In the world today, many rideshare motorists also choose to do deliveries to supplement their income. Such drivers need to ensure that they are covered by separate insurance policies while carrying out both duties. Being a delivery driver also has its risks. Learn more about this as we continue this discourse below.
Level Of Risk Changes
Insurance is particularly focused on risk management and control. This means that insurance policies are structured to cover various levels of risk. When the risk goes beyond what is agreed, the policy no longer covers the situation.
While making deliveries, the following are certainties:
- Delivery drivers tend to make more stops than they would ordinarily do with just ridesharing;
- Delivery drivers also carry goods of varying value which will surely need replacement in case of damage, accident or theft.
It is obvious that the risk for a rideshare driver also doing delivery increases/changes. But can ridesharing insurance policies still cover this situation? It is apparent that most insurance companies will opt out because the risk level has changed.
Let us review 3 popular types of insurance that may help:
What About Hired/Non-Owned Insurance?
This type of insurance is actually quite common and is designed to be provided through the delivery driver’s company. This is the type of insurance that covers most pizza delivery drivers. Based on the agreement reached by drivers and the company, the payment may be made either by the driver or the company. Companies like Postmates and Doordash provide commercial auto liability.
Doordash provides up to $1 million that covers from bodily/property damage to third-party (pedestrians or other persons) loss arising out of an auto accident while making a DoorDash delivery in the United States. Postmates on the other hand provides up to $1 million for bikers and drivers while on duty and accidental occupational liability which is a $50,000 limit covering Postmates’ medical expenses for injuries incurred while on the job – this is currently unmatched by any competitor.
However, this type of insurance has not put the goods carried into consideration. Hence, it is safe to conclude that this arrangement might not be the best but it partially solves the problem.
Commercial Insurance is a choice you could consider if you enjoy making deliveries more than rideshare driving. To do this, you must get a smart agent who would be able to get exactly what works for you.
Another possible type of insurance for delivery drivers is Cargo Insurance. When making deliveries, most companies will transfer “ownership” of the packages or product to the driver. This will obviously put the driver at risk in the case where anything happens to the cargo ( damage or theft). If either were to occur, the delivery driver will likely be liable for the value of the package. This means that drivers need to ensure that they get a policy that would cover them in such situations. Cargo insurance covers the product to ensure that drivers are safe in the case of an uncontrollable/unforeseen damage.
Being a Delivery driver is a good way to make extra money. Uber drivers who choose to do this need to know the possible risk situations and find a way to mitigate them.
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