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Food Delivery Insurance Coverages In OntarioApr 9, 2020

Food delivery services in Ontario have grown in popularity since the rise of Skip the Dishes and Uber Eats. Most restaurants are now offering a food delivery option especially since the COVID-19 closures.

Before you consider using your personal vehicle to start any type of venture outside of your normal day to day driving, it is beneficial to give your insurance broker a call to make sure you have the proper auto insurance coverage.

Does My Personal Auto Insurance Policy Cover My Food Delivery Business?

Some companies may tell you their insurance will cover you while you are making deliveries for them however, this statement may not be entirely true. Their policies are very limited in what is actually covered and the gap in insurance coverage may fall on you. Make sure you have the right insurance policy coverage as a commercial policy may be required. This means you would not be covered under your personal auto policy.

Here is what you should know:

  1. If you are volunteering (not getting paid) to drop off groceries for an elderly neighbour, or for a family that is in full quarantine, this is something the insurance companies are willing to allow as there is no money changing hands for the actual service, so this would not constitute a business.
  2. If you are doing fast food meal deliveries such as: Domino’s, Uber Eats, Skip the Dishes or any other food delivery service, this is NOT covered under your car/ auto insurance policy. A commercial policy would be required, even if for a short period of time. If you place any commercial signage on your vehicle this could also VOID your personal auto insurance, as this is not the intended use of the vehicle for the basic personal auto policy.
  3. This exclusion also applies to any type of delivery or courier service, food or not, where you are being paid to deliver goods.

Insurance Coverages For On-demand Delivery Drivers

In February 2019, a Burlington, Ontario woman was left with an $8400 bill after an accident occurred while she was delivering for Uber Eats. She did not inform her insurance company prior to starting the delivery service, and as a result her claim was denied and her insurance was cancelled.

When considering any type of delivery business whether it be food, goods or courier service your first thought should be; “Does or will my insurance cover this?”. Whether you are considering fast food, pizza or just groceries, it is always best to reach out to your insurance broker to review your coverages.

Give us a call and we will make sure you have the proper insurance coverage and the peace of mind knowing you are covered.

If You Have Any Questions About Food Delivery Insurance, LETS CHAT!

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