Alyssa Lane
Postmates offers its couriers insurance to cover liability, injuries, and certain other types of damage, as well as occupational insurance for drivers. However, this insurance does not cover the driver's vehicle or bike due to an accident. This means that drivers must also have personal insurance, which can create complications as most personal insurance policies do not cover commercial activities. As a result, drivers may need to purchase commercial insurance, which can be expensive.
| Characteristics | Values |
|---|---|
| Postmates insurance coverage | Covers liability, injuries, and certain other types of damage + occupational insurance for drivers |
| Postmates insurance activation | From the time a driver accepts a delivery request until the customer receives their order |
| Postmates insurance for drivers' vehicles | Not covered by Postmates |
| Postmates insurance for drivers' medical costs | Not covered by Postmates unless the driver buys optional occupation insurance |
| Personal insurance for Postmates drivers | Required by Postmates; some insurance companies may not cover Postmates |
| Commercial insurance for Postmates drivers | May be required by insurance companies |
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What You'll Learn
Personal insurance and commercial insurance
Postmates requires its drivers to have a personal auto policy that covers the state minimums. However, personal car insurance policies typically contain a clause that specifically excludes using your vehicle for commercial activities, and driving for Postmates is considered a commercial activity as you are using your car for business purposes. If you do not inform your insurance company that you are driving for Postmates, they could cancel your policy. However, if you do inform them, they may require you to switch to a commercial policy.
Postmates provides supplemental insurance of $1 million while you are on a delivery, which covers liability for bodily injury and/or property damage to third parties. This policy does not replace your personal insurance and does not cover your vehicle, bicycle, or bodily injury. Postmates also offers occupational accident insurance, which covers medical bills and lost income up to the policy limits. This insurance is provided in addition to general liability insurance.
Commercial and business-use policies are designed to cover the risks associated with food delivery and other commercial uses. These policies can be expensive, and it is important to check with your insurance carrier to understand your options and ensure you are properly covered in case of an accident.
It is crucial for Postmates drivers to understand their insurance coverage and ensure they have the necessary policies in place. While on active delivery, Postmates insurance will cover any injuries or accidents. However, outside of active delivery, your personal insurance policy will be your primary coverage.
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Postmates' insurance coverage
Postmates requires its drivers to have a valid driver's license, insurance, and registration to ensure they are legal drivers. However, Postmates does not check the validity of its drivers' insurance every year. While some insurance companies do not cover Postmates, others, such as GEICO, do.
Postmates offers excess auto insurance that does not replace your personal insurance. This policy protects Postmates couriers in the case of an accident with up to one million dollars in coverage. This includes liability insurance, which covers bodily injury and/or property damage to third parties, and auto-excess insurance, which covers bodily injury and/or property damage to third parties in automobiles. This coverage applies to injuries and accidents while couriers are on active delivery, from the time they accept a delivery request until the time the customer receives their order.
Postmates also offers occupational accident insurance, which covers medical bills and lost income up to the policy limits. This includes up to $1,000,000 for accident medical expenses, up to $100,000 for accidental death benefits, up to $500 a week for continuous total disability, up to $500 a week for temporary total disability, and up to $200,000 for accidental dismemberment. Coverage for accidental death, survivors benefit, accidental dismemberment, and paralysis benefits are reduced if the driver is 65 years old or older.
While Postmates does offer supplemental insurance, drivers are encouraged to have their own personal auto insurance that meets the state minimums. This is because Postmates does not cover the driver's bodily injury in the case of an accident. Additionally, Postmates does not cover the driver's car in the case of an accident. If a driver does not inform their insurance company that they are driving for Postmates, their insurance policy could be cancelled. However, if the insurance company is informed, the driver may be forced to use a commercial policy.
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Accidents and medical costs
Postmates requires drivers to have a valid license, insurance, and registration to ensure they are legal drivers. However, personal car insurance policies typically contain a clause that specifically excludes using your vehicle for commercial activities, and driving for Postmates is considered a commercial activity.
If you are in an accident while working for Postmates, they will cover medical costs depending on the circumstances of the accident and your employment status with Postmates. If you are the at-fault driver, Postmates will not cover your medical costs, and you will need to rely on your personal insurance policies to cover them. This could be done through health insurance or specific add-ons to your insurance.
If you are not the at-fault driver, then Postmates' coverage should cover you under their liability policy, provided that the Postmates driver was on the way to make a delivery or was in the middle of one, and your damages exceed the amount of coverage the driver has on their own auto insurance.
Postmates offers two kinds of insurance: excess auto insurance and auto liability insurance. The former protects Postmates couriers in case of an accident with up to one million dollars in coverage for liability for bodily injury and/or property damage of third parties. The latter provides $1 million in excess liability to third-party claims that will only come into play after the driver's personal auto insurance coverage has been exhausted.
Additionally, Postmates offers optional occupational insurance, which covers medical bills and lost income with an amount up to the policy limits. This includes up to $1,000,000 for accidental medical bills with no deductible or co-pay, up to $100,000 for an accidental death benefit, up to $500 a week in continuous total disability replacement earnings, and up to $200,000 for accidental dismemberment.
It is important to note that Postmates will only cover damages if the driver was on an active delivery, meaning after they selected "accept" on the platform and until the customer receives their order as logged by the platform. If you are offline or online but have not accepted a delivery request, your personal insurance policy is your insurance policy.
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Insurance requirements for delivery drivers
If you are considering becoming a delivery driver, it is important to understand the insurance requirements. While it can be a lucrative side hustle, not having the right insurance could cost you a lot of money in the event of an accident.
Personal insurance
Most auto insurance policies are intended for personal use. They typically cover you when commuting to and from work, running errands, or driving to meet a friend. When you use your vehicle for business purposes, including making deliveries, your personal auto policy will not cover you. Many insurers don't yet offer rideshare insurance for delivery drivers.
If you are delivering food for an app-based service, you are using your car for business purposes. This means that if you have an accident while delivering food, your insurance company can deny your claim and cancel your insurance. This is true even if you are online and waiting for a request.
Delivery company insurance
Some delivery companies provide insurance for their drivers, but this is often secondary to the driver's personal insurance policy. This means that the company's insurance will only kick in after you have exhausted your own policy limits.
For example, Postmates provides insurance to cover liability, injuries, and certain other types of damage, but it does not cover your car. Uber and Uber Eats offer two tiers of coverage. When you are online and waiting for a request, Uber's insurance provides liability insurance of $50,000 per person and $100,000 per accident for injuries, and $25,000 in property damage per accident. When you are en route to a customer, Uber provides at least $1,000,000 for property damage and injuries.
DoorDash provides commercial auto insurance that covers drivers in most states for up to $1 million in bodily injury and property damage if you cause an accident during the "delivery service" period. GrubHub requires you to have car insurance and does not provide its drivers with any commercial auto insurance. Instacart also requires drivers to have their own auto insurance and does not provide any.
Options for delivery drivers
If you are a delivery driver, you have a few options to ensure you have the right insurance coverage:
- Contact your insurance carrier to check what your options are in terms of coverage for delivery driving.
- Purchase a business-use auto insurance policy, which is designed for people who use their car for specific and limited business purposes.
- Buy a commercial auto policy.
- Add a business use endorsement to your personal policy.
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Insurance and liability
Postmates requires its drivers to have a valid license, insurance, and registration to ensure they are legal drivers. However, this does not mean that a driver's personal insurance will cover them while working for Postmates. Most personal car insurance policies contain a clause that specifically excludes using your vehicle for commercial activities, and driving for Postmates is considered a commercial activity. If a driver is in an accident while online or delivering for Postmates, their personal insurance company can deny their claim and cancel their insurance.
Postmates provides insurance to cover liability, injuries, and certain other types of damage, including occupational insurance for drivers. This includes excess auto liability coverage of up to one million dollars per accident for bodily injury or property damage to a third party. This coverage applies to injuries and accidents while the driver is on an active delivery, from the time they accept a delivery request until the customer receives their order. It is important to note that Postmates will not cover any damage to the driver's vehicle or bike due to an accident, and drivers are encouraged to carry their own policies to cover these expenditures.
Postmates also offers occupational accident insurance, which covers medical bills, disability, death, and survivor payments resulting from the policyholder's occupation. This type of policy goes into effect on every delivery from the moment the driver accepts the request. The coverage limits for this insurance are up to $500 per week for temporary disability to replace earnings, up to $500 per week for total disability, up to $100,000 for accidental death, a survivor's benefit of up to $100,000, and up to $200,000 for accidental dismemberment.
To be fully protected as a delivery driver, it is recommended to add a rideshare endorsement or enroll in a commercial auto insurance policy. Some insurance companies specialize in insuring food delivery drivers, and most also offer additional commercial insurance that can be added to a current policy. It is crucial for drivers to understand their insurance coverage and ensure they are properly covered in case of an accident.
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Frequently asked questions
Yes, Postmates provides insurance to cover liability, injuries and certain other types of damage, as well as occupational insurance for drivers. However, drivers are required to have a personal auto policy that covers the state minimums.
Postmates insurance covers liability for bodily injury and/or property damage of third parties. It also offers excess auto insurance, which provides liability coverage of up to $1 million per accident.
Postmates' commercial auto insurance policy does not directly cover medical costs unless you purchase the optional occupation insurance. If you are the at-fault driver in the accident, you will need to rely on your personal insurance policies to cover medical costs.
Yes, it is important to inform your insurance company that you are using your vehicle for business purposes. If you do not, they could cancel your policy.
If your insurance company finds out that you were using your vehicle for business purposes without informing them, they may deny your claim and cancel your insurance.
