When you’re a delivery driver, you may need more than just standard personal car insurance. This can often come in the form of a hired and non-owned insurance policy. Keep reading to find out what it is and what you need to know.
About Hired and Non-Owned Insurance Policies
Hired and non-owned insurance policies are policies that businesses can buy to cover cars that they rent (hired) or that are owned by their workers (non-owned). Just like personal cars, any business vehicle also needs to have the legally required insurance policies. Also, a business can be sued if one of its drivers causes an accident. These lawsuits can often be for higher amounts than many individuals buy insurance for.
Hired and non-owned policies are often liability-only or add property damage coverage. Liability coverage is what protects the business from lawsuits. It will often extend to the driver as well in case they’re sued individually. Property damage coverage will usually apply to any business equipment in the car. Hired and non-owned policies usually don’t provide comprehensive and collision coverage that will reimburse the driver for theft or damage to their own car.
Why You Need to Worry About Insurance While Delivery Driving
Delivery driving is an excluded activity in most personal insurance policies. It’s business use of your car, and most personal policies only cover personal uses — commuting, shopping, and going somewhere fun. If you get in an accident, your car is stolen, or something else happens when you’re doing an excluded activity, your insurance coverage does not apply. That means you’ll have to repair or replace your car on your own, and other drivers can sue you directly with no insurance to back you up.
Watch Out for Gaps in Coverage
Even if your employer carries hired and non-owned coverage, you may still have gaps in your coverage. One is the likely lack of collision and comprehensive coverage discussed above.
Also, employer-provided coverage is often only “part-time” and may not cover all times that your personal insurance doesn’t. A good example is the early days of Uber ridesharing. Uber used to provide insurance coverage for its drivers only while a passenger was in the car. At the same time, most personal insurance companies said the time between fares was excluded. This left Uber drivers with no insurance coverage between fares. Uber has since helped close this gap, but there are still gaps in various services. You always need to carefully review both your employer’s and your own insurance policies to make sure you don’t have this type of gap.
How to Close Insurance Gaps
If your employer’s insurance coverage doesn’t go far enough or your employer doesn’t provide any coverage, you can buy your own. Some personal insurance policies allow you to add on a rider that allows for business use. These riders usually have restrictions, such as limiting how much you can use your car for business, but they’re often great for side gigs.
Your other option is to purchase a full commercial insurance policy. Commercial policies generally have the same coverage options as personal policies, but the rates may vary based on your line of business and how much driving you do.
To find out if you need to add coverage or which option is right to you, talk to Midwest Insurance Solutions. We’ll help you review your current insurance coverage and build a package that meets your needs.