The independent delivery business has boomed with COVID-19 pandemic restrictions. Transportation network companies (TNC) like Uber and Lyft are adding more drivers to support the demand for food delivery. On-demand delivery services, such as Instacart, are also in high demand. Many insurance companies now require drivers who deliver packages and food or offer rideshare services to have business-use policy coverage. Commercial auto coverage provides the on-demand delivery insurance you need when you’re making money using your car.

What to Consider If You’re Taking a Delivery Gig During the Pandemic

Before you jump into the gig economy to boost your income during the COVID-19 pandemic, you need to make sure that you can focus on driving and earning money. If you’re using a company vehicle, you won’t have to worry about your own car and insurance. However, any tickets you receive will go on your record. Drive safely. If you’re driving your own vehicle:

  • Check with your insurance company to know what is covered and what isn’t.
  • Some policies cover delivery gigs if you’re only working part-time.
  • If the restaurant you’re working for has auto coverage for your personal vehicle while you’re working for the company, check to see what is actually covered. You may still be liable for your own medical bills or damages to your car if you’re in an accident.
  • During the pandemic, some states are waiving business insurance for delivery operators. Check with your state’s insurance commission and your personal insurance company to verify.

Why Delivery Operators Need Commercial Auto Insurance

Your personal auto insurance protects you against a huge financial loss in case of an accident. Using your car for business purposes increases the time you spend on the road, thus increasing your chances of an accident. Delivery operators may find themselves without any coverage when they use their vehicle for business purposes while relying on their personal policy. Your insurance can deny a claim that doesn’t fall under personal auto use. The insurance company can also cancel your personal policy for using your car for business purposes.

A commercial auto insurance policy steps in to cover the gap. Auto insurance doesn’t just cover medical bills when you have damages. Depending on your coverage, your insurance pays for your car repairs and possibly a replacement vehicle while your car is in the shop. A business policy that covers you while driving for a TNC or on-demand delivery service also protects your passengers and contents.

TNC for On-Demand Delivery Operators

Talk to American Risk Management about a commercial auto policy that focuses on TNC and ride-sharing delivery operators. This policy will give you peace of mind that you won’t lose your money if you are in an accident while helping your neighbors get groceries and other necessities. Protect your income and your vehicle with the right insurance.

About American Risk Management, Inc.

American Risk Management, Inc. (ARM), along with its predecessor entities, has provided public auto business owners with coverage for their vehicles and operations since 1938. We provide coverage to taxis, sedans, limousines, ride-sharing vehicles, sightseeing tours, courtesy shuttles, school shuttles, last-mile delivery, and couriers across the Washington, D.C. metro area. Our expertise and experience in the commercial transportation industry allow us to provide our clients solutions that fit their unique risk profiles. To learn more about what we can offer you, call us today at (202) 547-8700.