Since the pandemic, businesses are offering more convenient ways for customers to purchase their products. As technology is ever-evolving and growing, people are taking advantage of the easier and faster way to do things that are typically time-consuming. I know for myself walking into Walmart to get a few items is going to turn into – at the very least – a one-hour project because I’m going to run into Susan, my high school friend whom I haven’t seen in a year; and Sam whose mother just passed; and Daniel who was my 5th grade teacher; and the dog groomer, my aunt, 2 clients, and a partridge in a pear tree. If I’m not feeling social, I dread having to go grocery shopping.
Cue the delivery network platforms! In just one year meal delivery sales grew up to 162% while Americans were quarantined the first year of the pandemic. It rose more slowly in the following years, but meal delivery sales still rose nonetheless. As more people started staying home, others took advantage by profiting from delivering these goods and items to people. Not only do we deliver people via taxi’s, Lyft, Rideshare, Uber, etc; but we now will deliver just about anything to anyone. Multiple chain stores like Walmart, ALDI, Whole Foods, and Kroger are now offering a low-fee delivery service straight to your door step. So if you don’t want to chat with Daniel, Susan, and Sam; sit down and let the groceries come to you! Also, don’t feel like making a meal with said groceries? Open up the Uber Eats, or DoorDash app and get a hot, fresh meal delivered while you’re at it! Whether or not shopping from our couch is good for our health, there is no question that these delivery services are easy and fast.
It’s great that we don’t have to go to the store or a restaurant if we don’t want to – but somebody has to go to these places to get our stuff! Meet your delivery drivers and “Dashers”! With the rising use of these apps, more and more people are racing around town delivering as many orders as possible to maximize their income. With drivers looking at their phone for directions and accepting delivery requests it is opening up a larger margin for error and accidents to occur. No big deal though, they have to have insurance in order to be a delivery driver, right? Right! But…
So When Am I Covered?
These delivery network platforms (like Uber Eats and DoorDash) only protect their drivers if a) they have their own personal auto policy; and b) they are making an active delivery. The personal auto policy without the endorsement will cover drivers when they’re not signed into the app. This leaves us with a gap here. What happens when you’re signed into the delivery network, but haven’t accepted a delivery yet? That’s where the endorsement comes in.
What Coverage Do I Need?
Well, the easiest way to determine that is by what you are delivering. Are you delivering people to their destinations, or are you delivering goods? Insurance companies all have different ways of covering things and use different verbiage, but the most common policy endorsements are Limited Transportation Network Company Coverage and Delivery of Goods Coverage.
The easiest way to remember these are to associate “transportation” with people; and “goods” with goods! So if you are signed into the Lyft app transporting people from the airport, you’re going to need the Limited Transportation Network Company Coverage. If you are picking up a Taco Bell order and delivering the goods to someone, you will need the Delivery of Goods Coverage.
What Is Covered With These Endorsements?
When either the Limited Transportation Network Company Coverage or Delivery of Goods Coverage is added to your personal auto policy, your policy coverage will follow you, the driver! Coverages for liability, comprehensive, and collision are provided when you are signed into the app, but have not yet accepted a delivery.
Is Just Anyone Eligible For This Coverage?
Not just anyone. Check with your agent to be sure if you are eligible to be a delivery driver and add these endorsements to your policy. The most common eligibility requirements are (but not limited to):
- Operator must have no paid at-fault claims in the preceding 36 months.
- Operator must have no major violations in the preceding 36 months.
- Operator must have a minimum of 3 years driving experience.
- Operator must be rated on a vehicle that has at least liability coverage.
Remember to always consult your agent with any questions or policy changes, and that you understand exactly what you are covered for.
Citations:
- https://www.usatoday.com/story/money/personalfinance/2023/09/28/americans-spending-big-amazon-doordash-delivery/70985566007/
- https://gridwise.io/blog/ads/who-are-delivery-drivers-a-demographic-breakdown-of-delivery-drivers-in-the-u-s/
- https://help.doordash.com/dashers/s/article/Requirements-for-Dashing?language=en_US#:~:text=Q%3A%20Does%20DoorDash%20have%20insurance,More%20information%20is%20available%20here.
- https://www.autoinsurance.org/uber-eats-insurance/