What Insurance Does A Food Courier Need?
A food courier needs a special form of hire & reward (H&R). Regular social, domestic & pleasure (SD&P) vehicle insurance does not cover food courier driving. According to NimbleFins, driving that involves delivery in return for payment, such as food courier work, needs to be covered by H&R insurance. In addition to couriers, taxi drivers also need this type of insurance (i.e., delivery people in exchange for the fare).
In addition to the proper vehicle insurance, a food courier might want coverage for third party liability. A public liability insurance policy will protect against injury or damage to third parties and their property when the driver is not driving.
For instance, consider a food courier who is carrying a stack of pizzas and bags across the street on their way to a customer’s front door, and they don’t see an oncoming car. The car has to swerve to avoid hitting the driver, and in the process, crashes into a lamppost, causing injury to the driver. The food courier could be blamed for causing the accident and need to pay compensation to the driver.
Public liability insurance can help mitigate the financial repercussions of such a scenario, such as paying legal fees and the compensation amount to the injured party.
Food courier insurance
Food courier insurance is one of the trickier types of insurance to buy in the UK. Many providers are not keen to insure couriers, especially food couriers. This is because food delivery work is known to be riskier, and therefore the odds of a claim are higher. As a result, insurers are less inclined to offer courier insurance and, when they do, often charge multiples of what a basic SD&P insurance policy would cost the driver.
In fact, many drivers are quoted premiums of £2,000 a year or more for food courier insurance. These all-inclusive, annual plans would typically all driving, both personal and work. That is, they include the SD&P and H&R elements of cover.
For motorists wanting to work only part-time or for a short period, this cost can be prohibitive. Luckily, there is another option: pay-as-you-go courier insurance.
Pay as you go courier insurance
Those working part-time or temporarily as a courier might save money buying a suitable pay-as-you-go (PAYG) courier insurance policy. The reason for this is that annual vehicle insurance policies can be quite expensive and can be a result. As a result, drivers who don’t need coverage for an entire year might find it more cost-effective to buy a PAYG plan.
PAYG courier insurance is ‘extra’ vehicle insurance that is meant only to cover hire & reward driving. A motorist still needs their basic SD&P vehicle insurance to cover their personal driving. However, SD&P insurance does not cover courier work, which is why extra coverage is needed.
Zego is a market-leading provider of PAYG courier insurance in the UK.
One major challenge of PAYG courier insurance is that many of the large car insurance companies in the UK do not permit their policyholders to work as couriers and buy top-up PAYG insurance. Any driver wanting to go this route will need to declare their new job to their current SD&P insurance company and get permission to get PAYG courier cover. Failing to do so could mean the SD&P insurance company will invalidate their policy, leaving a driver uninsured. This could occur retroactively after a claim is made if the insurer finds out about any undeclared courier driving. The risks are not worth it.
Getting insurance quotes for food delivery
As with most types of insurance, the best way to secure a discount on notoriously-expensive courier insurance is to compare quotes from many providers. There are a few ways to go about this. Using a specialist comparison site can provide multiple quotes in a short time, for instance. Those having trouble finding affordable cover online might want to talk with a specialist broker. Brokers often work with several providers, so they can do the legwork of contacting and getting quotes from more companies.
One disadvantage of using a broker to get food delivery insurance is that they charge extra fees. However, many drivers find it worth the money. Brokers can provide colour on the market, such as whether or not the quotes are reasonable when compared to other, similar driver/vehicle profiles.
Keep in mind that some smaller specialist providers are not present in any comparison site panels. Therefore it can be worth taking the extra time to check quotes with a couple of these businesses as well. They might not always compete on cost but might deliver an excellent, personalised service that might make sense for some couriers.