Ask Nick – My business is offering delivery during the crisis. Will this affect our insurance?
Nick Kidd, Director of Business Insurance, talks about how insurance companies are handling business insurance customers that are offering delivery for the first time during the COVID-19 pandemic.
- My business doesn’t usually offer delivery, but we do now because of the pandemic. Will this affect my business insurance?
- Yeah so, typically, delivery is something that insurers want to know about. I mean, as you can imagine, it’s quite a different risk to what they would they would normally take on. So in the event that your businesses switch to delivery, you should definitely talk to your insurance broker and let them give you an insurer-specific response. There are some elements of coverage which may kick in, such as non owned auto. So if one of your employees is using their car to deliver for your business, has an accident, gets sued, and your business also gets sued in that process, then your non owned auto should kick in and protect you, but that’s a liability coverage only, and that’s not paying any of the the collision damage cost that your employee may have. So it is really important that you do declare that change, and talk to your insurance company. On the side of, you know, if you are looking to start delivering, you know, Skip the Dishes, Uber Eats, you know, that sort of thing, and start specifically, you know, going down that road, then you know, the vast majority of insurers would decline that, and so you know, definitely don’t start those types of operations before you you talk to your broker first.