Whether you are delivering food from takeaways, restaurants or the supermarket, there is no one food delivery insurance solution that suits all delivery drivers.
There are many different factors, risk and levels of cover that you should consider when choosing the right food delivery insurance.
In short, the answer to whether business insurance covers food delivery is ‘not necessarily’.
Food delivery requires a specific form of courier insurance to ensure that both the driver and the vehicle are covered in the event of an accident. Should the food being delivered require coverage, that will require a further specific type of insurance, known as goods in transit insurance.
Throughout this article we’ll deep-dive into the worlds of both business insurance and food delivery, giving you all the information you will need to ensure you are sufficiently insured for any delivery related eventually.
What is business insurance in the UK?
Business insurance is designed to broadly cover the various risks and liabilities that UK businesses face.
There are different types of business insurance policies available, each catering to a specific need or risk associated with the business operation.
These include but are not necessarily limited to:
- Public liability insurance
Whilst not a legal requirement in the UK, many clients will demand that businesses are covered for public liability before allowing work to be carried out.
Public liability insurance protects the business against claims from members of the public for damage to property or injury. Many trade bodies will only accept members with suitable public liability insurance.
- Employer’s liability insurance
This type of insurance is compulsory for any business with employees. Employer’s liability insurance covers costs arising from employee injury or illness.
- Professional indemnity insurance
Professional indemnity insurance is another voluntary insurance for businesses in the UK in that it is not a legal requirement. This type of business insurance offers protection against claims of professional negligence or errors and omissions.
You can read more on this here.
- Commercial property insurance
Also known as buildings insurance, commercial property insurance is not required but will be insisted upon by most mortgage providers. It covers the cost of repair or rebuilding the business premises should the building be damaged or destroyed.
- Business vehicle insurance
Should a business use a vehicle, commercial vehicle insurance will provide coverage against theft, damage and third-party liability.
What insurance do you need to deliver food in the UK?
Food delivery insurance is a blanket term used broadly to describe the range of insurance products either legally required or just highly recommended for food delivery drivers in the UK.
Every vehicle on the UK roads requires third party insurance at the very least. Your options for conventional car insurance include:
Comprehensive Insurance
Fully comprehensive insurance offers ultimate peace of mind for delivery drivers, as it will cover damage to your vehicle in the event of an accident, fire and theft, as well as covering damage to a third party.
Third Party (TPO) Insurance
Third party food delivery insurance will only cover the damage to a third party, not your own vehicle. These policies are often cheaper than comprehensive policies, however they do not offer as much financial protection.
Third Party Fire and Theft (TPFT)
A TPFT insurance policy will provide the same level of cover as a third party policy, plus offering coverage for fire and theft of your vehicle. However, unlike a comprehensive policy, it does not cover damage to your vehicle.
However, this sort of Social, Domestic and Pleasure car insurance policy will not provide cover for food delivery by itself.
Food delivery drivers require a specific type of courier insurance that will cover the vehicle for the delivery of goods between various collection and drop-off points.
Food delivery drivers should consider the following two types of insurance for their specific requirements.
Courier Insurance
Courier insurance will provide insurance cover for the vehicle being used for food delivery. Courier insurance is needed if you are paid to carry other people’s goods or materials, such as food.
If you do not take out courier insurance and have an accident whilst delivering food, your insurer is unlikely to pay out in the event of a claim.
Courier insurance is separate from haulage insurance, which typically covers longer distance deliveries between set destinations, whereas courier insurance covers the perfect level of cover for food delivery drivers and it covers typically shorter journeys between various collection points and destinations.
Goods in transit insurance
Goods in transit insurance will provide insurance cover for the contents and goods that you are carrying.
This is not a legal requirement for food delivery drivers, and many will decide against it if the value of the items you are covering will be low.
It is highly recommended for courier drivers whose transit is of high value.
When working for a food delivery service or platform, you yourself may be covered by the insurance of the platform.
However, it is important to note that this usually covers you as an individual, rather than the vehicle you are using.
In many cases, the responsibility to adequately insure your vehicle will remain the responsibility of the delivery driver.
What is hire and reward insurance?
The term hire and reward insurance is closely related to the term Social, Domestic and Pleasure which is used to describe the conventional activities covered on a standard car insurance policy.
Some policies will allow food delivery drivers to add hire and reward insurance cover to their standard policy, which will provide the sufficient cover to perform your duties delivering food.
Can you use your business insurance to cover food delivery?
As both ‘business insurance’ and ‘food delivery insurance’ are blanket terms to describe broad categories and subcategories of insurance, there is no one-size-fits-all response to whether business insurance will cover food delivery.
Some business insurance packages will cover the courier activities that food delivery requires, whereas others will not.
It is important to understand the legal requirements of the insurance needed to deliver food in the UK, which is courier insurance.
When either checking your existing policy or searching for a new business insurance policy, check to see whether the policy will provide courier insurance of the sort you require for your business activities.
To find the most cost effective food delivery insurance, make sure to use Pricepoint Compare!