some services have deals with insurers to provide the insurance without the driver having to go shopping for a policy or a rider, but I'm not certain.
Ultimately, the answer is the driver absolutely needs to add insurance to cover delivery activities, either through the delivery service or through their insurer. If they are using multiple services, it seems like getting one policy, rather than several, will result in fewer gaps of coverage. I also recommend getting an umbrella policy, to ensure that any accident that exceeds your policy is covered up to $5MM or something. Healthcare is expensive.
posted by China Grover at 7:18 AM on December 3, 2021 [1 favorite]
Back when Uber and Lyft were just starting, everyone thought you could just use your regular personal insurance, and it would be just fine. Then, drivers were finding their personal policies voided, and that they may or may not have coverage under Uber or Lyft (or DoorDash or whatever). Depending on the accident and the damages, they were now potentially facing bankruptcy, or paying a significant sum to pay off a judgment because they were operating a business without the proper insurance.
Now, everyone knows or should know (and the driver should be told by whomever they are contracting with) that they need their own insurance to cover deliveries. I understand that some services have deals with insurers to provide the insurance without the driver having to go shopping for a policy or a rider, but I'm not certain.
Ultimately, the answer is the driver absolutely needs to add insurance to cover delivery activities, either through the delivery service or through their insurer. If they are using multiple services, it seems like getting one policy, rather than several, will result in fewer gaps of coverage. I also recommend getting an umbrella policy, to ensure that any accident that exceeds your policy is covered up to $5MM or something. Healthcare is expensive.
posted by China Grover at 7:18 AM on December 3, 2021 [1 favorite]
Best answer: Basically, this: "Ultimately, the answer is the driver absolutely needs to add insurance to cover delivery activities, either through the delivery service or through their insurer." Companies like State Farm or Progressive are actually adding small endorsements for rideshare or courier, that often don't cost significantly extra. If someone is a courier 15-25/hrs a week, this is the way!
posted by firstdaffodils at 1:44 PM on December 3, 2021 [1 favorite]
posted by firstdaffodils at 1:44 PM on December 3, 2021 [1 favorite]
This thread is closed to new comments.
For any business activity of any kind, "you absolutely need" liability insurance. It protects the public and it protects you.
posted by yclipse at 2:50 AM on December 3, 2021