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Blog: December 30, 2019

What insurance do I need to deliver takeaway food?


In the past few years, there has been significant growth in the number of food outlets which offer a takeaway delivery service as part of their customer care. From pizza delivery employees who are given a moped on which to make their deliveries, through to takeaways that hire cars and drivers to deliver orders in the local area, there are several different ways in which the food can be delivered.

Read further about Insurance policies for takeaway delivery drivers

Takeaway Food Being Delivered

Unsurprisingly, insurance is needed for drivers carrying orders on their vehicles. Whether you drive a vehicle that belongs to the fast-food business, or you drive your own vehicle, you will need a special sort of insurance to be covered in case of an accident. This insurance is known as hire and reward insurance.

What is hire and reward insurance?

Obviously a delivery driver is on the road far more frequently than the average motorist. In addition, they are carrying goods belong to someone else. Because of the mileage involved and various other factors, they face a far greater risk of being in an accident than someone who doesn’t drive for a living. For this reason, the usual motor insurance policy which individual motorists take out as standard isn’t sufficient. Hire and reward insurance is formulated to protect delivery drivers in the event of an accident.

What happens if it’s a works vehicle?

If you drive a vehicle supplied by work, your employer should ensure that you have the appropriate insurance needed to carry out your work legally. If you use your own car for delivery, even if you are employed by the business rather than self-employed, you will need to make sure that you have hire and reward insurance in place.

Although your employer may finance this for you, as the owner and driver of the vehicle it is your responsibility to make sure you have adequate cover.

What happens if I’m self-employed?

If you work as a self-employed takeaway delivery driver, you will need to organise your own hire and reward insurance. You may also wish to consider public liability insurance, in case of some sort of incident where you cause injury to a member of the public or a customer whilst delivering the food.

Note that if you are self-employed, you are particularly vulnerable to compensation claims, as you will be sued directly, rather than a business being sued. If you are sued successfully, you could end up having to forfeit your assets to pay for compensation.

Where can I purchase hire and reward insurance?

Because hire and reward insurance is a specialist form of insurance, it’s not always available from a mainstream broker. To ensure you get the best price on your policy, and also to ensure that you get cover that’s right for you and the work which you do, it’s best to opt for a niche broker who has a good understanding of what hire and reward insurance is. Remember, it’s important to have the right insurance in place before you start your delivery job.


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