During the COVID-19 pandemic, a lot of people have opted to have their food and other essentials delivered rather than going to the store. This has given rise to a booming food delivery economy.
Most of the jobs in the industry, however, do not involve standard employer-employee contracts. Instead, they are contracted freelance work, also called “gig work.” Thus, food and other delivery drivers are not provided with business auto insurance. They have to get their own insurance for their vehicle. If you are a food delivery driver or are thinking about becoming one, here is what you need to know about auto insurance.
Personal Auto Insurance Is Not Enough
Personal auto insurance policies are designed specifically for personal auto use. They are not designed to cover any business-related activities.
In fact, many auto insurance companies will not cover incidents that occur during business operations. This is mostly because as a delivery driver, you are on the road more frequently and driving longer distances. This increases your risk of getting into an accident and reduces the value of your car through wear and tear. That is why you should consider a business insurance policy for your delivery work.
What Is Business Auto Insurance?
For freelancers, the idea of purchasing another type of auto insurance policy can be intimidating. Many people think that a business auto insurance plan will cost them more money and are well outside of their budget. However, it is important to understand there is a difference between commercial and business auto insurance.
Commercial insurance is designed for businesses with fleets of vehicles that need more comprehensive insurance policies. Business insurance, on the other hand, is much smaller and meant for people like small business owners, entrepreneurs, and freelancers. Thus, it is more affordable than people expect.
Why You Should Invest In Business Insurance
There are good reasons to invest in business insurance if you are doing gig delivery work. The first is that many delivery apps have minimum business insurance requirements for their drivers. If those are not met, the individual will not be able to drive for them.
Secondly, business insurance provides more coverage if there is an accident. This is especially crucial because if you get into a wreck, you could lose your vehicle if it is not properly covered. You can also incur significant expenses. This could impact your ability to make money.
Finally, there are affordable policies that can fit within your budget. These will provide the coverage you require without added expenses.
If you are a gig delivery driver, there are several options for business insurance that can address your needs. At Panorama Insurance Agency, we work with a variety of insurance carriers. That way, we can shop around and find the best deal for our clients. We will put together a comprehensive policy that protects you during your working hours but will fit within your budget. Give us a call today to get sufficient coverage for your gig work.