A lot of couriers sign on with companies like Postmates and go about their work assuming that Postmates will have their back if anything happens
Do NOT make that assumption. You are an independent contractor, not an employee. That means that in most cases you are on your own if anything happens to you. It also means that you are not covered by worker's compensation. Understand that as an independent contractor, you do not have the protections most employees would have.
This article will delve into the most up to date information we have on what the different coverages are with Postmates.
Does Postmates Offer Insurance For Your Car?
Postmates does not provide any additional coverage that will cover you in a car accident. As of August 27, 2019, their website addressed insurance by stating that drivers are required to provide their own coverage and that “Property damage sustained to your property in an accident are your responsibility and should be addressed by your personal insurance carrier” (emphasis mine).
This is a huge problem for most couriers. Most personal car insurance policies will not cover you in an accident while you are logged on to do delivery work for a third party app. That means that your insurance won't cover you, and Postmates won't cover you. Be very clear on this: if they are able to identify that you were logged in, not just on an active delivery, they will not cover any claim. If you are delivering for Postmates you need to make sure you have insurance that covers you.
Do NOT be stupid and rely on thinking you can just not tell anyone you are on a delivery. That's too big a risk to take.
Postmates does state they provide excess coverage for liability while on an active delivery. In other words, if your insurance does not cover damage you cause to another party, they may step in. Understand that this provides no coverage for you or your vehicle. It also presents a gap in coverage where if you are logged in but not on an active delivery, neither Postmates OR personal insurance will cover you.
Make sure you have the right insurance. Find out if your policy has a rider or add-on that will cover delivery work. If not, look into rideshare policies that might also cover delivery, or commercial insurance. Do not drive around uncovered!
Does Postmates Offer Insurance For Accidental Injury While Working?
As of the writing of this, Postmates provides no coverage for any occupational accidents that happen while on deliveries. If you have a fall or are injured in any way on the job, you are not covered by them. In fact their legal agreement states that you agree to make sure you are covered, on your dime, for ” workers’ compensation insurance, and/or occupational accident insurance. ” In other words, if you get hurt while delivering for them and don't have your own insurance, you are screwed.
Postmates did announce that they are providing Occupational Injury and Accident Insurance, effective October 1, 2019. This gives them an advantage over a lot of gig companies, and provides coverage for accidental injury, short term and long term disability payments related to an accident, and benefits for death, and dismemberment. Coverage is provided while on an active delivery, though they do not define whether the delivery becomes active the moment you accept an order, or the moment you pick up the order. Accidents that happen when logged in but not on a delivery are not covered.
Does Postmates Offer Insurance such as Health and Life Insurance?
Postmates does not directly provide any of these insurances. They do partner with Stride and Perkspot, which are marketplaces for insurance policies. I'm not sure that there are any real cost benefits from going through those partnerships. However, the bottom line is that you are on your own. If you do not have these coverages, you might check into their options along with the open market place.
The Bottom Line? Make Sure You Are Covered.
Does Postmates offer insurance? They do a better job than most. However, for the most part, you are on your own. Understand which coverages you need. You absolutely need to make sure your car insurance will cover you on deliveries. Postmates will have accident insurance on October 1, but there are gaps. You want to make sure you have your own coverage. Make sure you understand your own insurance situation and don't rely on Postmates to have your back.
