Will Your Business Insurance Cover Food Delivery Work?

​Making sure you have the right insurance is crucial if you want to begin a food delivery service.  If you already have insurance, consider whether your current coverage can cover your work in the food delivery industry.

Business Insurance
Business owners typically have business insurance that covers any vehicles used for business purposes, such as traveling between locations for meetings or business-related tours. If workers use their vehicles for work, their insurance may protect them in the event of an accident.

One significant exception is when someone, such as delivery personnel, provides goods or services in exchange for payment. Simply put, your business insurance does not provide coverage for food delivery work.

Coverage for Food Delivery Work
It would be best if you had Social, Domestic, and Pleasure (SD&P) and Hire and Reward (H&R) insurance policies to use your car for food delivery or courier work.

Social, Domestic, and Pleasure (SD&P)
An insurance policy known as Social, Domestic, and Pleasure (SD&P) enables you to take private trips in your car. It protects you from regular activities like going to the store, seeing relatives, or traveling between home and the workplace. It typically prohibits using your car to deliver food or packages or exercising professional driving. Therefore, a Hire and Reward (H&R) policy is required.

Hire and Reward (H&R)
You must have Hire and Reward (H&R) insurance in place if you deliver food or packages for payment while working in the food delivery industry. Along with your primary Social, Domestic, and Pleasure (SD&P) policy, this additional coverage protects you while working. You must have this additional insurance coverage because your SD&P insurance does not protect you if you make food deliveries or work as a courier.

Conclusion
In your search for additional insurance covering this line of work, you're likely to run into a wide range of terms as a business owner aiming to get into the food delivery business. Understanding what coverage you need and what coverage you're getting can be challenging when your policy papers are filled with so many technical and specialized terms. 

Finding the best coverage for your needs should ideally be done through independent research and expert assistance.

At Appletree Insurance, we strive to provide our clients with affordable and comprehensive policies. We will always go all out to satisfy your demands. To learn more about how we can assist you, don't hesitate to contact us at (603) 881-9900 or CLICK HERE to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!