Does Food Delivery Insurance Cover Private Hire?

Written by Zego

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Food Delivery insurance provides cover for car and van drivers, and motorbike and scooter riders who deliver take-away food in return for payment. This is also called Hire & Reward. Bookings are typically made by phone, text, or mobile app and drivers may work with individual or large chain restaurants, or for delivery apps like Uber Eats, Deliveroo and Just Eat.

Parcel delivery is also covered with most Food Delivery policies, but the insurance does not cover Private Hire – carrying passengers for payment. Unlike food delivery drivers and riders, private hire taxi drivers must obtain a special operating licence as well as pass rigorous safety and knowledge tests before they take to the road. Once they are licensed, Private Hire drivers can also deliver food and parcels as well as transport passengers. They may buy All-in-One PH insurance policies to cover this mixture of work.

Food Delivery insurance is a legal requirement for all UK food delivery drivers. Standard motor insurance, (social, domestic, and pleasure – SD&P), does not cover this type of business activity. Drivers can purchase food delivery cover in addition to their existing SD&P insurance, or they may buy an All-In-One policy that provides combined SD&P and food delivery protection.

Food Delivery insurance comes in two basic flavours: Third Party, or Fully Comprehensive.

Third Party – or Third Party, Fire & Theft

Third Party insurance protects other people in an accident where the delivery driver is at fault. The insurance will pay to repair or replace their vehicles and property and cover legal liabilities for any injuries they incur. However, this type of cover does not protect the delivery driver’s vehicle or property. Should their vehicle be written-off, or need very expensive repairs, it could be catastrophic to the driver’s livelihood. Delivery drivers can add Fire & Theft protection to this cover. This will pay them in the event their vehicle is stolen, or damaged by accidental fire.

Fully Comprehensive

This is total cover. It protects third parties and the delivery driver in the event of an accident where the delivery driver is at fault. As well as compensating other persons, it also pays to repair or replace the delivery driver’s vehicle. Fire and theft, as well as cover for a shattered windscreen, or theft of audio, communication and sat-nav equipment is usually included with this kind of policy.

Extra Protection

Many policies give delivery drivers the option of buying extra cover to include breakdown services, no claims discount protection (NCD), and a replacement vehicle to keep them on the road and working while their old vehicle is fixed or replaced.

Zego Hourly, 30 days, or annual policies

Zego Food Delivery insurance can be purchased in three different ways:

  • By the hour – ideal for part-time drivers. Just buy it when you need it.
  • 30 days – great for seasonal drivers or those who also work in other jobs.
  • Annual – most cost-effective way to buy. For the full-time driver.

The cost of Food Delivery insurance can vary enormously. Depending on the driver’s vehicle and personal circumstances, the price difference from one insurer to the next can add up to hundreds of pounds per year. Discover competitively priced Food Delivery insurance with Zego. Buy flexible hourly, 30 days or annual policies. Get your quote in under a minute now.