While many bars and restaurants have been forced to close their eat-in services amid the COVID-19 epidemic, restaurants have been allowed to continue drive-thru and takeout services. Many people who are self-isolating or are in forced isolation due to exposure are also looking to deliver services to get necessities from stores and restaurants. This has created something of a boom for delivery drivers, especially non-contract drivers for services like Uber Eats, Grubhub, Shipt, and Instacart have experienced a flux of new users, making it a possible job from those who have been laid off or had hours cut during the pandemic. However, Forbes reports that those looking to generate some extra cash with these jobs should be aware of the insurance requirements.
Some states may require that those completing deliveries carry commercial insurance rather than personal auto insurance. This is simply because making deliveries is considered a commercial, rather than personal use of a vehicle.
Some employers might provide insurance coverage for their drivers. For example, drivers for Amazon Flex will be provided with an Amazon Commercial Insurance Policy in all states except New York.
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Door Dash has a policy that covers drivers for up to $1 million in property damage and bodily injury as long as the driver is on an “active delivery.” Active delivery refers to having the takeout order on hand. However, Door Dash only covers amounts in excess of the driver’s personal insurance coverage.
Both GrubHub and Instacart require their drivers to have their own individual insurance policies. Like Door Dash, Postmates has an “excess” policy available to its drivers.
In New York, delivery drivers may be responsible for getting their own individual commercial insurance policies.