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Does Business Insurance Cover Food Delivery?

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Business use car insurance will not be sufficient to cover your vehicle when working delivering food. The appropriate vehicle insurance level to ensure you’re protected while delivering food would be full-time Food Delivery Insurance or top-up/pay-as-you-go hire and reward for food delivery.

Business use vehicle insurance is designed to cover journeys to multiple locations – for example, an estate agent using their car to visit properties they’re trying to sell. While this sounds like it might cover food delivery, this is not the case.

The journeys an estate agent would make are very different from those you’ll travel while working in food delivery. They’d often be made during a 9-5 working day (compared to the late hours that food delivery drivers regularly work), parking in proper vehicle parking (as opposed to roadside) and without the time pressure that food delivery naturally entails. As such, courier/hire and reward insurance must be priced accordingly.

Courier/food delivery insurance generally refers to a full-time insurance policy targeted at (unsurprisingly) couriers and food delivery drivers. It will typically include your social, domestic & pleasure (SD&P) coverage within it, so you’ll be covered irrespective of whether you’re working or not. These policies are typically sold annually, so it can be a big (and expensive) commitment to make, especially if you only see food delivery as a short-term employment solution.

Part-time hire and reward cover covers you while you’re working and ‘switches off’ when you’re not working, meaning you only pay for what you use. It can be an exceptionally cost-effective option for part-time drivers or anyone not expecting to work in the food delivery market for too long. You need to be careful and check with your insurer before signing up; however, a number of the UK’s top vehicle insurance providers won’t accept top-up cover as valid, so you may risk voiding your SD&P cover if and when your insurer finds out.

Does car insurance cover food delivery driving?

Your regular social, domestic & pleasure (SD&P) car insurance will not be sufficient to cover you for food delivery work. You’ll require a more advanced cover level, usually referred to as courier/food delivery insurance or hire and reward. If you’re caught delivering food without the correct vehicle insurance, the punishments can be severe. If a case goes to court, then you may be faced with an unlimited fine and even disqualification from driving altogether. It’s fair to say, then, that it’s worth making sure you’re properly covered.

Full-time food delivery/courier insurance, which will usually include your SD&P cover within it, is an excellent option for drivers who rely on food delivery as their primary income source. Similar to SD&P, it’s usually sold as an annual policy, so you know you’ll be covered by the same insurer no matter who you’re driving for. Policies can be expensive but are well worth it if you see yourself delivering for the foreseeable future.

Part-time hire and reward for food delivery drivers can be an excellent option for anybody who either only works a few hours a week or only sees themselves delivering in the short term. You’ll usually be charged by the hour, so you’ll only pay for what you use, meaning you can ‘clock in/out’ of using (and paying for) your cover. You’ll need to be careful when signing up; however, as many SD&P providers do not accept top-up coverage as valid, so be sure to check with your provider before agreeing to anything.

What car insurance do I need for food delivery?

In order to work as a food delivery driver, you’ll need to insure your car with either a full-time courier/food delivery policy or a part-time/top-up hire and reward cover. Your regular social, domestic & pleasure (SD&P) or a business use class 1/2/3 policy will not be sufficient.

Food delivery driving is significantly more risky than other forms of road usage. You’ll be behind the wheel for many hours at a time, might need to park in busy roadside locations, will regularly drive in unfamiliar territories and may find yourself rushing (within the speed limit, of course) to make tight delivery deadlines on time. Don’t be surprised; therefore, if you find quotes for food delivery insurance to be on the more expensive side – insurers simply need to cover the additional risks of the work.

How much extra is delivery insurance?

A typical car insurance policy in the UK costs roughly £40 monthly. By comparison, food delivery insurance is significantly more expensive, with quotes coming in around the £220 mark each month (nearly half the total annual cost of a monthly SD&P policy) for many drivers.

This means that delivery insurance can be in the ballpark of 5.5x more expensive to insure your car for food delivery than it is for SD&P purposes, so make sure to budget accordingly and factor in the insurance cost when working out your net income at the end of a month. Many drivers forget to do this and are surprised when their net income isn’t as much as they initially anticipated, especially when delivery businesses advertise aspirational (but sometimes unrealistic) hourly income targets.

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