Taxis to Takeaways – The Right Insurance for You

Taxis to Takeaways – the Right Insurance for You

Online food delivery company Deliveroo says on-demand grocery delivery is now the fastest-growing part of its business and it works with more than 1,500 grocery partners. Online food order and delivery firm Just Eat has announced that it will create over 1,000 new UK jobs before March 2021.

With the food delivery sector booming, many taxi drivers are looking at how to incorporate this new revenue stream into their business. Before making any changes, it’s vital that drivers contact their insurance broker to verify that their public or private hire taxi insurance covers them for any different or additional business activity. Here’s some advice on the courier or fast food delivery driver insurance you might need.

Fast Food Delivery Driver Insurance

The COVID pandemic has shone a spotlight on the way people are ordering their food via apps and smartphones, whilst many award-winning restaurant groups such as those run by top chefs Angela Hartnett and Rick Stein are relying upon the delivery of exclusive recipe boxes to keep their business afloat.

As a Hackney cab or private hire taxi driver looking to supplement your income in this particularly challenging environment, you’re superbly placed to pivot your business through to food delivery. You have the vehicle, the driving experience, the local knowledge, and the people skills to adapt.  In addition, there is no limit to the number of app-based delivery businesses you can work for at any one time, so there are plenty of opportunities.

If you are going to approach any food delivery companies including Uber Eats, Deliveroo or Just Eat, having hackney carriage taxi insurance or private hire taxi insurance will not offer sufficient cover and all the app-based delivery providers will stipulate the need for additional courier or fast food delivery driver insurance.

The good news is that many insurance companies have agreed to offer their policyholders courier or fast food delivery driver insurance cover at no additional cost if you already have a taxi insurance policy with them. It’s in recognition of the fact that many of their clients in the hackney cab and private hire taxi business are struggling through the COVID pandemic and need that extra support in these challenging times. 

Whilst most taxi drivers will already have ‘hire and reward’ as part of their taxi insurance policy, this will only cover you for passengers and their possessions. If you are looking to carry parcels or transport food, you will need specific hire and reward insurance for any new aspects of your business.  Failure to incorporate a change of use for your taxi business could leave you at risk of any future claims not being upheld.

Courier Insurance Liabilities

Switching from carrying passenger’s luggage to parcels or food may seem quite straight forward, but there could be some limitations to the hackney cab or private hire taxi insurance policy you have already agreed with your broker.

With any courier or fast food business, you will be facing challenges of fulfilling multiple deliveries in a hurry and under pressure, making you more prone to accidents. Added to this, your precious cargo could also be subject to loss, theft, delay or damage in transit. Courier insurance will protect you, as well as the vehicle you drive and the cargo you transport.

As well as protection for the road risks you face, your insurance broker will need to find you a policy that includes goods in transit insurance, with a value to meet your expenses should you suffer theft, loss or damage while you are transporting goods from one place to another in the course of business.

Whether delivering fast food or packages, public liability insurance will help to protect you especially if you are responsible for food safety and hygiene. This will make sure you are covered should a customer have an accident or become ill because of something that happened whilst transporting your cargo.

If you are considering becoming a courier or fast food delivery driver in addition to your current taxi business, contact your insurance broker to make sure that you are fully covered for all eventualities.

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