Will Car Insurance Cover Me While Delivering Pizza?
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On an average day, motorists are likely to see a pizza delivery driver, if not several and delivering pizzas seems to be a popular occupation from young drivers to older motorists. However, there are several individuals who take on such jobs without ensuring that they are covered in the event of an accident and assume that their existing automobile coverage is sufficient. Unfortunately, this could turn out to be a poor decision and there is a very good chance that any losses that occur while making deliveries will not be covered under a personal auto insurance policy. It is often necessary for drivers to obtain a specific type of coverage to insure such occupations.
Generally, when an individual applies for a delivery job for any type of business, the employer will maintain coverage that is known as a "Hired and Non-Owned Auto" (HNO), but motorists should know that this will usually not cover them should they be involved a traffic accident. This means that there would be no coverage for the employee's vehicle, injuries or any damages or injuries sustained by other parties and the employee can be held liable for any compensation due if they are found at fault for causing the accident. The reason that businesses carry HNO coverage is for liability purposes to protect in the event that the other party seeks payment from the employer.
When motorists purchase personal auto insurance policies there is typically an exclusion in the documentation that specifically states that the coverage will not cover claims for losses that take place if the insured vehicle is being used for commercial purposes. Therefore, a policyholder may want to clarify this issue with the carrier prior to taking on a job that would require them to operate their own automobile for business matters.
Although a motorist's existing policy may not cover an insured while making food deliveries (does not have to be pizza), there may be an affordable car insurance coverage that would protect delivery drivers. Certain companies will offer an endorsement for such situations that will insure a policyholder during the period that a vehicle is being used for work. Such an endorsement will usually increase premiums, but the cost of coverage could be much less than being involved in an uninsured accident. In addition, there are also insurers that will offer commercial policies to individuals who hold this type of occupation, but these policies may be a bit expensive.
It is a wise idea for individuals seeking work as a delivery driver to ensure that they have proper protection in place prior to accepting such a position. The expenses that can arise from traffic accidents can easily exceed the wages that can potentially be earned and the motorist may find themselves suffering a financial strain.