People who deliver pizzas for a living or as a part-time job may be under the impression that they are covered by their regular auto insurance policy. However, this is usually not the case, as most personal polices do not cover any type of delivery. Before taking a pizza delivery job, be sure you have the right type of coverage to avoid possible claim denial or policy cancellation.
Auto insurance is typically categorised as either personal lines or commercial lines. A personal lines policy includes normal everyday use such as commuting for work or driving for pleasure and personal use. Commercial use involves using the vehicle for business purposes, such as hauling people or merchandise for a fee or for vehicles that are part of a fleet owned by a company. Any type of delivery, such as delivering pizzas, is usually considered as business use, so this type of exposure normally needs to be covered under a commercial lines policy.
A personal lines insurance provider often won't offer coverage for pizza delivery because of the increased risk. Drivers may be in a hurry to keep up with a delivery schedule that can increase the chances of being involved in an accident. They may also work late at night or travel into high-crime neighbourhoods. The fact that they carry cash can make them a target for criminal activity.
Before taking a job delivering pizzas while using your personal vehicle, check to see if the pizza shop or restaurant owner offers any type of coverage. In some instances, the shop owner may provide liability coverage. This pays for any damages or injuries to others that result from your negligence. However, it does not provide coverage for damage to your vehicle occurring in the course of a pizza delivery job.
If the pizza shop does not offer coverage, delivery drivers can check with their personal lines carrier to see if it might offer coverage for an additional fee. A more likely option is to obtain coverage from a commercial lines carrier, although you may need to pay a high premium. Your personal lines agent may also be licensed for commercial lines, or he may be able to refer you to a reputable commercial lines company or agent.