After all, your personal insurance isn’t going to pay out.
Were you aware of that? You NEED to be aware. Now.
As in, don’t deliver another single freaking order until you know you are covered.
I am dead serious. Either get your insurance updated now so you are covered, or quit the independent contractor gig effective immediately.
It’s not worth the risk. The few dollars you earn doing this aren’t worth what it can cost you not being covered. Stop now, get it resolved.
Grubhub, Postmates, Doordash etc are leaving you hanging in the wind.
Did you know that none of these companies provide you any insurance at all while you are driving? Were you aware that personal insurance will not cover you if you are simply logged in as available for delivery?
In my opinion, this is absolutely criminal. They require insurance, and that leaves drivers thinking that they have all they need. They KNOW that personal policies do not cover you in insurance, and they don’t tell you about it.
When have you ever seen anything from any of these companies that says that personal insurance isn’t going to cover you? When have they ever warned their drivers of this?
Personal policies exclude delivery work
If you have just a normal insurance policy, go pull it out or pull up a PDF. Look for the section called exclusions. Search for terms like ‘livery’ ‘commercial use’ or delivery. I’ll almost guarantee that delivery work is specifically excluded.
What that means is, if they know you were even logged in as available on a delivery app, they will deny coverage. They have the right to do that, because they specifically stated it in their policy. It’s not a matter of them weaseling out of what they should pay. This isn’t to defend insurance companies, they are good at being weasels in so many other ways.
The delivery companies do not provide coverage for you while on delivery.
We think that hey, we’re doing work for them so they’ll have our backs, right? That’s the problem: they don’t have our backs. They don’t cover us in any way.
Postmates will provide liability coverage from the moment you accept an order.
There is no coverage for you. Your car is not covered. Your injuries are not covered. There is only coverage for any one else’s property or injuries that you are liable for. If the accident happens while you are logged in available, there is no coverage at all from Postmates or your insurance.
Doordash will provide liability coverage as long as you have food in your car
If you are on your way to the restaurant, you are not covered. If you are available, you are not covered. By Doordash or your insurance. There is no insurance for you. Doordash did add coverage for injuries and limited disability if it happens while on a delivery. They don’t define ‘on a delivery’ but considering their liability statement is limited to when you have food in your car,
Grubhub provides no insurance at all.
You are completely uncovered as long as you are available to take orders. There’s no liability insurance, there’s no insurance for you. Your car isn’t covered. You aren’t covered. It’s pretty much the same thing as driving without an insurance policy at all.
Uber Eats is an exception.
They do provide coverage for you, with I believe a $1,000 deductible, and liability coverage while you are on the way to pick up food and while you are making a delivery. There is still a gap with them, during the times you are available for deliveries but not enroute to a delivery.
So what happens if I’m not covered?
Hope you got lots of money.
If you owe money on your car, you will have some responsibilities here. The lender is likely going to require you to get the car fixed, and that comes out of your pocket, or they can call the loan due. That means you have to pay it off.
Even if your car is totaled and you can’t drive it any longer, you still have to pay for it.
If you are liable for damage or injuries to someone else, they can get a judgment against you. What that means varies depending on where you live and what protections are there in your state. That could mean that they can come after your savings and your assets. That means you could lose your house if you own it. That means that you could be put on a payment plan. It could force you into bankruptcy, and there’s no guarantee bankruptcy will protect you.
This is serious crap people. Stop driving right now until you know you are covered.
The insurance company doesn’t have to know I’m on delivery, right?
Are you really that willing to take that kind of risk?
Keep this in mind: If you deny that you were on a delivery, especially if you cover that up, if the insurance company finds out that you were on a delivery you are now at risk of insurance fraud charges.
How are they going to find out?
Certainly, they would never know, right? I know it seems that way, however there can be all sorts of indicators. Does the police report indicate there were delivery bags in the car? Did you have food with you? Did it happen while pulling out of a restaurant parking lot? There are plenty of things that could indicate you were on delivery, enough so that it could lead the company to investigate.
Couldn’t I just hide the food?
I’ve seen some people in forums who say they keep the food in the trunk for that very reason. No one’s going to see the food then.
I know that this is a severe example but it paints a pretty graphic picture of the fact that in a bad enough accident, you don’t have a chance to ‘hide the evidence.’ If you survive the accident (and unfortunately the driver here did not) the last thing on your mind is to think about whether the insurance company is going to know you were on delivery.
The picture above is from a news article about an accident in Lansing, Michigan. This accident happened early morning, so it is unlikely the driver was on delivery. However, I can guarantee that just the presence of the delivery bags is enough for the insurance company to investigate whether or not the driver actually WAS on a delivery. When the accident is this severe, when there is a LOT of money on the line, you can guarantee that the insurance company will investigate to find out if they can get out of paying a settlement.
Someone replied in a discussion on this that the driver is dead, so no one is going to care about insurance here.
Folks, think about this.
If this were your family member, do you think it just ends with their death? Do you think it wouldn’t affect you if the insurance denied a death benefit or if others affected by the accident came after the estate?
Get the right insurance
EDIT (added February 19, 2020) – My goal isn’t to sell insurance, but to make sure you ARE insured properly. I published this article that goes a little more into three steps on how to get the right insurance as a delivery driver for Grubhub, Doordash, Postmates and others. Make sure that your assets, your family, your estate are protected if the unfortunate ever happens.
Check with your insurance
I mentioned above looking through your policy and looking for those exclusions. As soon as you see anything about delivery, livery, or commercial use, you know already that you are not covered. You know that you have to do something different. If you’re not sure, call your agent or your insurance company and ask them specifically if you would be covered while being paid to do delivery work.
If the answer is no, ask if they have a rider or endorsement that they can add. State Farm is one that I hear often where people have that option. Honestly, it varies by company and by state.
If they do not provide any options, you have only two choices: Change insurance or quit driving. That’s it. Driving uncovered is just not an option if you are in any way any type of responsible human being. You are putting yourself, your family, and others at risk.
You are a business owner. That should translate into being a responsible being.
Check into Rideshare and Commercial Options
Some rideshare policies will cover delivery. SOME. Not all. With the explosion of Uber and Lyft drivers, more options have come available to provide insurance that covers the gaps in the rideshare coverages. You need to specifically ask if the policy covers delivery work.
I know, we’re not doing rideshare. The reason that I even bring it up is that ride-share and delivery both fall under the ‘livery’ classification. That is why some such policies will cover delivery work.
There are a number of commercial options that provide coverage for delivery work and that are reasonably priced. My policy was only about $40 per month higher than my original personal policy. Many of the major carriers like Geico, Progressive, and Esurance have options. Availability can vary by state, but search for “Commercial courier auto insurance in (state name)”
One option that might make that search easier is CommercialInsurance.Net, offering a variety of options for commercial insurance. One thing that is helpful is that they provide options in all 50 states. This links is an affiliate link and revenue generated does help keep this website operational.
Make a smart business decision here.
Folks, a few extra dollars for insurance should not be a deal breaker here.
I get the sense in the driver forums that people don’t feel like they should have to pay extra for insurance for their jobs. But you have to remember, this isn’t a job. Maybe it should be, that’s a totally different topic of discussion.
You are running a business. Don’t leave your business vulnerable here. One of the worst things you can do for your business is to leave it unprotected.
Get the right insurance before you deliver another item.