Is your food delivery business properly insured?

17 November 2020

Covid-19, and subsequent national lockdowns have transformed consumer behaviour. Restaurants and other eateries are responding to the current ‘new normal’ by delivering food to their customers at home instead of serving them in-house, and sales of takeaways are soaring. With this surge in demand, many businesses in the food delivery sector are experiencing record growth.

However, many businesses still do not have the appropriate insurance cover in place which is placing their business and its employees at risk of a potential liability. As an employer you have the legal and moral obligation to ensure the correct insurance cover is in place.

We strongly recommend that Food delivery businesses review their current insurance cover to ensure it is fit for purpose and in line with their growth plans.

The Verlingue Food Delivery team has a vast amount of experience in this area, and a proven track record of providing cost-effective insurance solutions for some of the largest food delivery brands in the UK.

Questions we are frequently asked include:

Why do I need food delivery motor insurance?

We see many food delivery businesses wrongly assuming that their delivery drivers should arrange their own cover by extending their own private car insurance.

The reality is that the majority of insurers do not provide such an extension to a standard motor insurance policy, meaning that the delivery drivers are driving without insurance whenever they are carrying out a food delivery. This could expose the businesses to a potential liability.

Why is it difficult to get food delivery motor insurance for your business?

Food delivery insurance is a difficult cover to place given the complexity and risks involved – and even more so in the current hardening insurance market. However, Verlingue has access to a specialist food delivery motor insurance scheme that is not available through other brokers.

What are the key features of the Verlingue Food Delivery Motor Insurance Scheme?

The key elements of cover available through the scheme are as follows:

Modes of Transport / Delivery

  • Occasional Business Use (OBU) for cars, vans or mopeds owned by employees
  • Business Owned Mopeds
  • Business Owned Cars &/or Vans

Cover Available

  • Third Party Only cover (with the option to increase to Third Party, Fire & Theft or Comprehensive cover for business owned cars & vans)

Insured Use

  • Social, Domestic & Pleasure Use plus Business Use for all business owned vehicles, including mopeds
  • Business Use Only for OBU drivers (employees using their own vehicles)

Please note: The cover is arranged under a Fleet policy in the name of the business, with annual premiums starting from £5,600.

Speak to our specialist team

The Verlingue Food Delivery team can advise you on the insurance cover you need to meet your legal obligations, and protect your employees and vehicles.

If you have any questions, or would like Verlingue to review your cover and provide you with a quotation, please get in touch with us.

Contact our team 

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