Want to be a delivery driver? I explain what Fast Food Delivery Insurance For Deliveroo.
Knowing the difference between food Delivery insurance and normal vehicle cover can be confusing.
But if you are planning on working for Deliveroo, Ubereats or Justeat 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.
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?
This is a difficult question to answer however it can range between £1000-2000 depending on age, location, gender, claims history or vehicle type. It is worth speaking to your insurance company who may be able to provide additional cover.
It is also important to point out that if you are a delivery driver, business insurance is classed as expense and can be written off against any tax that might be due. For more information about what which expenses you can and cannot claim for you may like to read our post on what expenses a Deliveroo driver can claim.
What company’s offer food delivery insurance for scooters and motorcycles?
There is a limited number of insurance companies that offer fast food delivery insurance (also known as hire and reward), However here is a couple of companies below:
Two Wheeled Insurance For Food Delivery.
Scooter And Motorcycle Insurance For Delivery Drivers.
Food Insurance from 1 hour to 1 year.
Do I need to tell my insurance I drive for Uber eats or Deliveroo?
Yes, you must tell your insurer if you are using your vehicle to make food deliveries. As we have already mentioned your normal vehicle insurance doesn’t cover you, so if you have an accident whilst making a delivery your insurance will be void.
It is also worth mentioning that in larger cities the police do spot checks on delivery vehicles to check that they have the correct insurance in place. If the police discover that you don’t, your vehicle can be taken to the police pound.
Is Food Delivery Insurance Tax Deductible?
Yes. If you pay separately for your delivery insurance or it is added to your current vehicle policy charge, this cost is tax deductible. What this means is that when you file a tax return the cost of the insurance can be deducted from taxable income or the amount of tax to be paid. For a more detailed breakdown you may like to read about expenses a Deliveroo rider can claim.
Hopefully this post about what insurance do you need for food delivery has answered some of the questions you may have. Can I suggest another post I have written for delivery drivers which is about Deliveroo Pay: how much can you earn and how to get started?.
You may also like to read about what equipment do I need for Deliveroo which shows some of the best stuff you need to work as a delivery driver.