In the last few months, online delivery businesses have taken off in a major way. The Coronavirus pandemic has unleashed the Ecommerce beast in almost all industry niches. If data is to be believed, Americans spent more than $11 billion in Pizza deliveries alone in 202-2021.
With groceries, medicines, food items, take outs, pets supplies and other essential and non-essentials getting delivered online, the same has fueled growing and profitable delivery businesses. This means vehicles and drivers that are doing last mile deliveries and delivering to the doorsteps of the customers.
While small delivery businesses can be highly successful entities, one area that they repeatedly tend to ignore is Insurance. In this article, we are going to discuss everything related to hire and reward insurance. If you are a delivery driver or a business that is into deliveries, you should read this article till the end.
List of 7 Important Things Delivery Drivers should know about Insurance
1. There is always a gap between employer’s insurance and personal insurance
While the employer’s insurance will cover your damages from the time you have picked up the order to when you have reached the customer, it will not cover the distance and time you take to drive to the business to pick up the order. While you might think that your personal insurance would do the same, there are loopholes that insurance companies will exploit to deny you.
2. Opting for a Commercial Auto Insurance is your Best Choice
If you do not want to keep running from pillar to post for the claims, you can do something relatively straightforward. Opting for commercial auto insurance will help you cover the different types of damages. It will help you plug the gap as had been mentioned in the first point. While you might pay higher premiums, this will help in covering complete protection.
3. Commercial Insurance for Delivery Drivers and Businesses is Expensive
Insurance companies see higher risks when they are extending insurance plans to delivery businesses. This is simply because delivery drivers and vehicles are more likely to get into accidents and incur damages as opposed to private vehicles. A higher risk assessment means that premiums are higher. This is true for nearly all insurance providers in the industry.
4. Personal Auto Insurance will not cover Delivery Related Accidents
If you have a personal vehicle that you are using for business-related activities, you might experience a number of problems. For starters, governments all over the world require commercial license registrations for vehicles that are used for businesses. Insurance companies deny coverage if they know that the accident happened as you were using the vehicle for commercial use.
5. Delivery Drivers are Responsible for the Damages suffered to Goods
Personal insurance is not going to cover the damages that the goods and products would have incurred from the accident. Business owners need to ensure that their products are covered by a specific type of insurance policy that is commercial in nature. Unless delivery drivers are not covered by the same, they would be required to pay for the damages from their own pockets.
6. Businesses need to be held Responsible and Liable for Delivery Drivers
While small delivery businesses usually rely on personal vehicles, it is always a good idea to use commercial business-owned vehicles. This is simply because there would be fewer issues relating to harassment and denial of claims. This is something that most experts also recommend. This helps in coverage, makes claims easier, and keeps everything organized.
7. Get help from Certified Experts that offer Commercial delivery Driver Insurance
The more you read online, the more confused you are likely to get. Insurance companies that are all about making profits rely on complex strategies to mislead customers. This is why delivery businesses and drivers should research platforms that can offer credible information and policies that are helpful. Taking help from the experts is the best way forward in commercial insurance.
The Bottom Line
With the delivery industry booming, aspects like insurance will start playing a major role in the near future. Law enforcement agencies like the traffic police are also becoming very aware of insurance violations that are taking place because of commercial delivery vehicles.
If you have any other questions about delivery driver insurance or want clarifications on any of the points mentioned in the article, let us know in the comments section below. We will be more than happy to assist you in the same.