If you are planning on working for Deliveroo, Ubereats or Stuart you are going to need the correct insurance in place which covers you for food delivery. This type of cover is called Hire and Reward Insurance.
What is Hire and Reward Insurance?
It is probably important to discuss first the insurance we are all use to hearing about which is called Social, Domestic and Pleasure (also known as SD&P).
An SD&P policy is what you may have on your car or motorcycle currently, and covers you for everyday activities such as going to the shops or visiting friends.
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A Social Domestic and Pleasure insurance policy does not cover you for work you do with Deliveroo or Ubereats. Instead you will need Hire and Reward Insurance.
What is the difference between a Social, Domestic and Pleasure Policy and a Hire and Reward Policy?
If you are delivering food or parcels in return for payment you are required by law to have Hire and Reward Insurance in place during your working day. This insurance will cover yourself and other road users while you are making deliveries.
A social domestic and pleasure policy does not cover you while you are working for Deliveroo or Ubereats. It is very common for people working in the gig economy carrying out deliveries to think that their current SD&P policy is sufficient. This may result in your vehicle being impounded by the police when they carry out random stops on vehicles in cities throughout the UK.
It is important to also know that some companies such as ZEGO will cover people working in the gig economy with a top up insurance. Top up insurance does just that, it tops up your current SD&P Policy to cover you while you are working.
However it is worth checking with your insurance company if they permit top up insurance onto your existing SD&P Policy.
How much does food delivery insurance cost?
Unfortunately this is a difficult question to answer because it can depend on a lot of variables (e.g: age, location, gender, claims history or vehicle type). It is worth speaking to your insurance company who may be able to provide additional cover.