Client Scenario 1:
“I own a small business and the odd time I drop off orders to my customer’s home. Will my automobile insurance cover me should something were to happen?”
We understand that business models have been impacted by COVID-19. Businesses in communities across the province are working with customers to continue to offer their products whether it be via local pick-up or home delivery.
If you are offering a delivery option at this time, your insurance advisor needs to be aware of the change to your vehicle use to include deliveries as well as how long you plan to offering this service – whether its for the remainder of the global pandemic or indefinitely. As insurance advisors, we need to ensure the correct coverage in place for your unique business; having a claim being denied for material change in risk is something we all want to avoid.
If you are delivering products in your personal vehicle to customers, please discuss this with your insurance advisor so they can discuss your options for your unique circumstance.
Client Scenario 2:
“Does my personal automobile insurance coverage cover me when I deliver pizza?”
The simple answer is No!
If your insurer is aware you are delivering pizzas with your personal vehicle, your insurance automobile policy will be rated specifically for delivery use.
This is probably not something you initially think about when you accept the position as a delivery driver and we understand that. Here is a rule of thumb to keep in the back of your mind; change in use, consult your insurance advisor.
Delivering without proper coverage could result in no coverage in property damage as well as an unwanted lawsuit.
Client Scenario 3:
“What if I deliver for Amazon just on the weekends, does my personal automobile insurance coverage me? “
Again, the simple answer is No!
Unless your insurer is aware that you are making the delivers than you do not have coverage. You will need to advise your insurance advisor of the change in use as well as your daily route. This will have an impact on your rating. Your insurance advisor needs to know your Daily KM Radius and your Maximum KM Radius along with a list of the cities you will visit. This information will make up your insurance coverage and premium. Along with commercial automobile insurance specializing in delivery, you may and most likely will need to purchase a Commercial General Liability policy with Motor Truck Cargo Coverage. Motor Truck Cargo coverage is intended to provide coverage for the packages in your care, custody and control until delivery. One day you could be delivering packages valued from $30- $500 on another day you could be delivering packages valued from $500-$5,000, there is no way of knowing what you’re delivering on any given day therefore you need to purchased Motor Truck Cargo coverage for the maximum load you could be driving on any given day.
It will be your responsibility to get this information from Amazon.
In closing, if you are thinking about using your vehicle for anything other than getting groceries, driving around town or taking a family road trip, please consult your insurance advisor.