Doing deliveries and have a normal personal auto policy?
Many insurance customers may not realize that doing deliveries for hire is more than likely excluded from your personal auto policy (always ask your agent to be sure), and this exclusion could definitely cause some coverage issues if you were involved in an accident while delivering items for compensation.
Covid-19 is bringing lots of temporary changes to industries and many insurance companies are adapting as well… at least for the time being. Right now we are seeing and getting written notification from several of the auto insurance companies we represent that they are waiving their delivery exclusion for food and/or essential supplies during this Covid-19 time period.
Below are the notices we have received from companies we represent that are temporarily lifting this exclusion. I’m sure more companies will follow suit and as they do we will try our best to keep this updated. If you have questions, don’t hesitate to reach out to us.
Please note… this does not change the companies’ stances on transporting people for hire such as RideShare, Uber, Lyft, etc. Most auto insurance companies exclude this and with some companies (not all) you can endorse this coverage back on, but it’s not automatic so ask your agent if you’re unclear and you’ve been doing some Uber’ing.
Temporary Modifications to Enforcement of Food Delivery Exclusions…
Our personal lines policies currently exclude coverage for food delivery. However, to support our customers during this emergency, we are temporarily lifting our exclusion for losses that result from an insured’s use of a personal vehicle while delivering food for their employer. In the event of a loss that occurred during use of a vehicle while delivering food, we will provide this accommodation up to the policy’s limits stated on the declaration, subject to all other contract exclusions. This accommodation does not extend to any umbrella policy sitting above the personal lines auto policy, nor does it apply to drivers delivering food for a transportation network company or similar delivery company. In addition, this accommodation does not stack with any other coverage that is currently afforded to the policyholder or operator of the insured vehicle.
This temporary modification will be effective for losses that occur between March 16, 2020, through May 1, 2020, and are reported by July 1, 2020. We will continue to monitor the situation during this time period to determine the need to extend or adjust our revised posture.
Although coverage for food delivery is currently excluded in our Personal Auto and Motorcycle contract, please know that we will temporarily modify enforcement of policy exclusions to provide applicable coverage for claims involving food delivery activity by our Personal Auto and Motorcycle customers. This temporary modification will go into effect for claims occurring, Friday, March 20, 2020 through April 18, 2020. Please be aware that, in the event of a claim, a Progressive claims representative will determine coverage at the time a claim is filed.
We will monitor events during this time period to determine the need to extend or modify.
A State of Emergency has been declared in 50 states and Washington, D.C. related to the COVID-19 Virus. During this time, customers may be using their insured vehicle or motorcycle to deliver food, medicine or other goods. The personal auto and motorcycle policies exclude coverage for commercial activity. While a State of Emergency is in place, coverage is being extended for customers under their personal auto or motorcycle policy who are now making commercial deliveries, using their insured vehicle or motorcycle, to help them stay protected.
- No customer action is necessary. This coverage is being added to all auto and motorcycle policies, at no additional cost.
- Effective the date the Governor of your state declared a statewide State of Emergency related to the outbreak of the COVID-19 Virus.
- Once the COVID-19 State of Emergency has ended, the endorsement for commercial delivery terminates and will no longer apply to the customer’s insurance policy.
- This coverage extension does not apply to commercial activity outside of deliveries.
- Ordinarily, business would obtain commercial coverage for their deliveries. However, due to the COVID-19 emergency and the need for customers to stay home, many restaurants and other businesses have been thrust into delivery activity they did not have time to prepare for.
Coverage for delivery services is excluded from Foremost Motorcycle policies. This temporary modification extends existing coverages to an insured who is engaged in the delivery of essential supplies while using their personal Motorcycle.
This temporary extension of coverage will be in effect through April 30, 2020. As the date approaches, Foremost will re-evaluate market conditions and may choose to extend the effective date of this temporary modification. We will work with the various departments of insurance to implement these coverage extensions and modify implementation as requested by different states.
Current customers do not need to take any action to make this temporary modification effective on their policy. If you have any questions, please contact your marketing representative.