Does business insurance cover food delivery work?

Business use insurance is a type of car insurance policy that covers you if you use your car to travel to multiple locations for work. For example, if you use your personal car to drive to different meetings and liaise with clients at their offices, you’ll need business insurance to cover all business-related car trips.

There are three types of business use car insurance policies, none of which would cover delivery drivers:

• Class 1 – Covers you if you drive to several places of work (the driving simply takes you to the location where you get paid for the work; driving is not part of the job). For example, a physiotherapist who drives to clients’ homes.
• Class 2 – Similar to Class 1, but includes an employee or coworker too (i.e. a named driver).
• Class 3 – Includes commercial travelling, often over long distances. For example, a travelling salesman would need this type of insurance.

Business insurance policies differ, but typically include:

• Public liability cover – Protects you should you injure or damage the property of a member of the public.
• Employers liability insurance – A legal requirement in the UK if you employ staff, including volunteers or part-time workers. Protects you should one of your employees become sick or injured while on the job.
• Professional indemnity insurance – This is voluntary for UK business owners and protects the business if you were negligent with your work (e.g. a mechanic used a faulty part).

Will business use car insurance cover delivery drivers?

No, generally this type of insurance won’t include food delivery, but it will depend on the exact insurance policy you have.

For example, if your policy includes hire and reward insurance, you will be able to deliver parcels (including food parcels) in exchange for money.

Note: Most business insurance policies don’t include hire and reward insurance, so make sure you check your policy carefully before you start delivering food.

If you wish to be covered for all eventualities while you’re making deliveries, consider getting the following add-ons to your policy:

• Goods in transit insurance – Covers the goods (i.e. the food parcels) you’re delivering should they be damaged or stolen. It’s not usually necessary since the food you’re delivering has low value, but it could still be worth considering.
• Public liability insurance – This is often added to your H&R policy, so make sure to check first. It covers you should you injure a member of the public or damage their property.
• Personal accident insurance – This cover will compensate you if you’re injured while making deliveries. It will also cover lost income if you’re permanently injured or disabled.

Food delivery drivers won’t need business insurance to drop off food parcels or groceries. However, they will need the correct policy in place, which includes a type of commercial car insurance called hire and reward insurance.

Once you have this insurance policy in place, you can make food deliveries knowing you will be completely covered should you be involved in an accident.