Need Food Delivery Insurance?
How Much Do The Different Types of Food Delivery Insurance Cost?
There are different costs for different types of insurance:
Hire and reward insurance
Hire and reward cover is a legally required policy designed for those using their own vehicle(s) to transport people or goods, for commercial purposes. With that in mind, hire and reward can be used to cover a multitude of vehicles, including vans, cars, HGVs, taxis, motorbikes, and even e-scooters.
Due to this inherent variability and the subjective circumstance of each and every claimant, hire and reward costs vary depending on age, experience, and the nature of your intended service.
For example, if you use your vehicle as a wedding car on weekends and as a courier car during the week, the overall cost of your insurance will be adjusted accordingly.
Public liability insurance
Public liability insurance provides cover to you and your courier business against third-party claims of compensation and the potential legal fees incurred as a result. In particular, it covers claims made as a result of injury, damage to property, and even death on and off your premises.
As a delivery driver, the most likely cause of such claims is accidental damage caused to parked cars. Again, the price of your public liability insurance is subjective to your specific circumstances.
Product liability insurance
Product liability insurance is designed to provide cover for your business against third-party claims incurred as a result of faulty goods. As a delivery driver or courier, you simply transport the product and thus are unlikely to incur any product liability.
However, if the food/product you transport is faulty or causes damage or injury to a third party, then product liability insurance is a good safety net to have in place.
As with all insurance policies, the cost of product liability depends on your personal circumstances and the nature of your courier business.
Pay-as-you-go insurance is a modern take on fast food delivery insurance and allows delivery drivers and bicycle couriers to secure cover on a monthly, weekly, daily or even hourly basis.
As a result, the user can secure coverage specifically for their working hours, with their policy reverting back to their standard social, domestic and pleasure insurance thereafter. Needless to say, then, pay-as-you-go policies can provide a substantial saving for couriers who work part-time hours (or less).
However, as above, the price of each policy varies depending on the individual.
As the name suggests, breakdown cover is an insurance plan that will cover you in the event of a vehicle breakdown. Common causes are a punctured tire, flat battery etc. but can extend up to more substantial issues.
Many insurers incorporate breakdown cover into their standard motor insurance policies. However, if your current car insurance plan doesn’t include a breakdown cover, you must secure it separately. Again, the cost of breakdown cover varies depending on the factors discussed earlier in the article.
Third-party courier insurance
Third-party courier insurance is the minimum level of insurance required for delivery drivers and couriers to operate legally as it covers both the vehicle and the transported food items in the event of third-party claims.
In particular, this type of insurance is highly recommended for bicycle couriers (in combination with public liability insurance) as it covers the food that they transport. However, in the event of an accident, third-party courier insurance doesn’t cover vehicle repairs.
Again, the cost of third-party courier insurance is subjective to your circumstances.
To find out more about which insurance plan is right for you, or to receive a quote, our Quote Comparison Tool will compare hundreds of policies, fast, in order to find the best deal for you.
How to Reduce the Costs of Food Delivery Insurance in the UK
Why Does Food Delivery Insurance Cost More Than a Standard Policy?
Fast food delivery insurance usually costs more than a standard insurance plan because it covers the additional pressures and responsibilities incurred by a food courier. These include but are not limited to:
- Time pressure
- The transportation of third-party goods
- Product liability
- Unsociable working hours
Choosing the Right Fast Food Delivery Insurance Policy for Your Business
Is food delivery insurance a legal requirement in the UK?
Yes, food delivery insurance is a legal requirement in the UK.
In particular, budding delivery drivers and couriers must have at least a hire and reward and/or third-party insurance policy in place before starting their new career delivering food.
Can I use car business insurance to deliver food within the UK?
Food delivery insurance is a sub-category of standard car business insurance. As a result, standard car business insurance isn’t sufficient to legally deliver food within the UK. Rather, you must have also secured the correct specialist fast food cover.
How can I determine if my business needs fast food delivery insurance?
Essentially, if your business involves delivering perishable goods, you must have food delivery insurance in place. Crucially, however, if you are a restaurant owner who utilises the services of a third-party courier business to deliver your food, you will not require food delivery insurance.
What are the consequences of driving illegally without the right food delivery insurance coverage?
The consequences of driving illegally without the right fast food delivery insurance in place are both judicial and financial.
First, without the correct coverage, you will be personally responsible for the legal and financial fees incurred as a result of your illegal activity. Judicially, if you are found to be working illegally, you will gain a criminal conviction and, at the very least, several points on your driving license.