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Is food delivery insurance the same as hire and reward?

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What is food delivery insurance?

Food delivery insurance is a type of 'courier insurance' which in turn is a form of hire and reward insurance. Sounds complicated? Hopefully this will make it clearer.

There are many forms of hire and reward insurance, and most of them will NOT cover delivering food.

What is hire and reward insurance?

Hire and reward insurance is designed to cover people who are paid to carry paying passengers, or deliver goods, which belong to other people (or will be purchased after delivery).

The majority of hire and reward policies are used by haulage drivers, furniture removal companies, and people making regular deliveries, each time to a single destination. However a type of this insurance, called courier insurance, has a basic difference; it is designed for those who make multiple deliveries to many different addresses. For a typical example think of the Amazon delivery drivers that we all rely on so much; rather than make a single delivery a day to a location that they may be quite familiar with, they may make dozens of them to addresses they have never been to before.

Why are there so many different types?

Hire and reward policies, are often created for specific business uses. A policy covering transport of stone chippings from a quarry to a building site is different from one for a driver working for a company like Currys delivering TV sets, which is different from a small removals company taking furnishings to a new home. From an insurer's pont of view they all face different risks so what type of goods can be carried, and where to, when, and by whom is usually strictly specified. This is why many taxi drivers would refuse to pick up a curry from the takeaway for you; it is likely that it would breach the conditions of their insurance.

It is the same with courier insurance. An Amazon delivery driver may have multiple deliveries to make but these are made largely during daylight hours, and if a delivery is late it may upset the customer but it wouldn't normally be a disaster.

What is so different about food delivery?

Someone delivering takeaway food, however, would do most work during the evening or late at night; so there are more risks of accidents, particularly when they are trying to navigate in the darkness using a satnav or similar. They are expected to go out in bad weather bacause the worse it is, the more customers are tempted to stay warm and comfy at home whilst someone else gets wet bringing a meal to them. And not least of all freshly cooked food needs to be delivered quickly whilst it's at it's best.

This all adds up to a more risky scenario for the insurers to consider, with drivers tempted to drive less carefully than they should do in order to get the hot food delivered in time. This is why it can be so difficult to get quotes for this type of insurance.

Where does this leave me?

All this means that having a hire and reward policy doesn't mean that you are automatically covered for making food deliveries. It is vital that you buy the right insurance policy that covers you for the type of work you are doing. Luckily though we have access to a whole panel of brokers who are highly experienced in getting quotes for delivery drivers all all kinds to compare, so why not get quotes now!

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