No longer does a restaurant have to provide delivery services.
Food delivery services like Uber Eats and Door Dash have made a business of providing consumers with an easy way to get food from their favorite restaurants right to their home. These services will provide the driver for these restaurants. Of course, those who are thinking about delivering for one of these services should stop to consider the insurance implications before doing so.
New Jersey has a law that requires ride hailing companies to provide certain coverages and limits to drivers. However, the state doesn’t have a similar law that applies to food delivery companies. This has led to much more variability in the amount and availability of coverage for food delivery drivers.
Many personal auto insurance policies do not provide coverage if the driver is using the car for food delivery.
This means there is no protection for the driver’s injury in an accident, the driver’s (for owners) liability for an injury or property damage to others caused by the driver and damage to the driver’s vehicle. If that is the case, where might the driver find coverage?
The first thought would be to look to the food delivery services for which the driver is driving. Many of the food delivery services provide insurance on behalf of the driver, which may include coverage for bodily injury and property damage liability, uninsured/underinsured motorists and contingent comprehensive and collision coverage. You will find limitations and restrictions in these policies; for example, coverage may vary depending on whether the driver actively is delivering food or available to receive a delivery request. Generally, if comprehensive and collision coverage is provided by food delivery services, it applies only if the food delivery driver has that coverage on his or her personal auto policy.
If only limited insurance coverage is available through the food delivery services, where can a food delivery driver find additional protection? There are two ways in which drivers might protect themselves when acting as food delivery drivers. First, many insurance companies offer an endorsement covering delivery services (including food) for additional premium. Second, you may wish to look at purchasing a commercial auto insurance policy. Typically, these policies will provide more robust coverage, but can be more expensive than an endorsement on a personal policy. If you are thinking about acting as a food delivery driver, please contact our office to discuss your insurance options.
