Food Delivery Insurance
You might be wondering does business insurance cover food delivery? Is there such a thing as Food Delivery Insurance? The answer to that is yes and no to the first question because it is based on your cover.
One of the risks associated with food delivery is being damaged or lost in transit. When you deliver a product to a customer that becomes damaged or lost, then the company must provide compensation for its cost to replace or repair this item.
fooFor a company to have this protection themselves, they need to agree with their carriers which states exactly what will happen if they lose or damage your product during delivery.
In this post, I’ll break down the ins and outs of food delivery business insurance.
Does Standard Business Insurance Cover Food Delivery?
No, a standard business insurance policy does not cover food delivery. A standard policy does not even cover you while your drivers are on their way to pick up or drop off an order because it does not cover you for any transportation.
A standard business insurance policy covers you for any property damage or bodily injury caused by your business. If you run a food delivery company, it does not cover you if someone gets sick from eating the restaurant’s food because of mishandling during transportation or any such scenario you can think of.
To legally deliver food, you will need to have a specific type of business insurance – Hire and Reward insurance (food delivery/courier insurance). This sort of insurance covers you if your employees are on their way to pick up or drop off an order.
It is important to note that Hire and Reward cover is limited to coverage for exchange of property and does not cover your employee while operating the insured vehicle, nor does it cover you for the damage or theft of a vehicle.
You can read about Uber’s insurance requirements here.
For this reason, it is also necessary to have product insurance as well as public liability insurance. Product insurance will cover you if your food does not get to its destination due to damage or any other issue with the delivery vehicle.
Public liability insurance covers you from claims made by customers or employees who get injured on your business premises or while they are in transit because of something like slipping and falling down some stairs outside.
Remember, it is always better to have the cover and not need it than to need it and not have it.
What is covered by food delivery insurance?
As mentioned above, food delivery insurance includes coverage for food spoilage, theft or loss, and glass breakage. It does not cover damage from delivering them to your car outside of the package.
Does My Current Business Insurance Cover Food Delivery?
Many insurers offer a combination for food delivery businesses, but you always need to speak with the insurer to make sure your needs are catered for.
If you did not specify your needs with your insurer when taking out your policy, then chances are your current business insurance does not cover you. You will need to contact them and find out or check over your policy documents.
If your business insurance does not cover food delivery, you could be liable for any claims made by your customers.
How to get food delivery insurance?
A quick search online for “Hire & Reward Insurance” will bring up many options for you to choose from.
Do not forget that the cover offered by your insurer does vary depending on where you are based and what industry standard is in place there. You will need to check with them if they offer food delivery insurance specifically.
Examine the different policies in detail. Think about what you are trying to achieve with your insurance policy, not just whether it is cost-effective. Insurance is an essential part of business and should be taken seriously. You must look at the price and the terms and conditions of the policy before purchasing or agreeing to it.
Once you are satisfied, give them a call!
You may get a better rate by speaking with a human rather than doing it all online.
Remember to compare rates with different insurers and ask for several quotes before deciding on the policy you will be taking out. You can also get some free advice by speaking with an insurance broker or agent who may offer you a better deal if they are happy to take care of your insurance needs in full.
Other useful links about business insurance:
Insurance for Sole Traders
What is Shop Insurance?
Hire and Reward Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: