Motor insurance coverage for food delivery industry

Since the start of COVID-19, the demand for food delivery in the local community has skyrocketed. With the growth in food delivery businesses, more people have become full-time or part-time riders for various food delivery platforms. 

With hundreds and thousands of food delivery riders threading their way through the streets to make deliveries, vehicle accidents will inevitably arise. According to statistics issued by the Transport Department, there was a 30% increase in motorbike and bike accidents reported in 2020 compared to the year before. (^) It is thus important for food delivery companies to be aware of the potential risks for vehicle accidents to happen and to ensure they have suitable insurance coverage to protect their food delivery platforms as well as the riders. 

There are also circumstances when riders deliver food using their own vehicles and this adds a layer of complexity as their motor policies may not cover such commercial usage. For instance, where carriage of goods is excluded, self-employed riders using their own vehicles for food delivery will not be covered. Delivery companies and drivers who use their own vehicle for delivery should remember that buyback coverage is required with additional premium, and they are highly recommended to review and ensure all potential risks have been covered.

It's always advisable to inform your broker or agent about the specific usage of your vehicle – whether it’s for personal or commercial use or a combination of both. Riders and food delivery companies are also advised to maintain records of the delivery jobs – for example, riders are encouraged to make use of dash cameras and back up the footages to substantiate any potential claims. In the event of any misrepresentation or non-disclosure by the insured or policy owner, the insurer has the right to void the policy or deny the claim.

It is important to communicate your needs and requirements clearly to your broker/agent/insurer so they can recommend the appropriate solutions that best suit you. At QBE, we work closely with our business partners to ensure we have our customers covered for what matters most to them. 

^Note: Road Traffic Accident Statistics issued by the Transport Department