If you are operating a scooter, small car or van and deliver fast food that has to be taken to its recipient in a limited amount of time, the fast food delivery insurance policy is a must. For those new to this special type of insurance some companies refer to it as takeaway or food courier insurance. All three names mean the same thing.
The fast food delivery insurance rates are higher than most other rates an insurance company can offer because of the added risk to protecting these drivers. The rates are set due to the increased level of stress on the drivers to reduce the driving time from point A to point B. Other aspects that are involved in determining the actual rate of a driver is their driving history, length of time as a delivery driver, and the area of their service,. Rural deliver couriers will have a lower rate than those that deliver food in highly dense urban areas.
As a point of clarification the fast food delivery insurance policy is separate from the regular type of vehicle insurance that all motor vehicles have to have to legally operate on the road in the UK. This can be anything from third party to comprehensive insurance.
The regular insurance policy each delivery driver has on their vehicle covers the medical and vehicle repair costs if the driver is involved in an accident. The fast food delivery insurance covers the cost of just what is being delivered and is required if the vehicle is used by a business for deliveries along with a portion of the repair bill.
Some fast food delivery services have wondered why they should cover their drivers with fast food delivery insurance. The answer is simple, the small £20 packages add up over time if there is an accident. Another more important reason is when the delivery of more than £200 to £500 is in the delivery vehicle.
Depending on the restaurant and their clientele, the larger orders can be very numerous. Without this special protection, all of the food and its associated costs will be lost. There is also a chance of the restaurant being sued if their delivery driver is involved in an accident.
For the businesses that use the scooters with an engine displacement of 125 cc or less, the lowest rate on fast food delivery insurance is set. The cars and vans are the highest, but they also hold the largest and more expensive orders.
Another aspect to consider when determining if you want to cover your drivers is that most of them will be delivering multiple orders at once. There are many restaurants that send out their couriers with £200 order or more on each time. The costs significantly add up for each of losses that occurs over a year’s time.
In the modern world of instant everything this on demand economy has developed into in the UK and other locations in the world, it is a wise business decision to protect yourself with the right type of insurance policy. It can mean the difference is staying in the black and operating or closing down due to unfortunate loses.
Some may assume that standard drivers insurance is all that is necessary to delivery food, this is a false assumption and one that could be very costly for your restaurant or takeaway business. The typical insurance policy for bike, car, van or any motorized vehicle will only provide cover for social, domestic and pleasure uses and not business use. Delivery food is considered a business use, as such you to take out the correct cover for fast food delivery.
Common Business types that need this type of insurance include:
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