Food delivery services like Shipt, Instacart or Peapod have become increasingly popular and profitable these last few years in what look’s like the era of using a cell phone to call up for a ride or for food.
UberEats has even seen more profitable sales than the main Uber driving service. since its introduction in 2015. The service had more than eight million users in U.S. alone as of early 2017, according to Eater.
Shipt, an Alabama-based online grocery delivery marketplace, had just recently raised another $40 million in its quest to rise and become the dominant grocery delivery brand in the U.S.
The company is on track to expand to more than 60 new cities by the end of the year. They are also booking sales that are about 40% of its largest competitors’ (Instacart).
But are you covered by the recent spawns of the driving app business? Or is it like any other app job that has cropped up in the last few years?
Am I covered?
Like Lyft and Uber, it seems that employment for these companies has only gotten bigger, yet as far as Shipt and others are concerned, there is no coverage while on the job. Any accidents or damage to your vehicle is coming out of your pocket.
As a matter of fact, most drivers don’t even know when they are being protected by their own policy versus the rideshare company.
How can I get covered?
For those that want to make sure they are covered when working for any rideshare services, drivers should invest in rider sharing insurance.
Of course, drivers for a rideshare service should understand what their options are and how rideshare insurance policies typically work.
If you are not logged on to the app, then you are not under the protection of the rideshare service’s insurance policy, and you are on your own with your personal auto insurance policy.
However, once you turn on the app and are on your way to pick someone up, then you are covered by the rideshare service’s business insurance policy. Also, do not forget to notify your own insurance company as soon as you become a driver for a rideshare service in order to make sure you have the full coverage you need while delivering.
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